|
|||||
|
|
|
||||
ART INSURANCE SERVICESCAPTIVE/RRG INDUSTRY
DEFINITIONS
Association Captive Insurance
Company – Any
company that insures risks of the member organizations of the Association and
their affiliated companies. Captive Insurance Company – any pure captive insurance
company, association captive insurance company, or industrial insured captive
insurance company formed or licensed under the provisions of this
chapter. A company, which is wholly owned by another
organization (generally non-insurance), the main purpose of which is to
insure the risks of the parent organization. Commutation – In the event of the termination
of this contract, the Reinsurer shall be released from all further liability
to the company for all loss and allocated loss expense not finally settled by
the company as of the date of termination.
In consideration of that release, the Reinsurer shall pay to the
Company all amounts of loss and allocated loss expense due for losses finally
settled. Federal Risk Retention Act – Preempts some state
functions. For example, the act does not
allow a state insurance regulator to prohibit risk retention groups domiciled
in other states from operating within the regulator’s state, thus eliminating
the need for a fronting company. Fronting – Most commonly refers to the
practice of a non-admitted insurer (or an insured with a captive insurance
company contracting with a licensed insurer to issue an insurance policy for
regulatory or certification purposes. Industrial Insured – An insured which procures the
insurance of any risk or risks by use of the services of a full time employee
acting as an insurance manager or buyer and whose aggregate annual premiums
for insurance on all risks total at least $25,000 and who has at least 25
full-time employees. Industrial Insured Captive
Insurance Company
– Any company that insures risks of the industrial insured’s that comprise
the industrial insured group, and their affiliated companies. Loss Portfolio Transfer – Is retrospective in nature, as
they involve the transfer of incurred losses.
Such programs can utilize reserve discounting – on either a structured
or an unstructured basis, and/or they can have adjustment provisions to take
into account any future reserve deterioration. |
|||||
|
|
|
BACK – USE ARROW TO PRINT USE PRINT PREVIEW |
|||
