The broker who processes premiums and claims under reinsurance placed by more than one broker for the cedant.

Indication of the state where the vessel is registered and which is responsible for safety standards. A shipowner may choose a particular state because of less rigorous standards. Such a state is a flag of convenience, e.g. Liberia. Underwriters take account of the ‘flag’ when assessing the risk.

Marine insurance whereby the reinsurer receives all of the cedant’s interest up to a predetermined amount. For example, if an underwriter accepts £100,000 on a vessel and reinsures £50,000 on a first interest basis, any amount ‘closed’ up to £50,000 will be ceded to the reinsurer. If only £80,000 is closed to the underwriter it is his share of the risk that goes down as the reinsurer’s line holds good in the sum of £50,000.

A fixed non-adjustable premium. Sometimes used in reinsurance in respect of a portfolio of business that remains relatively unchanged over time or where a minimum premium situation applies.