Co-Reinsurance Agreement

Co-reinsurers are often small reinsurance companies that might otherwise not be able to cooperate with a cedar company because they cannot take as many risks as the contract requires. They may be less familiar with a certain type of risk and are therefore less willing to take much of that risk until they are more experienced. A group of reinsurers who participate in a co-reinsurance system is sometimes called a pool. Co-reinsurance is the term used when several reinsurance undertakings participate in a reinsurance contract. Reinsurance undertakings may act jointly to ensure coverage of the amount of risk borne by the insurer. Businesses can also participate in co-inheritance for tax mitigation purposes. Co-reinsurance can consist of both optional reinsurance and contractual reinsurance. A claim for an amount owed by a party to a second party resulting from an agreement or transaction in response to a claim that the second party has invoked against the first party under another agreement or transaction to determine the net amount due to the first party. See also compensation and reimbursement. A clause in a reinsurance contract that provides for the estimation, payment and full performance of all obligations, including future obligations between the parties in respect of reinsurance losses incurred.

This clause is often found in contracts that reassured employees of compensation and can be optional (usual) or mandatory. Support: a system used for the placement of a reinsurance contract to correct or modify different aspects that have changed in that contract since its inception. In the case of reinsurance, the reinsured insurance company (although a reinsurer can also be a reinsurer in a retrocession contract). Co-insurer/co-insurer: two or more reinsurers jointly cover the same or part of the risks. For certain types of reinsurance protection, reinsurers may require reinsurers to bear a certain percentage of the limit as a co-insurer. The reinsured therefore wishes to minimize any refundable damage. Subjectivities: special conditions requested by reinsurers during the offer phase of a reinsurance contract. In the event of the intervention of a reinsurance intermediary, the intermediary is required to inform the insurer of any expert opinion.

Most of the examples cited above relate to reinsurance contracts covering more than one policy (contract). Reinsurance can also be purchased by policy and, in this case, it is called « optional reinsurance ». Optional reinsurance may be recognised either on a quota basis or on an excess loss basis. Optional reinsurance contracts are usually recalled in relatively short contracts, known as optional certificates, and are often used for large or unusual risks that, due to their exclusions, do not correspond to standard reinsurance contracts. The duration of an optional agreement corresponds to the duration of the policy. Optional reinsurance is usually purchased by the insurer who wrote the original insurance policy, while reinsurance is usually acquired by an officer of the insurance company. . . .

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