The capital requirement to settle the ceding
company's claim is much higher.
Such disputes generally center on whether the "reinsurance accepted" limit of a facultative certificate constitutes a limit on the reinsurer's obligation to reimburse a ceding
company for expenses paid in addition to the limits of the certificate.
A transaction encompassing a block of the ceding
company's book of business, the reinsurer must accept all business included within the terms of the reinsurance contract.
The draft Regulation makes a distinction between the ceding
of licences between competitors and between non-competitors, given that the competition problems that arise in the two cases are not the same.
93-6, Accounting for Multiple-Year Retorspectively Rated Contracts by Ceding
and Assuming Enterprise, is a specialized industry issue that affects property-casualty insurers (ceding
enterprises) and reinsurers (assuming enterprises).
The capacity in which each party asserts its claim must be the same; for instance, if a reinsurer has several contracts with the ceding
company, the outstanding balances of each contract may be offset against each other.
It is a licensed insurer and was established for the limited purpose of issuing the surplus notes and entering into reinsurance agreements with SBLI of Massachusetts (SBLI of MA, or the ceding
all or a portion of the risk to reinsurers would help minimize the effect of abnormal attritional or catastrophic losses, which could threaten a microinsurer's financial stability.
Under the bill, where a mortgage guaranty insurer cedes insurance to another mortgage guaranty insurer not licensed under New York law, or to an insurer that insures or reinsures other lines of insurance in addition to mortgage guaranty insurance, the ceding
insurer can receive credit for such reinsurance as an asset or as a reduction from liabilities where the assuming insurer establishes and maintains in a segregated trust assets equal to or greater than the assets found in the mortgage guaranty insurer's contingency reserve, or four percent of the outstanding total liability under the aggregate insurance policies assumed from the mortgage guaranty insurer.
COMPANIES AND reinsurers could be freed from the strictures of current regulations if a new principles-based reserving system is put in place, according to a presentation made by actuaries to state insurance regulators.
Two of the models require the temporary ceding
of authority by a diocesan bishop in a troubled diocese to an AEO bishop, granting him or her full jurisdiction over a church or parish seeking AEO.
First, some contend that fronting threatens the solvency of the ceding