Definition of reinsurance ticket’
Ticket reinsurance is a notification made by an insurer that reveals various reinsurance contracts affected by claims and other information affecting the terms of the contract of reinsurance. Reinsurance tickets included in the item requirements of the reinsurance contract.
The penetration of the Reinsurance ticket’
Most insurers not engaged in the reinsurance tickets; they reflect the insurance companies’ business-to-business. The reinsurance contracts contain instructions when it comes to the ceding insurers and reinsurers to share the information with each other. The most important aspect of information sharing refers to the notification of the claim, as the ceding insurers to provide information about the lawsuits that have been filed and damages that may arise from the policies that the reinsurer is responsible for. In order to track which contracts of reinsurance have been affected on a particular day, the insurer will make a ticket of reinsurance in its daily report. Originally, this entry was in the form of a separate piece of paper, of course, to report to the insurer outlining the details; hence the name “reinsurance account”.
Although most of them are now electronic, reinsurance tickets to create a paper trail that can be used if the differences between the parties occur. If the assignment by the insurer and reinsurer to go to court in order to resolve the issue of demands or some other aspects of the reinsurance contract, reinsurance tickets can provide the preconditions that each party is aware of. Most of the reinsurance contracts indicate that the assignment by the insurer shall notify the reinsurer that a loss has occurred, without notice to the reinsurer is not obliged to act. The ceding company has a duty to ensure that the tickets are delivered.
Suppose, for example that the insurance company wants to keep 50% of any loss that it undergoes, and uses the broker to find a three-year contract of reinsurance to cover the other half. Broker can only be a one-year contract, and send copies of reinsurance contracts for an insurer. Two years into what he thinks was a three-year contract, the insurer makes a request that the reinsurers ‘ share in losses; reinsurers to deny the request. The insurer then sues a broker for failing to obtain reinsurance for the time period requested. In the course of the trial the insurer is found from reinsurance ticket stating that the period of reinsurance was for one year only, and the courts determine that the insurer would have been aware of the term if he had reviewed the agreement, when other claims have been filed.