Automatic Reinsurance Limits Clause Samples
The Automatic Reinsurance Limits clause defines the maximum amount of risk or liability that a reinsurer will automatically accept from a ceding insurer without the need for individual case-by-case approval. In practice, this clause sets specific thresholds—such as a dollar amount or percentage of a policy—up to which the reinsurer is obligated to cover claims automatically, while any risk exceeding these limits requires separate negotiation or facultative reinsurance. Its core function is to streamline the reinsurance process, providing clarity and efficiency by establishing clear boundaries for automatic coverage and reducing administrative burdens for both parties.
Automatic Reinsurance Limits a) Reinsurer’s Share: [ ] Automatic Quota Share: [ ] Automatic Excess: [ ] [ ] [ ] Automatic Quota Share: [ ] Automatic Excess: [ ] [ ]
Automatic Reinsurance Limits. (Continued)
Automatic Reinsurance Limits a) Reinsurer’s Share: [_____]
Automatic Reinsurance Limits a) Reinsurer’s Share: Automatic Quota Share: [ ]% Automatic Excess: [ ]% Automatic Quota Share: [ ]% Automatic Excess: [ ]% Automatic Quota Share: [ ]% Automatic Excess: [ ]%
b) Ceding Company’s Retention: Automatic Quota Share: The Ceding Company will retain [ ]% of the first $[ ] up to their maximum per life retention limit. Automatic Excess: The Ceding Company retains [ ]. Automatic Quota Share: The Ceding Company will retain [ ]% of the first $[ ] up to their maximum per life retention limit. Automatic Excess: The Ceding Company retains [ ]. Automatic Quota Share: The Ceding Company will retain [ ]% of the first $[ ] Million up to their maximum per life retention limit. Automatic Excess: The Ceding Company retains [ ].
Automatic Reinsurance Limits a) Reinsurer’s Share: Automatic Quota Share: [ ] Automatic Excess: [ ] [ ]Effective January 1, 2023 through April 19, 2024 Automatic Quota Share: [ ] Automatic Excess: [ ] [ ]Effective November 21, 2020 through December 31, 2022Automatic Quota Share: [ ] Automatic Excess: [ ] [ ]
b) Ceding Company’s Retention: Automatic Quota Share: The Ceding Company will retain the [ ] of the first [ ] up to their maximum per life retention limit. Automatic Excess: The Ceding Company retains [ ]. [ ]. Automatic Quota Share: The Ceding Company will retain [ ] of the first [ ] up to their maximum per life retention limit. Automatic Excess: The Ceding Company retains [ ]. [ ]. Automatic Quota Share: The Ceding Company will retain [ ] of the first [ ] up to their maximum per life retention limit. Automatic Excess: The Ceding Company retains [ ]. [ ].
c) Automatic and Facultative Obligatory Binding Limits: Effective April 20, 2024 Effective January 1, 2023 through April 19, 2024 Effective November 21, 2020 through December 31, 2022
Automatic Reinsurance Limits