Compensation Glossary

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Automatic Reinsurance Treaty

A reinsurance agreement in which the reinsurer agrees, for a stipulated type of risk, to accept each risk or a portion of each risk submitted by the ceding company, up to a certain limit, provided the ceding company insures up to its usual retention limit. In this agreement, the ceding company assumes full underwriting responsibility for all cases reinsured.

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Automatic Premium Loan (APL)

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Automatic Step Rate

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