Reinsurance Business Essays - Types Of Insurance, Reinsurance

Reinsurance Business QUOTA SHARE REINSURANCE AGREEMENT DWVD NO. 900804 for BASIC COLLEGE ACCIDENT AND SICKNESS MEDICAL EXPENSE INSURANCE (hereinafter referred to as the Agreement) made and entered into by GERBER LIFE INSURANCE COMPANY White Plains, NY (hereinafter referred to as the Company) and PHOENIX HOME LIFE MUTUAL INSURANCE COMPANY Enfield, CT (hereinafter referred to as the Reinsurer) EFFECTIVE: January 1, 1999 - December 31, 1999 Table of Contents ARTICLE I ? PARTIES TO AGREEMENT 1 ARTICLE II ? BASIS OF REINSURANCE 2 ARTICLE III ? RETENTION AND LIMIT 3 ARTICLE IV ? INURING REINSURANCE 4 ARTICLE V ? FACULTATIVE REINSURANCE 5 ARTICLE VI - EXCLUSIONS 6 ARTICLE VII ? EFFECTIVE DATE AND DURATION OF AGREEMENT 7 ARTICLE VIII ? REINSURANCE PREMIUMS 8 ARTICLE IX ? PREMIUM REPORTS 9 ARTICLE X ? CEDING ALLOWANCE/EXPENSES 10 ARTICLE XI ? CURRENCY 11 ARTICLE XII ? CLAIMS NOTIFICATION 12 ARTICLE XIII ? CLAIMS SETTLEMENT AND AUDIT 14 ARTICLE XIV ? EXTRA CONTRACTUAL OBLIGATIONS 15 ARTICLE XV ? SUBROGATION 16 ARTICLE XVI ? COMMUTATION 17 ARTICLE XVII ? CLAIMS FUND 18 ARTICLE XVIII ? OFFSET 19 ARTICLE XIX ? TERRITORY 20 ARTICLE XX ? OVERSIGHTS 21 ARTICLE XXI ? ACCESS TO RECORDS 22 ARTICLE XXII ? INSOLVENCY 23 ARTICLE XXIII ? ARBITRATION 24 ARTICLE XXIV - CONTROLLING LAW 25 ARTICLE XXV ? SEVERABILITY 26 ARTICLE XXVI ? UNAUTHORIZED REINSURERS 27 ARTICLE XXVII ? TAXES 29 ARTICLE XXVIII ? FEDERAL EXCISE TAX 30 ARTICLE XXIX ? CONFIDENTIALITY 31 ARTICLE XXX ? ENTIRE AGREEMENT 32 ARTICLE XXXI ? INTERMEDIARY 33 ARTICLE XXXII ? EXECUTION 34 ARTICLE I ? PARTIES TO AGREEMENT This Agreement is solely between the Company and the Reinsurer and the performance of obligations of each party under this Agreement shall be rendered solely to the other party. In no instances shall anyone other than the Company or the Reinsurer have any rights under this Agreement except recognizing the Company has the sole responsibility for the evaluation and appointment of the Underwriting Manager, Managed Care Concepts of Delaware, Inc. (MCCI). Further, it is agreed that Associated Accident and Health Reinsurance Underwriters (AAHRU), a participating Reinsurer, is deemed to be the Lead Reinsurer. In that capacity, any and all actions of the Lead Reinsurer shall be made in the best interest of this Agreement and binding upon the other reinsurers. Should the Company appoint a new Underwriting Manager, the Reinsurer must approve any change in the Underwriting Manager, otherwise the Reinsurer has the right to cancel at the time of change. This Agreement shall be binding upon the parties, their heirs, and successors, if any. ARTICLE II ? BASIS OF REINSURANCE On and after the effective date of this Agreement, the Company shall cede and the Reinsurer shall accept as reinsurance, a Quota Share portion, as shown within ARTICLE XXXII ? EXECUTION, of the liability on policies, binders, contracts or agreements of insurance, hereinafter referred to as policies, issued or renewed by the Company on or after the effective date of this Agreement and underwritten for and on behalf of the Company by the Underwriting Manager and classified as Basic College Accident and Sickness Medical Expense Insurance, as described below: Basic College Accident and Sickness Medical Expense Insurance: Excess of all other valid and collectible insurance issued to the eligible students (various classes including, domestic undergraduate, domestic graduate and foreign students) and their eligible dependents. If the eligible student does not have primary insurance, this plan will be primary. Some plans may be written on a primary basis for which benefits will then be coordinated with any other plan in which the student is covered as a dependent. Premiums must be paid before insurance is in force and valid. The maximum benefit per individual covered insured is $500,000. ARTICLE III ? RETENTION AND LIMIT The Reinsurer agrees to accept a fixed proportion of 85% of the first $500,000 per person per risk for all business subject to this Agreement. The Company agrees to retain for its own account 15% of the first $500,000 per person per risk for business subject to this Agreement. ARTICLE IV ? INURING REINSURANCE Inuring Reinsurance ? The Company and the Reinsurer agree to purchase excess of loss reinsurance that insures to the benefit of all basic quota share participants of this treaty for all per person risks that exceed $500,000. The purchase price and reinsurance security to be approved by the Company and Lead Reinsurer. Should acceptable reinsurance not be available, the Company and Lead Reinsurer will revise this Agreement accordingly. ARTICLE V ? FACULTATIVE REINSURANCE For business that does not meet