That first part of the loss which is retained by the REINSURED. The REINSURER is then liable for the balance of the loss (up to the agreed limit) after deduction of that RETENTION.

Found in PROFIT COMMISSION clauses to provide that deficits arising in any year will be carried forward and offset against profit commission due on a subsequent year. Deficits may be carried forward to extinction or for a limited period, such as 3 or 5 years. In the latter case, any deficit remaining is then ignored in future calculations.

A premium paid at inception of the treaty, or in instalments during the treaty year, which is subject to adjustment at a later date. A deposit premium may also represent the minimum payable or the minimum premium required might be set at some other figure.

A claim recovered from reinsurers through the letter of credit system.

The United Kingdom Department of Trade and Industry which is responsible for regulation of the insurance industry in the UK.

Contracts written in the Lloyd’s Market that were deemed to include elements of more than one type of risk (e.g. both Marine and Non Marine risks or Aviation and Non Marine Risks). The LEADING UNDERWRITER would indicate on the SLIP the percentage split between the two classes.