When the financial risk is too much for your company to handle, what will you do? A lot of people would probably tell you to stop your business. However, only a few know that the only way to do it right is to have it ceded and transferred to a reinsurance company. Ceding a portion of the company’s obligation to a reinsurer requires trust and conviction that the other party would pay the claims it accepts. But more than that, it demands your business to put such an arrangement into writing. Be apprised of the benefits that our printable statement templates and examples can provide to your insurance business today. Take a tour of this article and get a template you need.
9+ Cession Statement Templates in Google Docs | Word | Pages | PDF
1. Statement of Work Template
When a vendor offers his/her services to a client, he/she needs to draft a statement of work. This document provides specific activities, deliverables, and timelines that a vendor should accomplish. But from an insurance standpoint, this Statement of Work Template can also be used to draft a cession statement to specify the obligations a reinsurer must carry out for the insurer. If you need this template today, consider downloading it on your personal computer or macOS device.
2. Cession of Priority of Rank Agreement Template
This Cession of Priority of Rank Agreement Template is customarily used in securing the real estate business. However, this type of template can also be utilized to express agreements for securities over the insurance company, not to mention the fear of experiencing financial losses and damages. If you’re interested in this template, you may download and edit it now using Google Docs, MS Word, and Apple Pages.
3. Mission Statement Template
In its most basic usage and definition, a mission statement provides a well-expressed and well-articulated statement that tackles primarily why a particular business exists. In the same sense, this Mission Statement Template could help you draft and convey a cession statement for your insurance business. Get a copy of this template to start writing one today.
5 Steps to Create a Cession Statement
Step 1: Make an Arrangement
More often than not, insurance companies cannot handle more significant risks on their own. These risks need to be transferred to a reinsurer to ensure that the business could still run and survive. With that, the first thing that you need to do is to make an arrangement with the reinsurance company. It would allow you to transfer a portion of the company’s obligations and the risks. In return, the accepting company (reinsurer) acquires a premium and pays the claim for what it undertakes from your business.
Step 2: Clearly Define the Obligations
An insurance company can only manage its overall financial risk exposure when it transfers a part of it to a reinsurer. Hence, a cession statement serves as a document that explains and defines the clear-cut obligations of both parties. The reinsurer must have a clear and logical layout of the duties before it even takes the risk from your business. One way to do that is by defining all of them clearly in your cession statement.
Step 3: Keep it Simple Yet Specific
Another thing to keep in mind is you need to make your cession statement as specific and straightforward as possible. When you write an arrangement vaguely, the other party might interpret it differently. Miscommunication usually leads to disintegrations and delays. If you can express and explain your objectives and obligations in a precise and specific manner, the better.
Step 4: Get a Template
It gives more than just an assurance when we have a template or two with us to help us draft a cession statement. Statement documents often need a longer time, especially when you have to create them from scratch. Thus, diverse types of statement templates and examples are provided for you above. They are all user-friendly and print-ready. All you have to do is download and edit them in your most preferred file format.
Step 5: Update if Necessary
If certain adjustments or changes arise, you and your reinsurer must update the arrangement. Make sure to stipulate the updates in your cession statement document as soon as possible. Just like in an income statement, everything should be accurate and updated.
4. Legal Statement Template
A legal statement is a document that is essential to almost all legal cases and can be used for all legal purposes. Cession statements are legally-binding agreements between an insurer and a reinsurer. Hence, this Legal Statement Template is relevant and vital for you to download. Secure a copy now!
5. Settlement Statement Template
Let this Settlement Statement Template helps you layout and summarize the fees, charges, and costs that your reinsurer can possibly face as it accepts the risks. You may edit it using Google Docs, MS Word, and Apple Pages file formats. Don’t miss out on this opportunity. Download now to get started!
6. Simple Sworn Statement Template
When things don’t go according to your plan between you and your reinsurer, this Simple Sworn Statement Template can help your reinsurer draft a pertinent statement letter or document you might need in a legal proceeding. It is readily available in A4 and US print sizes, perfect for commercial and personal printing. Download now to start out!
7. Capability Statement Template
If you’re looking for a statement template to encourage a reinsurance company to help you handle your financial risks, you may download and use this Capability Statement Template. This type of statement simply advertises your company to entice a reinsurer to make an arrangement with your business. Need one today? Download now!
8. Sworn Statement Template
Draft a sworn statement when a reinsurer does not meet and acknowledge its legal obligations. Get a copy of this Sworn Statement Template to start editing one. Edit it using MS Word and Apple Pages. Download now!
9. Statement of Work Sample Template
Use this Statement of Work Sample Template to specifically layout the duties and responsibilities of your reinsurer in taking part in your insurance company. You may edit it in MS Word and Apple Pages today. All you have to do is click the download button. Get a copy now!
10. Statement on the Purpose of a Corporation Example
Introduce your insurance company better with the help of this Statement on the Purpose of a Corporation Example. This template can be a guide and a saving grace in drafting a cession statement today. Download it in a Portable Document Format (PDF) right there and then.