Online method for binding automatic type reinsurance

A process for a reinsurer to facilitate submitting bordereaux using a computer system, each bordereau including a listing of insurance policies to be covered under a facultative automatic reinsurance agreement, said process comprising the steps of:

• entering into an automatic reinsurance agreement between a cedant and a reinsurer wherein the reinsurer agrees to automatically reinsure insurance policies associated with the cedant that satisfy a reinsurance criteria, said automatic reinsurance agreement establishing said reinsurance criteria, said reinsurance criteria describing at least one of types of risks and classes of business to be automatically reinsured under said reinsurance agreement without further underwriting by said reinsurer;
• entering said reinsurance criteria into a database using said computer system;
• providing said cedant access to said database;
• instructing said cedant to enter into said database, terms for each insurance policy said cedant intends to submit for coverage on a bordereau under said automatic reinsurance agreement, wherein said cedant submits an initial bordereau using said computer system including each policy submitted for coverage under said automatic reinsurance agreement;
• comparing said terms entered by said cedant for each insurance policy included on the initial bordereau to said reinsurance criteria;
• if in said comparison step, said terms comply with said reinsurance criteria, permitting said policy to be incorporated by said system on a final bordereau;
• if in said comparison step, said terms do not comply with said reinsurance criteria, said computer system sending a message to said cedant noting the terms that do not comply with said reinsurance criteria and instructing said cedant to correct any errors in said terms entered in said database or submit a request that said reinsurer cover said policy under said automatic reinsurance agreement despite the non-compliance of said terms with said reinsurance criteria.

A computer system for maintaining and administering a facultative automatic type reinsurance agreement between a cedant and a reinsurer and pursuant to which reinsurance is provided for individual insurance policies, said computer system comprising:

• a server including a processor;
• a database connected to said processor for storing data;
• and
• a program executable on said processor:
• to collect reinsurance criteria established by said reinsurance agreement and store said reinsurance criteria in said database, said reinsurance agreement previously entered into between said cedant and said reinsurer wherein the reinsurer agrees to automatically reinsure insurance policies associated with the cedant that satisfy said reinsurance criteria, said reinsurance criteria describing at least one of types of risks and classes of business to be automatically reinsured under said reinsurance agreement without further underwriting by said reinsurer;
• to collect insurance policy data including policy and ceding terms regarding each individual insurance policy for which coverage is sought by said cedant under said reinsurance agreement and store said policy data in said database;
• to generate an initial report including each insurance policy for which coverage is sought by said cedant under said reinsurance agreement;
• to compare said policy and ceding terms for each insurance policy included on the initial report to said reinsurance criteria and determine if said policy and ceding terms comply with said reinsurance criteria;
• and
• to generate a final report including each insurance policy having policy and ceding terms that comply with said reinsurance criteria.

A process for preparing a bordereau for submission to a reinsurer using a computer system, said bordereau comprising a listing of individual insurance policies to be covered under a facultative automatic reinsurance agreement, said process comprising the steps of:

• providing an automatic reinsurance agreement entered into between a cedant and said reinsurer wherein said reinsurer agrees to automatically reinsure insurance policies associated with said cedant that satisfy a reinsurance criteria, said automatic reinsurance agreement including said reinsurance criteria, said reinsurance criteria describing at least one of types of risks and classes of business to be automatically reinsured under said reinsurance agreement without further underwriting by said reinsurer;
• storing said reinsurance criteria in a database coupled to said computer system;
• accessing said database using said computer system;
• entering into said database, policy and ceding terms for each insurance policy intended by said cedant to be included in said listing on said bordereau;
• causing the computer system to compare said policy and ceding terms entered into said database for each insurance policy to said reinsurance criteria to determine if said policy and ceding terms comply with said reinsurance criteria;
• and
• generating a bordereau using said computer system including a listing of each of said insurance policies in which said policy and ceding terms comply with said reinsurance criteria.