Glossary
- Quota Share Reinsurance
- A reinsurance treaty arrangement that follows the fortunes of the company purchasing the reinsurance with the reinsurer receiving the same percentage of premium as it pays in claims.
- Reinsurance
- Insurance contracts that protect an insurance or captive insurance company from exposure to excessive financial risks.
- Rent-a-Captive
- An arrangement whereby the capital base of a captive insurer is leased to enable the user to accept insurance business without the need to separately finance or fund a captive of its own.
- Risk Retention Act
- The Federal Liability Risk Retention Act of 1986 which allows the formation of Risk Retention groups providing that that all owners are insured with the Risk Retention Group and engaged in similar businesses or activities
- Risk Retention Group
- An onshore group or association captive that is formed under the provisions of the Federal Liability Risk Retention Act of 1986
- Risks Attaching
- Reinsurance that covers losses with regard to policies that incept or renew during the contract period.
- Segregated Cell Company
- A form of Rent-a-Captive where the assets of each user are protected from other users by law.
- Self-Insurance
- When a company, or group of companies, pays part of its own insurance losses and also assumes the role of an insurer by establishing systems to pay those claims.
- Self-Insured Fund
- An arrangement whereby a group of companies band together to mutually self-insure their WCA exposures.
- Specific
- A form of insurance or reinsurance which relates to an individual loss.
