Method of Reinsurance
Method of reinsurance
By the contract of reinsurance, the insurer (the transferor) and the person or reinsurers (acceptor / s) agree to cede and accept, respectively, some or all of one or more risks, remembering how will the distribution of premiums of the assumption of risk (premiums of the insurance policy) and also the distribution of payments for liabilities arising from the risk (payment of claims covered by the policy). Can distinguish two major sets of criteria to distribute bonuses and responsibilities:
Proportional reinsurance: The amount of responsibility that corresponds to the reinsurer in the event of loss is calculated with the proportion that is between the premium received by the (first transferred) and the total premium of the policy. Therefore, the reinsurer participates in claims and premiums at the same rate.
Non-proportional reinsurance: The amount of responsibility that the reinsurer in the event of loss is the excess over a certain threshold (called precedence), the amounts under this priority are always on behalf of the insurer. Therefore, the reinsurer only responds to claims that exceed a certain value (priority). The dictionary defines customary law as insurance reinsurance insurance contract, under which a new insurer takes upon himself, in whole or in part, the risks insured by a first insurer, without affecting the first contract and that ceding or paying part of the original premium. Reinsurance, simple or simply, is the medium that uses the insurance company (transferor company) to accept transactions directly from the public, to reduce its responsibility, distributing it among other insurance companies who accept responsibility for for participation in the original premium. l, k, ll ‘;; The insured maintains contractual relationship only with the insurance company (transferor), and in any case such a contractual relationship may be affected by the relationship between the insurer and reinsurers that may have agreements with the insurer.