REINSURACNE: A cedant’s premium (written or earned) to which the reinsurance premium rate is applied to calculate the reinsurance premium. Often, subject premium is gross/net written premium income (GNWPI) or gross/net earned premium income (GNEPI), where the term “gross/net” means gross before deducting reinsurance premiums for the reinsurance agreement under consideration; but net after all other adjustments, e.g., cancellations, refunds, or other reinsurance. Normally, subject premium refers to premium on subject business. Also, known as base premium.
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A cedant’s premiums (written or earned) to which the reinsurance premium rate is applied to calculate the reinsurance premium. Often, subject premium is gross/net written premium income (GNWPI) or gross/net earned premium income (GNEPI), where the term “gross/net” means gross before deducting reinsurance premiums for the reinsurance agreement under consideration, but net after all other adjustments, e.g., cancellations, refunds, or other reinsurance. Normally, subject premium refers to premium on subject business. Also know as base premium.
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REINSURACNE: See: Base Premium, Premium Base, Underlying Premium.
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UK: See: Base Premium.

UK: A clause in casualty reinsurance contracts that provides coverage for losses reported to the reinsurer or the company, as applicable, during the term of the current reinsurance contract, but resulting from occurrences that took place during a prior period. Sunrise clauses are used to reactivate coverage that no longer exists due to the existence of a sunset clause. See Sunset Clause.
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REINSURANCE: A clause occasionally found in casualty reinsurance or claimsmade contracts that provides coverage for losses reported to the (re)insurer during the term of the current contract, but resulting from pre-inception occurrences. Sunrise clauses are used to reactivate coverage that no longer exists due to the existence of a sunset clause. (See SUNSET CLAUSE).
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UK: A clause that provides retroactive cover in respect of losses occurring before the inception of a (re) insurance contract.
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A clause in casualty reinsurance contracts that provides that the reinsurer will not be liable for any loss that is not reported to the reinsurer within a specified period of time (typically 5, 7 or 10 years) after the expiration of the reinsurance contract. See Sunrise Clause.
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REINSURANCE: A clause which restricts cover to claims notified during the period from the inception of a (re) insurance contract to a specified date after the expiry of that contract.
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Reinsurance or claimsmade policy clause restricting cover to losses reported within a restricted period after the expiry of the policy. The period may be short, a ‘mini tail’, e.g. 60 days, or longer, e.g. three years for certain reinsurance contracts. See EXTENDED REPORTING PERIOD.

A form of pro rata reinsurance under which the ceding company cedes that portion of its liability on a given risk which is greater than the portion of risk the cedent retains (i.e., net line), and the premiums and losses are shared in the same proportion as the ceded amount bears to the total limit insured on each risk.

A form of proportional reinsurance where the reinsurer assumes pro-rata responsibility for only that portion of any risk which exceeds the company’s established retentions.

A reinsurance treaty whereby one or more reinsurers agree to accept amounts of Reinsurance, called lines, in a certain range of values over a specified amount (line) retained by the original insurer, the losses being shared proportionately by the original insurer and the reinsurer(s).

The Ceding Company agrees upon a quota share of every risk subject to a limit, so that it retains a part of the quota and cedes the balance to the Reinsurers. Any surplus over and above the quota share limit is ceded as a surplus, which again is subject to an agreed limit. Thus, the two covers are combined under the treaty.

The Ceding Company decides the limit of liability which it wishes to retain on any one risk or class of risk and Reinsurers only those amounts surplus over and above its own net retention. It is generally handled on a pro-rata basis.