Category: Insurance tips Release Date: 2006-08-01
Reinsurance refers to the insurer of its commitment to the insurance business, to cover forms part of the transfer to other insurers behavior. Ceding company's reinsurance contracts and sub into the company to determine the relationship between rights and obligations of the parties agreement, known as reinsurance contracts.
Compared with the original insurance contracts, reinsurance contracts have the following characteristics: First, the contracts of the main difference. The main body of the original insurance contract is the insured and the insurer, the main body of re-insurance contracts are insured person, namely, separation of people and points into the human. Second, the subject of a different contract. The subject of the original insurance contracts, or property, or person, the subject of re-insurance contract is underwritten insurance, sub-out of the original insurance contracts of insurance business, in part, be transferred to another insurer. Third, the contract of a different nature. The nature of the original insurance contract, or compensatory, or paid sex, and then due to occur in the insurance contract between an insurer and its direct purpose is to make the original insurer's responsibility to share, so, then is the nature of insurance contracts shared responsibility of .
Re-insurance contracts can be classified according to different bases. By way of reinsurance division can be divided into proportional reinsurance contracts and non-proportional reinsurance contracts, the former focuses on the insurance amount based on the amount of compensation based on the latter. According to different reinsurance arrangements are divided into temporary reinsurance contract with reinsurance contracts and reinsurance contracts appointment.
Reinsurance contracts generally include the following provisions:
Terms of common interests. It is about the rights of both sides of the provisions of the original insurer and reinsurance in the insurance premiums received, to a third party recovery, margin payment, insurance, arbitration or litigation in such areas as the insured person or beneficiary faces in terms of common interests. To safeguard the interests of reinsurance, the provision also provides that in general, then the insurer does not assume more than the responsibility of the reinsurance contract outside the scope of indemnity and cost of reinsurance contracts do not assume more than the prescribed limit of indemnity and cost of the above.
Terms of fault or negligence. The provisions in the insurance period, insurance, accident, and the original insurer in the implementation of the reinsurance contract terms, since the original insurer's fault or negligence and not willful damage, then the insurer should bear the corresponding liability.
Safeguards the rights of both. It requires the original and re-insurers, insurers should ensure that each other's enjoyment of their rights in order to ensure that legitimate interests are protected.
Other provisions. That insurance contracts should have a common provision.
The basic contents of the reinsurance contracts include: the contracting parties of the name, address; the insurance period; enforcement provisions, including re-insurance coverage and methods; premium calculation and payment methods; indemnity clause; arbitration clause; insurance contracts terminated; monetary terms, using to provide for self-responsibility models, the responsibility of the amount of reinsurance premium and the indemnity paid to use the currency as well as the junction of the exchange rate applied; insurance liabilities, except share and responsibilities; dispute processing.
