Premium Transactions

When the system receives a premium transaction, it determines which assumed ceding contracts are applicable based on cedant, risk type, and coverage. Afterwards, it allocates the premium for the applicable assumed ceding contracts based on the technical accounting method of the contract generated. Each premium transaction placed in the book-of-business treaty triggers an evaluation of applicable retrocession contracts. The system determines which retrocession contracts are applicable based on cedant, risk type and coverage and then allocates the premium for the applicable retrocession contracts based on the technical accounting method of the contract. The system also calculates any overrider or brokerage commission, which may be applicable, depending on how the contracts were defined.