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Azerbaijan

Established

Glossary - O

Obligatory reinsurance (also: treaty reinsurance, obligatory treaty)
reinsurance treaty under which the reinsurer participates in a → cedant's total, precisely defined insurance portfolio. This is in contrast to → facultative reinsurance. An agreement between reinsured and reinsurer (usually for pro rata reinsurance, and usually for one year or longer), whereby the ceding company is obligated to cede certain risks as provided in the agreement and the reinsurer is obligated to accept

ORIGINAL TERMS
A reinsurance expression indicating that the terms underwritten by the reinsurer are on exactly the same basis as those of the ceding company in the original policy

OVERRIDING COMISSION
An additional commission paid to a ceding company (insurer or reinsurer) to cover the overheads in administering the reinsurance.