UNDERWRITER

The definition of the amount of the REINSURED's loss which is eligible for recovery under the terms of an EXCESS OF LOSS TREATY. The amount is usually defined as all the payments made in respect of the claim (including loss adjustment expenses but excluding the reinsured's office expenses) less recoveries by way of salvage, etc. A specific provision allows claims to be settled to the reinsured before all recoveries have been made and the Ultimate Net Loss is finally determined. See also NET RETAINED LINES clause.

EXCESS OF LOSS treaties which protect the reinsured against an accumulation, arising out of one event, of retained losses under different classes of business, such as a storm that may cause property, marine, aviation and motor losses.

See UMBRELLA COVERS

Layers of EXCESS OF LOSS coverage that are at a lower level and which would therefore respond to losses before the contract in question.

An Insurer. Either an individual or a company who subscribes to a policy or contract of insurance or reinsurance. Although a NAME at Lloyd's is an Underwriter, the Name will invariably delegate underwriting authority to a Lloyd's Managing Agency to conduct business on their behalf.

An official of an insurance or reinsurance company or of a Lloyd's Syndicate who is empowered to accept risks on behalf of such organisations.

A Lloyd's underwriting agency manages the affairs of a Lloyd's syndicate. See Also NAMES AGENT.

A company underwriting agency accepts business on behalf of its principal, within the limits set down in the agency agreement.

The year of the inception of a risk.

A method of accounting to a proportional treaty whereby all premiums and losses relating to an UNDERWRITING YEAR are accounted to that year regardless as to when such losses arise or when such premiums and losses are paid.

That part of the premium applicable to the unexpired portion of the policy.

See PREMIUM RESERVE DEPOSIT

An amount set aside in the accounts of an insurer or reinsurer that represents the amount of premium applicable to the unexpired portion of the policy.

See UNEARNED PREMIUM RESERVE

ULTIMATE NET LOSS

See INSOLVENCY