An amount paid by the ceding insurer to the reinsurer in consideration for the liability assumed by the insurer.

Coverage that a primary insurer purchases from another company to protect itself from losses beyond a dollar amount it feels it can safely carry. Reinsurance is an arrangement whereby one or more companies (the reinsurer(s), agrees to indemnify another insurance company, the ceding company, for all or part of the insurance risks underwrittten by the ceding company. It reduces net liability on individual risks which enables the ceding company to underwrite more business than its own resources can support.

Funds that an insurer sets aside to cover obligations to policyholders. The amount may represent both actual and potential liabilities.

A special provision or group of provisions that may be added to a policy to expand or limit the benefits otherwise payable.

A person or company that sells insurance.

An insurance company that either through an independent insurance agent or broker, that provides coverage in the market. The buyers of primary insurance are consumers.

The funds that an insurer holds specifically for the fulfillment of its policy obligations.

The payment o policyholder agrees to make for an insurance policy.

A risk for which no normal insurance market exists.

An insurance organization established by an entity to insure its own risk.

The level of underwriting business an insurer can support based on its ability or willingness to accept risks with certain protection limits.

The potential maximum claim against an insurer.

Premium income generated by insurance companies directly through reinsurance less payments made for business reinsured.

A portion of a premium for which the insurer has already provided protection to the policyholder.

An insurance professional whose job is to estimate statistical risks, set premium levels, and analyze other technical aspects of insurance.

An incident or series of related incidents causing insured losses of $25 million or more.

The sum of all admitted assets that are valued in accordance with state laws and regulations as reported by the company in its financial statements filed with state insurance regulatory authorities.

Coverage on ships or cargoagainst loss or damage by enemy action and against damages sustained in fighting such action.