What are reinsurance costs?
Like primary insurance, reinsurance is a mechanism for spreading risk. A reinsurer takes some portion of the risk assumed by the primary insurer (or other reinsurer) for premium charged. Each contract must be individually priced to meet the particular needs and risk level of the reinsured.
What is a policy of reinsurance?
Reinsurance occurs when multiple insurance companies share risk by purchasing insurance policies from other insurers to limit their own total loss in case of disaster. By spreading risk, an insurance company takes on clients whose coverage would be too great of a burden for the single insurance company to handle alone.
What is per risk reinsurance?
Per Risk Excess Reinsurance — also known as specific, working layer, or underlying excess of loss reinsurance. A method by which an insurer may recover losses on an individual risk in excess of a specific per risk retention. Has both property and casualty applications.
What does xol mean insurance?
XOL – Excess of Loss.
What is XS reinsurance?
What Is Excess of Loss Reinsurance? Excess of loss reinsurance is a type of reinsurance in which the reinsurer indemnifies–or compensates–the ceding company for losses that exceed a specified limit.
What is a Retrocessionaires?
“Retrocessionaire” noun/retro-cession-air. A reinsurance company or insurance company that assumes reinsurance risk ceded by another reinsurance company or insurance company acting as a primary reinsurer of an insurance company.
Is the reinsurance fee based on covered lives?
Therefore, to the extent that COBRA continuation coverage is provided for a plan or policy that is subject to the fee, COBRA qualified beneficiaries are counted. Yes; the Reinsurance Fee is based on “covered lives,” which includes all individuals covered under the plan or policy.
Who is the primary insurer of a reinsurance policy?
The company that issues the policy initially is known as the primary insurer. The company that assumes liability from the primary insurer is known as the reinsurer. Primary companies are said to “cede” business to a reinsurer. Types of Reinsurance: Reinsurance can be divided into two basic categories: treaty and facultative.
What’s the difference between PCORI and reinsurance fees?
While the PCORI Fee and the Reinsurance Fee are both calculated based on the number of “covered lives” under a plan and use similar methodologies for counting those lives, there are significant differences between the two fees, such as the amount, due date, payment method and treatment of individuals covered by retiree medical plans.
Is there a fee for reinsurance in Puerto Rico?
Yes; the term “United States” is defined in the regulations to include any “possession of the United States,” specifically including Puerto Rico, so an issuer or plan sponsor in Puerto Rico would be subject to the fee. No; under PPACA section 1341, transitional reinsurance programs are to be established in each state.
