Creates a reinsurance cession for the specified policy.
A reinsurance cession is a contract between a primary insurer (cedent) and a reinsurer that is applied to a particular risk, e.g. a single location or policy. A policy cession defines the terms of agreement by which the reinsurer (a facultative reinsurer or treaty) assumes a portion of the risk for a single policy.
Multiple reinsurance cessions can be applied to the same policy as reinsurance layers. Each reinsurance cession is defined by a limit (layerAmount
), an attachment point (excessAmount
), an inuring priority (priority
), and participation percentage (percentReinsurance
). There is no limit to the number of reinsurance cessions that can be applied to a policy, but the sum of the percentReinsurance
values cannot exceed 100%.
Depending on its type
(Facultative
or Treaty
), the policy cession may cede risk to a facultative reinsurer or surplus share treaty.