Insurance contracts that do not fall within the scope of life insurance are called general insurance. The different forms of general insurance are fire, sea, engine, accident and other non-life insurance. Description: Physical assets are susceptible to damage and it is necessary to protect the economic value of assets. To this end, the General Insurance Products b Disaster Recovery Bonds and Regional Pools: Cash recovery bonds are the same purpose as a business insurance policy and help the government/policyholder get back on track after a catastrophic event. All claims arising from basic policies of assignors that arise during the term of the reinsurance contract are covered even if they arise after the expiry date of the reinsurance contract. Rights arising from basic policies of transferors which are not incurred outside the term of the reinsurance contract shall not be covered even if they arise during the term of the reinsurance contract. In such circumstances, mutually supportive pools become very useful. Examples of risks may be crop insurance, workers` compensation insurance, etc. In the case of contractual reinsurance transactions, the transferring company transfers to the insurer all the risks inherent in a business book. For example, an initial insurer could transfer its entire book from the commercial car or all the risk of its owners.
Both parties will enter into an agreement known as a contract in which the reinsurer is required to accept all covered transactions. When an insurance company issues an insurance policy, such as an auto insurance policy, it assumes responsibility for the cost of accidents that occur within the parameters defined in the policy. After Hurricane Andrew hit South Florida in 1992 and caused $15.5 billion in damage at the time, it became clear that U.S. insurers had seriously underestimated the extent of their liability for property damage in a megadisc. Until Hurricane Andrew, the industry thought $8 billion was the largest damage. Reinsurers then reassessed their position, leading primary insurance companies to reconsider their civil reinsurance needs. A document forming an optional reinsurance investment. In the case of optional reinsurance, the reinsurer must cover the individual “risk”, e.g. a hospital, in the same way as a primary undertaking, taking into account all aspects of the operation and the hospital`s attitude to safety and security registration. In addition, the reinsurer would also take into account the hiring and management of the original insurer seeking to protect the reinsurance. This type of reinsurance is called optional because the reinsurer has the power or “ability” to accept or reject, in whole or in part, a policy offered to him, unlike contractual reinsurance, under which he must accept all applicable policies once the agreement is signed.
Embedded value is the sum of a life insurance company`s net asset value and present value of future profits. Description: This measure only takes into account the future profits of existing operations and ignores the possibility of introducing new directives, so that the profits of the latter are not taken into account. . . .