reinsurance

A contract by which an insurer procures a third person to insure him against loss or liability by reason of original insurance. A contract that one insurer makes with another to protect the latter from a risk already assumed. It binds the reinsurer to pay to the reinsured the whole loss sustained in respect to the subject of the insurance to the extent to which he is reinsured.

Also the substitution, with the consent of the insured, of a second insurer for the first, so that the original insurer is released.

An agreement to indemnify the assured, partially or altogether, against a risk assumed by it in policy issued to third party. Great American Ins. Co. v. Fireman's Fund Ins. Co., C.A.N.Y., 481 F.2d 948, 950.

A contract that one insurer makes with another to protect the first insurer from a risk he has already assumed. McDonough Const. Corp. v. Pan Am. Sur. Co., Fla.App., 190 So.2d 617, 619

@ reinsurance treaty

A bilateral contract containing mutual covenants which codify the ongoing process of one insurance company's transfer of risk to another. Fortress Re, Inc. v. Jefferson Ins. Co. of New York, D.C.N.C., 465 F.Supp. 333, 336

+ reinsurance

Insurance of an insurer; a contract by which an insurer procures a third person (usually another insurance company) to insure it against loss or liability, or a portion of such, by reason of the original insurance.

@ reinsured

An insurer who is insured against loss under its policies

@ reinsurer

An insurance carrier which insures insurers

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