Definition of Reinsurance Facility:
The definition of Reinsurance Facility is: Two states, North Carolina and New Hampshire, use a residual market mechanism called reinsurance services. Insurance services are non-profit organizations, without legal personality, where auto insurance companies provide services. Once the policies expire, the insurance company can choose to manage the policies as part of its regular voluntary activities or transfer to the insurance or group. The insurance company has the right to transfer or assign one percent of its policy to the group. The premium for this part of the contract is sent to the pool, and then the insurance company collects damages and costs on the pool. Profits or losses are shared by state-licensed auto insurance companies.
Meaning of Reinsurance Facility: An alternative approach for policyholders who cannot obtain insurance in the voluntary market. Business premiums and losses incurred in this facility are combined and all insurance policies are distributed according to their voluntary market share. See also Outstanding Market.
Literal Meanings of Reinsurance Facility
Meanings of Facility:
Locations, equipment or supplies designed for a particular use.
Natural skills, ability to do or learn well and easily.
Sentences of Facility
Synonyms of Facility
provision, space, means, solution, potential, prerequisite, equipment, aptitude, talent, gift, flair, bent, skill, knack, finesse, genius