Glossary

Looking for the right term then try the glossary:

Term Definition Legal instruments

major facultative reinsurance contract

01/07/2016

THIS DEFINITION ONLY APPLIES TO THE INSURANCE COMPANY - REPORTING PART

means a contract under which general insurance business has been ceded by the firm on a facultative basis:

(1) under which the total amount of premiums payable to any reinsurer (being a major facultative reinsurer) is equal to not less than 0.5% of gross premiums receivable by the firm in respect of general insurance business; or

(2) in relation to which, in respect of any reinsurer (being a major facultative reinsurer) the aggregate of amounts in 4.22(1)(d) and (f) exceeds the sum of £4,000 and 1% of the firm’s liabilities arising from its general insurance business, net of reinsurance ceded.