Paragraph 8 of SSAP 62:
e. With respect to retroactive reinsurance agreements, the following additional conditions apply:
i. The consideration to be paid by the ceding entity for the retroactive reinsurance must be a sum certain stated in the agreement;
ii. Direct or indirect compensation to the ceding entity or reinsurer is prohibited;
....
Anyone happens to know what "Direct or indirect compensation" refers to and what ii exactly means?
e. With respect to retroactive reinsurance agreements, the following additional conditions apply:
i. The consideration to be paid by the ceding entity for the retroactive reinsurance must be a sum certain stated in the agreement;
ii. Direct or indirect compensation to the ceding entity or reinsurer is prohibited;
....
Anyone happens to know what "Direct or indirect compensation" refers to and what ii exactly means?
SSAP 62 Required Terms for Retro Reinsurance Agreements
