Reinsurance
/ˌriːɪnˈʃʊərəns/
Definitions
- (n.) A contract whereby an insurance company transfers part of its risk portfolio to another insurer to reduce potential loss.
The insurer purchased reinsurance to protect against catastrophic claims.
Related terms
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Commentary
In drafting reinsurance agreements, precise definition of covered losses and risk retention levels is critical for clarity and enforceability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.