Bordereau

Example

“The managing general agent submitted a monthly bordereau to the insurance carrier showing all 347 policies written that month, including policy limits, premiums collected, and any claims reported.”

Memory Tip

Remember 'BORDER-EAU' like 'border of water' - it's the border or boundary document that flows between insurers and reinsurers with detailed information.

Why It Matters

Bordereaux provide crucial transparency and accountability in insurance relationships, allowing reinsurers to monitor their risk exposure and ensuring proper premium calculations. For insurance professionals, understanding bordereaux is essential for managing reinsurance relationships and maintaining compliance with reporting requirements.

Common Misconception

Many people outside the insurance industry think bordereaux are the same as regular policy documents or that only large insurers use them. Bordereaux are actually specialized reporting tools used throughout the insurance industry, including by smaller managing general agents and specialty insurers to communicate with their reinsurers or carriers.

In Practice

A specialty marine insurance managing general agent writes $2.4 million in yacht policies during the quarter and prepares a bordereau listing each policy's details: hull values, coverage types, premiums, and deductibles. This report goes to their reinsurer who keeps 25% of the risk, showing $600,000 in retained premiums and $1.8 million in reinsured risk. The bordereau ensures accurate accounting and helps the reinsurer track their marine portfolio exposure across multiple agents.

Etymology

The term comes from French 'bordereau' meaning a detailed statement or memorandum, originally referring to any itemized list or schedule, adopted into insurance terminology in the 19th century as international reinsurance markets developed.

Common Misspellings

Related Terms

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See Also