Automatic Reinsurance
Allows the negotiation and evaluation of the Portfolio of an Insurance Company's portfolio by line of business in a global manner, Automatic Back-up is granted to all the risks assumed by the Company, according to previously established conditions.
Proportional
The Company agrees to cede and the Reinsurer agrees to accept a participation in the risks assumed by the Company as previously agreed, this participation being established under a fixed percentage.
The Company agrees to Cede and the Reinsurer agrees to accept a participation in the risks assumed by the Company, as previously agreed, established under a fixed percentage, establishing a line of Retention (Retention Plenum), portion that is assumed by the Company, and a number of Plenums of Retention (Plenum of Retention), and a number of Plenums (surplus) assumed by the participating Reinsurer.
Not Proportional
An amount is established in advance for which the Company is committed to absorb all losses occurring below such established amount. The Reinsurer shall participate in excess of the amount indicated above, up to the Capacity established by the Reinsurer in the negotiation of the Contract.
They may be:
-Excess Loss per Risk: operates individually for each loss occurring in particular, provided that it exceeds the amount assumed by the Company called Priority.
-Catastrophic Excess of Loss: operates when two or more events are involved (catastrophic), provided that they exceed the amount assumed by the Company, called Priority.
It is a Contract that combines the two Coverages offered in the Excess of Loss (Per Risk and Catastrophic).