This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1920 Excerpt: ...and valuations, including all risks (here follows an enumeration of the routes, locations, and conveyances covered) and shall cover the interest until safely delivered at final point of destination in the interior or elsewhere. The purpose of this clause is such as to make the judgment and acts of the original insurer, ...
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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1920 Excerpt: ...and valuations, including all risks (here follows an enumeration of the routes, locations, and conveyances covered) and shall cover the interest until safely delivered at final point of destination in the interior or elsewhere. The purpose of this clause is such as to make the judgment and acts of the original insurer, except as otherwise provided, binding upon the reinsurer. The clause, however, is supplemented with other sections defining the amount of the coverage, the commencement and duration of the reinsurer's liability, the conditions under which the original insurer may reduce his ordinary retained line, the manner of making declarations, alterations, and cancellations, the method and extent of making deposits by the reinsurer for the performance of obligations under the agreement, the rendering of periodic accounts2 by the original insurer to the reinsurer, and the classes of business, if any, which the original underwriter may exclude from the agreement. Settlement of premiums, commissions, and expenses.--Where the reinsurance is based on similar terms and conditions, it is advantageous to also have the original rates apply less a discount which has for its pui'pose the offsetting of commissions, taxes, license fees, discounts, rebates, and returns, and other expenses incurred by the original insurer. It is also customary for the reinsurer to make a further allowance of a stipulated percentage (a contingent commission) on the annual net profits, and the method of calculating the same is set forth in minute detail. Where the reinsurance is not based on similar terms and conditions the original underwriter is also compensated for those perils which he himself assumed. Moreover, in the majority of excess reinsurances it is customary to use rates diff...
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