ADDENDUM
A document specifying agreed amendments to an insurance (or
re-insurance) contract.
ADJUSTMENT PREMIUM
Adjustment premium payable after expiration of an insurance contract,
constituting - together with a deposit premium - the premium required
under the contract.
AGGREGATE EXCESS OF LOSS TREATY
a form of excess of loss treaty reinsurance under which the reinsurer
responds when a ceding insurer incurs losses on a particular line of
business during a specific period (usually 12 months) in excess of a
stated amount.ARBITRATION CLAUSE
A provision sometimes appearing in reinsurance treaties whereby the
parties agree to submit any dispute or controversy to an unofficial
tribunal of their own choosing in lieu of the tribunals provided by the
ordinary process of law. Although the wording of the clause may vary, it
normally provides for the appointment of two arbitrators, one selected
by each party, who in turn appoint an umpire, and the decision of a
majority of the arbitrators is binding on the parties to the reinsurance
treaty.
ASSUMED PORTFOLIO
The transfer of in-force insurance liability from an insurer to a
reinsurer (or vice versa) by the payment of the unearned premium reserve
on those policies alone, or the concurrent transfer of liability for
outstanding losses under those policies by the payment of the
outstanding loss reserve from the insurer to the reinsurer (or vice
versa). The former is a premium portfolio, the latter a loss portfolio. |
