A loss portfolio transfer (LPT) is a financial reinsurance transaction in which loss obligations...
commutation agreement
A commutation agreement is an agreement between a ceding insurer and the reinsurer that provides for the valuation, payment, and complete discharge of all obligations between the parties under a particular reinsurance contract.
Additional Information
It is used if an insurer is withdrawing from underwriting a class of business.
Related Terms
Portfolio transfer refers to the cession of a book of business—for example, for an insurer...
