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Loss Portfolio Transfer Agreement
1. Parties: Identification of the transferring insurer (cedent) and the assuming reinsurer
2. Background: Context of the transaction, including description of the portfolio being transferred
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Transfer: Detailed description of the insurance portfolio being transferred, including covered policies and time periods
5. Transfer Premium: Financial terms including initial premium, payment terms, and any adjustments
6. Claims Handling and Administration: Procedures for handling claims, including authority levels and reporting requirements
7. Representations and Warranties: Standard and specific warranties regarding the portfolio and parties' capacity
8. Regulatory Compliance: Obligations regarding regulatory approvals and ongoing compliance requirements
9. Security and Collateral: Requirements for financial security or collateral arrangements
10. Reporting Requirements: Periodic reporting obligations and information sharing requirements
11. Term and Termination: Duration of the agreement and circumstances allowing early termination
12. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
13. Confidentiality: Provisions regarding confidential information and its protection
14. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Transition Services: Required when the cedent will provide ongoing administrative services during a transition period
2. Risk Sharing Arrangements: Used when parties agree to share certain risks or profits
3. Broker Involvement: Required when reinsurance brokers are involved in the transaction
4. Data Protection: Detailed section required when significant personal data is involved in the transfer
5. Adverse Development Cover: Optional protection against deterioration of the transferred portfolio
6. Currency Conversion: Required for international transfers involving multiple currencies
7. Tax Provisions: Detailed tax considerations when transfer has significant tax implications
1. Schedule A - Transferred Policies: Detailed list of insurance policies included in the transfer
2. Schedule B - Excluded Policies: List of specifically excluded policies or risks
3. Schedule C - Transfer Premium Calculation: Detailed methodology for calculating the transfer premium
4. Schedule D - Claims Handling Procedures: Detailed procedures and guidelines for claims handling
5. Schedule E - Reporting Templates: Standard formats for required periodic reports
6. Schedule F - Security Arrangements: Details of any collateral or security arrangements
7. Appendix 1 - Actuarial Report: Independent actuarial assessment of the portfolio
8. Appendix 2 - Due Diligence Findings: Summary of key due diligence findings
9. Appendix 3 - Regulatory Approvals: Copies of required regulatory approvals and conditions
Authors
Assumed Liabilities
Business Day
Cedent
Claims
Closing Date
Commencement Date
Covered Business
Cut-off Date
Danish FSA
Effective Date
Excluded Liabilities
Experience Account
IBNR
Initial Premium
Loss
Loss Adjustment Expenses
Loss Development
Loss Portfolio
Outstanding Loss Reserves
Parties
Policy
Portfolio
Premium Adjustment
Reinsurer
Regulatory Approvals
Security Interest
Transferred Business
Transfer Premium
Transition Period
Ultimate Net Loss
Unallocated Loss Adjustment Expenses
Underwriting Year
Valuation Date
Recitals
Definitions
Portfolio Transfer
Premium Payment
Claims Administration
Regulatory Compliance
Representations and Warranties
Conditions Precedent
Security and Collateral
Reporting and Accounts
Access to Records
Indemnification
Confidentiality
Data Protection
Force Majeure
Assignment
Term and Termination
Dispute Resolution
Governing Law
Notices
Amendments
Severability
Entire Agreement
Third Party Rights
Counterparts
Waiver
Further Assurance
Costs and Expenses
Set-off Rights
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