- Consequential loss Any loss arising by consequence or collaterally to one person, from the culpable act or omission of another.
- Deductible The level, in Non-Proportional Reinsurance below which the Reinsured will retain losses for own account expressed either as an annual monetary amount or as a ratio of claims to premium (Claims Ratio).
- Excess of Loss A Non Proportional Reinsurance, where the Reinsurer’s liability only attaches when a loss exceeds a certain amount and then only for the excess of that figure up to an upper limit.
- Ex-gratia A “claim payment” made by the Reinsured “out of favour” without obligation. If a claim is paid in full or part by a Reinsured without admission of liability and without waiver of right, it is paid ex-gratia.
- Facultative Reinsurance An agreement between the Reinsured and the Reinsurer relating to one specific risk, which the Reinsurer has agreed to reinsure on such terms and conditions as may be prescribed by the Reinsurer.
- First Loss Basis Such portion of any risk in respect of which the Reinsured shall solely be liable for payment of any claims up to a specific amount and the Reinsurer shall be liable for amounts exceeding the stated / agreed amount in such proportion as may be agreed.
- Gross Net Retained Premium Income Gross retained premium income less premium returns and rebates, reinsurance cessions, production costs and brokers_/agents_ commissions.
- High Radioactivity Zone or Area
- for Nuclear Power Stations and Nuclear Reactors, the vessel or structure which immediately contains the core (including its supports and shrouding) and all the contents thereof, the fuel elements, the control rods and the ..irradiated fuel store; and
- .. for non-reactor Nuclear Installations, any area where the level of radioactivity requires the provision of a biological shield.
- Layered A term used to describe a stratum of cover where the risk is placed in sections (layers). Each layer of the programme operates consecutively and each may be underwritten by a different Reinsurer.
- Loss Any One Risk Each and every loss affecting any one risk and shall be considered as individual claims hereunder irrespective of the number of risks affected in the same loss occurrence. “Any One Risk” shall have the equivalent meaning.
- Material Change in Ownership or Control Material change in the right or power directly or indirectly to dictate to the management of, and otherwise control such party including, without limiting the generality of the foregoing, holding directly or indirectly the majority of the issued share capital or members_ interest of such party, controlling a majority of the voting rights in respect of the issued shares or members_ interests of such party, or the right to appoint or remove directors holding a majority of the voting rights at meetings of the board of directors of such party. Either party shall be entitled at all reasonable times to inspect the share register, member’s register and other books, records and documents of the other party for purposes of enforcing its rights.
- Maximum Possible Loss The maximum monetary loss which could be sustained by insurers on a single risk as a result of a single fire or explosion when the most unfavourable circumstances combine and when, as a consequence, the fire is not at all or not satisfactorily fought against and is therefore only stopped by impassable obstacles or a lack of physical property.
- Minimum and Deposit Premium A minimum agreed premium paid by the Reinsured to the Reinsurer at the inception of reinsurance which subject to adjustment at a later date when all of the relevant rating facts are known. Adjustments are normally subject to the Reinsured’s minimum premium requirements.
- Net Retained Loss Such risk or portion of risk in respect of which liability is assumed by the Reinsured for its own account and which is excluded from the Reinsurance agreement.
- . Any Nuclear Reactor;
- Any factory using nuclear fuel for the production of Nuclear Material, or any factory for the processing of Nuclear Material, including any factory for the reprocessing of irradiated nuclear fuel; and
- Any facility where Nuclear Material is stored, other than storage incidental to the carriage of such .material.
- Nuclear Material Nuclear fuel, other than natural uranium and depleted uranium, capable of producing energy by a self-sustaining chain process of nuclear fission outside a Nuclear Reactor, either alone or in combination with some other material.
- Nuclear Reactor Any structure containing nuclear fuel in such an arrangement that a self-sustaining chain process of nuclear fission can occur therein without an additional source of neutrons.
- Obligatory Reinsurance A reinsurance agreement under which the original Reinsured must cede and the Reinsurer must accept all risks for falling into the class of business covered by the agreement.
- Pools and Pooling Arrangements Pooling is a risk spreading device in terms whereof a combination of Reinsureds in a specific class of insurance agree to share the premiums and losses in agreed proportions.
- Production, Use or Storage of Nuclear Material The production, manufacture, enrichment, conditioning, processing, reprocessing, uses, storage, handling and disposal of Nuclear Material.
- Probable Maximum Loss The maximum loss that might be expected at a cautious estimate to occur as a result of a single loss event taking into consideration all the circumstances of the risk.
- Property All land, buildings, structures, plant, equipment, vehicles, contents(including but not limited to liquids and gases) and all materials of whatever description whether fixed or not.
- Radioactive Products or Waste Any radioactive material produced in, or any material made radioactive by exposure to the radiation incidental to the production or utilization of nuclear fuel, but does not include radioisotopes which have reached the final stage and fabrication so as to be usable for any scientific, medical, agricultural, commercial or industrial purpose.
- Reinstatement The restoration of cover under an excess of loss treaty after its exhaustion, wholly or partially following payment of claims. Where reinstatements are applicable, the number of reinstatement and the method of calculation of the extra premium payable are specified.
- Reinsured The party issuing the original policy of insurance.
- Reinsurer A Reinsurance company or underwriter which accepts the risks which the insurance company insures.
- Reinsurance Agreement An agreement whereby an insurance company i.e. the Reinsured transfers part of its risk under insurance policies it writes by means of a separate contract with a Reinsurer.
- Self Insurance Any risk or portion of risk in respect of which the Insured / policy holder accepts full liability for payment of claims, losses or costs arising from such risk.
- Set-Off The merging (wholly or partially) of a claim in a liquidated amount by one party against another in a counter-claim by the latter against the former.
- Stop Loss A specialized form of Excess of Loss reinsurance, usually applicable to certain lines of insurance showing wide loss variation. The Reinsurer is not responsible for the amount by which any individual claim exceeds a fixed sum, but instead indemnifies the Reinsured in respect of an annual loss ratio on a particular portfolio in excess of a stipulated level.
- Ultimate Net Loss Any One Risk The sum actually paid by the Reinsured following a loss occurrence including expenses of litigation, if any, and all other loss expenses of the Reinsured, (excluding, however, office expenses and salaries of officials of the Reinsured) less salvages, recoveries (including recoveries from all other Agreements) and any excess paid by the Insured, other than underlying Agreements, shall be first deducted from such loss to arrive at the amount of liability, if any, attaching hereunder.
