[T050]

treaty, reinsurance

A reinsurance agreement between an insurance company and a reinsurer, usually for one year or longer, which may be divided into two broad classifications:

1) the participating type which provides for sharing of risks between the ceding company and the reinsurer; and

2) the excess type which provides for indemnity by the reinsurer only for loss which exceeds some specified predetermined amount.

Copyright: The Rough Notes Company, Inc., 1998, All Rights Reserved. 3040100