What is the securing contract?
Most governments limit the size and number of insurance policies that the insurance company can sell on the basis of the capital assets of this company. This will make sure that they will be able to pay any claims, their clients. If the insurance company reaches the limit, it must either stop selling insurance contracts or must sell part of its risk of the securing company. The securing agreement is an agreement between the insurer and the provider in which the provider agrees to take over all or part of the risk to a particular type or size of the insurance contract.
In 1842, the main fire in Hamburg, Germany, destroyed the local insurance industry. It was very obvious that traditional insurance companies were unable to master significant, catastrophic events and the first locking company started. Society now operates around the world. Two of the largest are Munich Re based in Munich, Germany; and the Swiss Re in Zurich, Switzerland.
The insurance is insurance for insurance companies. Is also aboutmarked as a clutch of the highest loss. The original insurance company can be referred to many names: ceded side, original or primary insurer or company with direct writing.
The securing contract can take different forms. In some cases, the Company concludes with the risk of any insurance contract that exceeds the limit set for the original insurer. For example, specific companies may only be allowed to subscribe to maximum insurance of $ 1 million in the US (USD), but their customer requires USD $ 3 million policy. The principle can be written in a hedging company that clasping another $ 2 million.
In other cases, a securing contract can be secured as a proportional policy. As part of this plan, the hedging company agrees to take over a certain percentage of the company's direct risk for all POCITICS or for a specific type of politics. In return, the provider will receive this percentage of premiums paid for these policies, which is less cost of getting business. Writing costs include commissions paid to the agent and overhead costs to create a policy.
The contract can also be written so that the securing company only enters if the risk exceeds the predetermined amount. Such a lawyer is called informal securing. The type of securing contract in which the company decides to engage is determined by the type of written policies and the size and assets of the primary insurer.
The Treaty of Secure is also the name of the secret agreement between Russia and Germany mediated by Bismarc in 1887. The Bismarc primary goal was to protect German security from the French attack. In this three-year treaty, Germany and Russia agreed to remain neutral to each other if each party involved in war with any third nation with the exception of France and Austria-Hungary. By exchange, Germany recognized Russian demands in the Balkans and agreed to support its control over the Black Sea. The contract was allowed to expire after Bismarck was removed from the office.