Catastrophic reinsurance is a form of reinsurance that reimburses the ceding company for the accumulation of losses in excess of a specified amount arising from a single catastrophic event or series of events.
Catastrophic reserves are reserves on a captive’s balance sheet intended to cover neither known nor incurred but not reported (IBNR) losses. The ideal would be to create these reserves in case of disasters for a rainy day, when they are needed.
A catastrophic loss is a loss that exceeds the working layer, usually of such a magnitude that it is difficult to predict and therefore is rarely self-insured or retained.
Category 3 water is water heavily contaminated with contaminants, including fungi and bacteria. The universal property and liability policy exclusions for fungal/bacterial losses automatically apply to Category 3 water losses due to bacteria and/or fungi in the water. Gaps in Category 3 water loss coverage can be filled using the same risk management tools and environmental insurance products that were created in 2003 for fungus/mold risks.
Causes of loss are hazards that can cause or cause loss or damage. It can be direct (the action immediately precedes the loss) or indirect (part of a continuous chain of events leading to the loss).
Causes of Loss Forms are Office, Inc. insurance services. (ISO), forms of commercial property insurance that identify and identify the causes of loss (or hazard) for which coverage is provided. The cause of loss form is combined with one or more of the coverage forms, commercial property terms form, general policy terms form, and declarations to form an ISO commercial property policy. There are three causes of loss patterns: basic, general, and specific causes of loss patterns. The main and general causes of loss forms are called hazard forms; they provide coverage for losses only for specific causes that are covered by the policy. The form of special causes of loss is the form of all risks; it provides coverage for damages for any reason other than those specifically excluded.
An assignment is when a company reinsures its liability with another. The original or primary insurer, the insurance company acquiring reinsurance, is the “assignor” that “cedes” the business to the reinsurer.
Assignor - an insurer-assignor or reinsurer. The assigning insurer is the insurer that signs and issues the original primary policy to the insured and, under the contract, transfers (assigns) part of the risk to the reinsurer. A cedant reinsurer is a reinsurer who transfers (cedes) a portion of the underlying reinsurance to a retrocessionaire.
The assignment fee is a fee paid to the transferring insurer/reinsurer by the receiving reinsurer (any entity can be captive) to compensate the cedant for various costs incurred by the ceding insurer, such as underwriting and business acquisition costs.