What is pro rata reinsurance?
What is pro rata reinsurance?
Pro Rata Reinsurance — the reinsurer receives a percentage of premium and pays a proportional share of losses, above the ceding company’s retention.
What is reinsurance margin?
Reinsurer’s Margin — the “profit and administration” factor of the reinsurer, generally calculated on gross cession.
What is combined ratio in insurance?
A combined ratio (CR) is the measure of underwriting profitability in insurance, calculated using the sum of incurred losses and expenses divided by earned premiums. Insurers can have an underwriting loss (a CR of more than 100 percent) but still be profitable because of investment income levels.
What is reinsurance brokerage?
reinsurance broker means an insurance broker who, for remuneration, arranges reinsurance for direct insurers with insurance and reinsurance companies.
Is pro-rata the same as quota share?
A quota share treaty is a pro-rata reinsurance contract in which the insurer and reinsurer share premiums and losses according to a fixed percentage. Quota share reinsurance allows an insurer to retain some risk and premium while sharing the rest with an insurer up to a predetermined maximum coverage.
Who is responsible for the reinsurance fee?
Fully Insured Plan— The issuer is responsible for the Reinsurance Fee. In a state-operated program, the state may collect fully insured market contributions within its state or request that HHS do so on its behalf. When HHS is operating the program on behalf of a state, HHS will collect the contributions from the fully insured market.
Is Cobra covered under the reinsurance fee?
Yes; the Reinsurance Fee is based on “covered lives,” which includes all individuals covered under the plan or policy. Therefore, to the extent that COBRA continuation coverage is provided for a plan or policy that is subject to the fee, COBRA qualified beneficiaries are counted.
What is the difference between the PCORI fee and the reinsurance fee?
While the PCORI Fee and the Reinsurance Fee are both calculated based on the number of “covered lives” under a plan and use similar methodologies for counting those lives, there are significant differences between the two fees, such as the amount, due date, payment method and treatment of individuals covered by retiree medical plans.
Can a plan sponsor recover the reinsurance fee through plan contributions?
If properly structured; note that if the plan is subject to ERISA, use caution to avoid paying the PCORI Fee from plan assets (e.g., salary reduction contributions). Yes; nothing in the PPACA or regulations prevents a plan sponsor from recovering the Reinsurance Fee through increases in participant contributions.
