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Glossary of Terms

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From The Glossary »

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Reciprocity:

An arrangement whereby reinsurances are placed one against another so that a ceding company will only place a share of its business with a reinsurer who is willing to provide a similar share of its own business. Reciprocity is normally confined to fire proportional business and is occasionally based on an equivalent profit exchange rather than on premium income.
More Definitions »

 

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