What does Clash cover mean?
reinsurance
Clash Cover — a form of reinsurance that covers the cedent’s exposure to multiple retentions that may occur when two or more of its insureds suffer a loss from the same occurrence. This reinsurance covers the additional retentions.
What is Clash loss?
A disaster scenario where various LINES of INSURANCE are simultaneously impacted by losses. The resulting CLAIMS may be particularly large and can negatively impact the financial condition of INSURERS and REINSURERS. See also CATASTROPHIC HAZARD, SHOCK LOSS.
What is overriding commission in reinsurance?
A fee or percentage of money which is paid to a party responsible for placing a retrocession of reinsurance. In insurance, a fee or percentage of money which is paid by the insurer to an agent or general agent for premium volume produced by other agents in a given geographic territory.
What are ceding fees?
A ceding commission is a fee paid by a reinsurance company to a ceding company to cover administrative costs, underwriting, and business acquisition expenses. The reinsurer will collect premium payments from policyholders and return a portion of the premium to the ceding company along with the ceding commission.
What are different types of commission?
Nine types of sales commission structures
- Base rate only commission.
- Base salary plus commission.
- Draw against commission.
- Gross margin commission.
- Residual commission.
- Revenue commission.
- Straight commission.
- Tiered commission.
What is override fee?
An “override” (also sometimes called an overwrite) is a commission paid on the sales someone else makes. For example, you may have a sales person with a 5% commission (earns 5% of the sales value of whatever they sell). It is a common sales compensation mechanic in small or early stage businesses.
Who gets ceding commission?
A ceding commission is a fee a reinsurance company pays to a ceding company for administrative, underwriting, and business acquisition expenses. Reinsurers collect premium payments from policyholders and give a portion to a ceding company, along with a ceding commission.
What is a fronting fee?
Fronting Fee means the fee charged by a Fronting Lender for issuing a Letter of Credit at a rate per annum as is agreed in writing between the Principal Borrower and the applicable Fronting Lender from time to time.
Which is the best definition of Clash cover?
Definition. Clash Cover — a form of reinsurance that covers the cedent’s exposure to multiple retentions that may occur when two or more of its insureds suffer a loss from the same occurrence. This reinsurance covers the additional retentions.
What does clash mean for an insurance company?
Clash insurance is intended to protect the insurer when numerous claims arise from an out-of-the-ordinary event. Clash coverage allows an insurance company to share substantial risks, and the accompanying substantial loss, with other companies.
What is the definition of a clash event?
To some extent, the definition of “clash event” varies according to the intentions of the parties. But the core definition often has three main components. First, there must be loss arising out of multiple policies held by one insured or similar policies by multiple insureds.
Which is the best description of Clash reinsurance?
Clash reinsurance is a type of reinsurance coverage protecting an insurer from excessive claims on a single event. There can be several scenarios in which clashes may result in excessive claims after a single coverable event.
