Recapture Agreement Reinsurance
A provision of the termination (or approval) clause of a reinsurance contract stipulating that the reinsurer is liable for losses resulting from reinsured policies in force at the time of termination, as a result of events occurring after the date of termination, until their natural expiry (and often that the run-off cannot exceed twelve months from the date of termination). See cancellation or termination. (Editor`s note: Runoff is a word, if used as a noun, two words as a transitive verb and separated as a composite adjective, for example.B. a second round of the current insurance activity takes place on a run-off basis. When an insurance company covers a new policy, it undertakes to compensate the policyholder against a premium. This exemption is a liability and the insurer is responsible for covering the loss of rights filed. There are regulatory and financial limits to the risk to which an insurer may be exposed. As part of the repayment, withdrawals and credits are applied, whether it is a mutual debt, since the withdrawals and credits are limited to those resulting from the same operation or contract and the purpose of the repayment is to determine the amount that the party owes or owes under this contract or this transaction. The term should be compared to set-off, which consists of reducing the amount that one party owes to another party under an agreement or transaction to determine the amount that may be due to the first party under another contract or transaction. verse or from the first part. See also counterclaim and set-off.