REINSURANCE FORM THE PERSPECTIVE OF PROPERTY INSURANCE CONTRACT

The most significant means by which insurance markets operate to spread risks beyond like risk pools is reinsurance. The reinsurance operation has the advantage that the original insured can increase his financial capacity in order to cover the risks that he cannot bear alone. The risks are theref...

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Main Author: Dănilă Ștefan MATEI
Format: Article
Language:English
Published: Nicolae Titulescu University Publishing House 2018-05-01
Series:Challenges of the Knowledge Society
Subjects:
Online Access:http://cks.univnt.ro/uploads/cks_2018_articles/index.php?dir=2_private_law%2F&download=CKS_2018_private_law_014.pdf
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author Dănilă Ștefan MATEI
author_facet Dănilă Ștefan MATEI
author_sort Dănilă Ștefan MATEI
collection DOAJ
description The most significant means by which insurance markets operate to spread risks beyond like risk pools is reinsurance. The reinsurance operation has the advantage that the original insured can increase his financial capacity in order to cover the risks that he cannot bear alone. The risks are therefore spread and the danger of insolvency or of decreasing the financial capacities either disappears or is reduced. The reinsurance involves a new insurance, carried out by a new policy, for the same original insured risk, for the purpose of compensating the insured persons for the previously concluded insurances. Both contracts exist at the same time. By reinsurance the reinsurer receives reinsurance premiums, in return for which it contributes, according to the obligations assumed, to bearing the indemnities that the reinsured pays on the occurrence of the risk subject to reinsurance; the reinsured cedes reinsurance premiums, in return for which the reinsurer contributes, according to the obligations assumed, to bearing the indemnities that the reinsured pays on the occurrence of the risk subject to reinsurance. The reinsurance does not terminate the insurer’s obligations and does not establish any legal relationship between the insured and the reinsurer. This paper offers an introduction to key features of reinsurance, and some of the sources of complexity in the legal issues that arise
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institution Kabale University
issn 2068-7796
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publisher Nicolae Titulescu University Publishing House
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spelling doaj-art-019d59044db14e95ac660681c4384e6d2024-12-02T03:36:30ZengNicolae Titulescu University Publishing HouseChallenges of the Knowledge Society2068-77962068-77962018-05-0112-262269REINSURANCE FORM THE PERSPECTIVE OF PROPERTY INSURANCE CONTRACTDănilă Ștefan MATEI0PhD Candidate, Faculty of Law, "Nicolae Titulescu" University, Bucharest (e-mail: mstdanila@yahoo.com) The most significant means by which insurance markets operate to spread risks beyond like risk pools is reinsurance. The reinsurance operation has the advantage that the original insured can increase his financial capacity in order to cover the risks that he cannot bear alone. The risks are therefore spread and the danger of insolvency or of decreasing the financial capacities either disappears or is reduced. The reinsurance involves a new insurance, carried out by a new policy, for the same original insured risk, for the purpose of compensating the insured persons for the previously concluded insurances. Both contracts exist at the same time. By reinsurance the reinsurer receives reinsurance premiums, in return for which it contributes, according to the obligations assumed, to bearing the indemnities that the reinsured pays on the occurrence of the risk subject to reinsurance; the reinsured cedes reinsurance premiums, in return for which the reinsurer contributes, according to the obligations assumed, to bearing the indemnities that the reinsured pays on the occurrence of the risk subject to reinsurance. The reinsurance does not terminate the insurer’s obligations and does not establish any legal relationship between the insured and the reinsurer. This paper offers an introduction to key features of reinsurance, and some of the sources of complexity in the legal issues that arisehttp://cks.univnt.ro/uploads/cks_2018_articles/index.php?dir=2_private_law%2F&download=CKS_2018_private_law_014.pdfreinsurancepropertyriskaggregateinsuranceretrocessiontreatyproportionalfacultative
spellingShingle Dănilă Ștefan MATEI
REINSURANCE FORM THE PERSPECTIVE OF PROPERTY INSURANCE CONTRACT
Challenges of the Knowledge Society
reinsurance
property
risk
aggregate
insurance
retrocession
treaty
proportional
facultative
title REINSURANCE FORM THE PERSPECTIVE OF PROPERTY INSURANCE CONTRACT
title_full REINSURANCE FORM THE PERSPECTIVE OF PROPERTY INSURANCE CONTRACT
title_fullStr REINSURANCE FORM THE PERSPECTIVE OF PROPERTY INSURANCE CONTRACT
title_full_unstemmed REINSURANCE FORM THE PERSPECTIVE OF PROPERTY INSURANCE CONTRACT
title_short REINSURANCE FORM THE PERSPECTIVE OF PROPERTY INSURANCE CONTRACT
title_sort reinsurance form the perspective of property insurance contract
topic reinsurance
property
risk
aggregate
insurance
retrocession
treaty
proportional
facultative
url http://cks.univnt.ro/uploads/cks_2018_articles/index.php?dir=2_private_law%2F&download=CKS_2018_private_law_014.pdf
work_keys_str_mv AT danilastefanmatei reinsuranceformtheperspectiveofpropertyinsurancecontract