Reinsurance terms

Question 1

the act of sharing risk with reinsurers

Answer 1

to cede

Question 2

original insurer passing the risk to reinsurers

Answer 2

cedant

Question 3

the share of risk passed to reinsurers

Answer 3

cession

Question 4

The document used to present the claim to reinsurers under an excess of loss contract.

Answer 4

Collecting note

Question 5

Reinsurance purchased for an individual risk, generally because it would not fit within any other part of the reinsurance already available

Answer 5

Facultative reinsurance

Question 6

reinsurance where the premium and claims do not have a direct correlation e.g. excess of loss, stop loss

Answer 6

non-proportional reinsurance

Question 7

reinsurance where premium and claim are shared between insurer and re-insurer in pre-agreed proportions e.g. quota share ad surplus treaty reinsurance

Answer 7

proportional insurance

Question 8

A reinsurer obtaining reinsurance for itself

Answer 8

Retrocedant

Question 9

A cession where the entity ceding said cession is already a reinsurer

Answer 9

Retrocession

Question 10

A reinsurer accepting reinsurance from an entity that is itself a reinsurer

Answer 10

Retrocessionaire