The Risk of Payment of Insurance Benefits or Amounts Covered under Reinsurance Contracts

Abstract

The article examines a risk and an insured event under reinsurance contracts. Due to the fact that the Russian legislation uses ambiguous terms, there is a question, what an insured event under reinsurance contracts is. Is it an actual payment of the insurance benefit by the reinsured or the emergence of the obligation of the reinsured to provide the insurance benefit? It is considered more accurate to treat the emergence of the obligation of the reinsured to provide the insurance benefit as the insured event under the reinsurance contracts. This definition of the insured event in reinsurance makes the payment of the insurance benefits by the reinsurer directly to the insured under the principal insurance contract legitimate (possible).

Keywords:

risk in reinsurance, Law of the Russian Federation “On the Organization of Insurance in the Russian Federation”, reinsurance, reinsurance contract, insured risk, insured event, insurance benefit, amount covered