An agreement under which Lloyd’s underwriting members who are members of a syndicate for a year of account to be closed are reinsured by underwriting members who comprise that or another syndicate for a later year of account against all liabilities arising out of insurance business underwritten by the reinsured syndicate. The practice will end when Lloyd’s moves to GAAP accounting.

UK: a reinsurance premium paid by the members of a closing syndicate, usually to the members of the same numbered syndicate for the following year of account, 36 months after the start of the year of account, to enable the profit or loss of the year of account to be reported; the amount of the premium covers all liabilities arising from the year of account including outstanding claims, IBNR and claims handing expenses.
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A reinsurance which closes a year of account by transferring the responsibility for discharging all the liabilities that attach to that year of account (and any year of account closed into that year) plus the right to any income due to the closing year of account into an open year of account of the same or a different syndicate in return for a premium. Where a reinsurance to close is effected between members of the same syndicate the reserves of the closing year of account constitute the premium for a reinsurance to close. This premium must be equitable as between the members of the two years of account concerned which means that neither the reinsured nor the reinsuring members should expect to profit from the transaction at the time it is concluded. Where a reinsurance to close is effected between members of different syndicates the managing agent of the reinsuring members will want to make a profit from the transaction for those members and will set the reinsurance to close premium accordingly. This usually involves a loading on the reserves of the closing year of account.
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REINSURANCE: The reinsurance premium, under the Lloyd’s system of three year accounting, payable to the following open syndicate year, to cover all outstanding claims liabilities closing the year of account. This reinsurance may also be provided by another syndicate or arrangement as with Equitas accepting the 1992 and prior liabilities of Lloyd’s syndicates in 1996.

The party that is reinsured, i.e. the ceding office or cedant.

UK: A reinsurance company that only writes business with insurance companies, or a primary insurance company that also writes reinsurance contracts for other insurers; the expressions reinsurance inwards and reinsurance outwards refer to the acceptance and placing of reinsurance respectively.
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UK: an insurer who accepts insurance from another insurer or reinsurer
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An underwriter of reinsurance. If the reinsurance is underwritten at Lloyd’s the reinsurer(s) will be one or more syndicates. If the reinsurance is not underwritten at Lloyd’s the reinsurer(s) will be one or more insurance companies. Some reinsurances may be underwritten by both syndicates and insurance companies.
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MEDICAL,USA: Insurance company that accepts all or part of an insurance policy from the primary insurance company. Also called assuming company .
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See: Reinsurance.
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REINSURANCE: The Company (or the syndicate in case of Lloyd’s) which accepts Reinsurance from the Ceding Company.
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REINSURANCE: The insurer that assumes all or a part of the insurance or reinsurance risk written by another insurer.

Covers loss due to goods being rejected or condemned by the governmental authorities of the importing state. Insurance is arranged by exporters of consumer goods, including food, that may be perceived to have a health risk. Cover is conditional upon high standards of quality control in the country of origin.

Financial benefits provided on death or retirement, other than permanent health benefits or sums payable on accidental death in service, that are relevant to an occupational pension scheme for the purpose of ‘exempt approved’ status. IR 12 (Practice Notes) sets out the detail.

Cleaning-up and restoring land that has become contaminated. Costs can be recovered under first party insurances and liability to third parties may be covered under environmental impairment liability. Local authorities can compel owners/occupiers to remediate contaminated land.

A non-dominant cause linked to a chain of events that culminates in a loss. The remote cause facilitates the loss rather than causes it. In Marsden v. City & County Assurance Co. (1865) a fire broke out and a mob assembled and broke plate glass windows in neighbouring premises with view to looting. The action of the mob, not the fire, was the proximate cause.

Describes the lack of a sufficiently direct connection between the wrong complained of and the injury alleged to have been sustained. ‘Negligent’ defendants are not liable for damage that is too remote.
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Where damage is only indirectly caused by an event giving rise to liability, or where the occurrence of the damage could not reasonably have been foresee, it is said to be remote and is not recoverable.