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Loss Portfolio Transfer Agreement
"I need a Loss Portfolio Transfer Agreement to transfer our Canadian property insurance portfolio, valued at approximately CAD 50 million, with an effective date of March 1, 2025, including provisions for a 6-month transition period where we'll continue handling claims administration."
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You keep IP ownership of your information
1. Parties: Identifies the transferring insurer (cedent) and accepting insurer (reinsurer)
2. Background: Explains the context and purpose of the portfolio transfer
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Transfer: Describes the insurance portfolio being transferred and any exclusions
5. Consideration and Payment Terms: Details the transfer price, payment schedule, and any adjustments
6. Effective Date and Duration: Specifies when the transfer becomes effective and its duration
7. Claims Administration: Outlines responsibilities and procedures for handling claims
8. Representations and Warranties: Standard and specific warranties regarding the portfolio and parties' authority
9. Regulatory Compliance: Addresses compliance with applicable insurance regulations and required approvals
10. Data Protection and Confidentiality: Provisions for handling confidential information and personal data
11. Dispute Resolution: Procedures for resolving disputes between parties
12. Governing Law and Jurisdiction: Specifies applicable law and courts
13. General Provisions: Standard boilerplate clauses including notices, amendments, etc.
14. Execution: Signature blocks and execution formalities
1. Transition Services: Required if the cedent will provide operational support during a transition period
2. Security Arrangements: Include if collateral or other security is required
3. Broker Provisions: Required if reinsurance brokers are involved in the transaction
4. Sanctions Compliance: Include for international portfolios or parties
5. Tax Provisions: Required if specific tax arrangements or implications need to be addressed
6. Retrocession Arrangements: Include if the reinsurer will retrocede portions of the portfolio
7. Service Level Requirements: Include if specific performance standards for claims handling are required
1. Schedule A - Portfolio Description: Detailed description of policies being transferred including limits, retention levels, and exclusions
2. Schedule B - Transfer Price Calculation: Methodology and calculations for determining the transfer price
3. Schedule C - Claims Handling Procedures: Detailed procedures for claims administration and reporting
4. Schedule D - Required Regulatory Approvals: List of regulatory approvals needed and status
5. Schedule E - Actuarial Report: Summary of actuarial analysis and assumptions
6. Schedule F - Data Transfer Specifications: Technical requirements for transfer of policy and claims data
7. Schedule G - Forms of Notices: Templates for required notices to policyholders or regulators
8. Appendix 1 - Historical Loss Development: Analysis of historical loss development for the portfolio
9. Appendix 2 - Risk Transfer Analysis: Documentation demonstrating risk transfer requirements are met
Authors
Insurance
Reinsurance
Financial Services
Risk Management
Professional Services
Healthcare Insurance
Property Insurance
Casualty Insurance
Marine Insurance
Aviation Insurance
Workers Compensation Insurance
Environmental Insurance
Legal
Risk Management
Finance
Actuarial
Compliance
Claims
Underwriting
Operations
Regulatory Affairs
Treasury
Portfolio Management
Due Diligence
Chief Risk Officer
Chief Financial Officer
Chief Actuary
Reinsurance Manager
Claims Director
Compliance Officer
Legal Counsel
Portfolio Manager
Underwriting Director
Insurance Operations Manager
Risk Analyst
Actuarial Manager
Regulatory Affairs Director
Treasury Manager
Due Diligence Specialist
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