Glossary

Assumed reinsurance refers to insurance accepted from another insurer—for example, an admitted (policy-issuing) company.

In the context of self-insurance, assumed risk is risk retained by an insured.

Assumption refers to the amount of risk accepted by a reinsurer.

An assumption of liability agreement is a separate agreement between a company designated as the reinsurer and a policy-issuing company entered into for the benefit of an insured.

An assumption of liability endorsement is added to an insurance policy to provide that, in the event of the insurance company's insolvency, the amount of any loss that would have been recovered from the reinsurer by the insurance company will be paid instead directly to the policyholder by the reinsurer.

Assumption of risk is based on the maxim " volenti non fit injuria " ("to a willing person, injury is not done").

Assumption of the risk doctrine is a common law defense that has been used to pass the responsibility for loss or injury onto the injured party by asserting that the individual had knowledge and understanding of the hazards involved in the undertaking and is therefore not entitled to recovery.

Assurance is a British term meaning "insurance."

Assured is a British term meaning "insured."

Assurer is a British term meaning an insurer or underwriter, depending on context.