Coinsurance Plan Of Reinsurance
Definition of "Coinsurance plan of reinsurance"
Type of proportional reinsurance under which the ceding company (primary insurer) cedes a portion of the face amount of the life insurance policy it has underwritten to its reinsurer. The reinsurer, in the event of the death of the insured, is obligated to pay its pro rata share (thus the alternate name pro rata reinsurance) of the death benefit to the ceding company that in turn must pay the full death benefit to the insured's beneficiary. Under this plan, the reinsurer is also obligated to pay its pro rata share of all settlement options under the life insurance policy to include the cash surrender value. The reinsurer receives from the ceding company a pro rata share of the gross premiums paid on the policy to the ceding company. In return, the ceding company receives a ceding commission (to cover its expenses incurred in marketing, underwriting, and distributing the life insurance policy) from the reinsurer.
Popular Insurance Terms
Historical mortality table that replaced the group annuity table, 1951, whose statistics at that time were more current than the replaced table. This table was subsequently replaced by the ...
Agents' records showing when clients' policies expire. ...
Combination of the funds of many policyholders held in a single account and invested as a single entity. ...
Approved or accepted policy for a particular type of risk. The only type of risk covered by a standard form mandated by law is the fire policy. In 1886, New York adopted a standard fire ...
Low-cost life insurance providing coverage only for a limited time, such as one year, five years, or to age 65. Term insurance costs less at younger ages than a comparable amount of CASH ...
Coverage for a loss incurred by the insured resulting from an infringement of the insured's patent or coverage for a claim made against the insured resulting from infringement by the ...
Physical contact of an automobile with another inanimate object resulting in damage to the insured car. Insurance coverage is available to provide protection against this occurrence. ...
Financial incentives credited to the policy to encourage the policyowner to keep the policy in force. The incentives may be utilized by: (1) applying them to the policy cash value after a ...
Inability of the insured to perform one or more of the important daily duties of that insured's occupation. The income payment to the insured is reduced from that of total disability. ...
Have a question or comment?
We're here to help.