What is the Definition of Fronting?
A procedure in which a primary insurer acts as the insurer of record by issuing a policy, but then passes the entire risk to a reinsurer in exchange for a commission. Often, the fronting insurer is licensed to do business in a state or country where the risk is located, but the reinsurer is not. The reinsurer in this scenario is often a captive or an independent insurance company that cannot sell insurance directly in a particular country.
Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/
Label: Insurance
Theme: Dictionary of Insurance Terms
Other Questions: What is the definition of Annuity?
What is the Definition of Fronting?
You can find random definition and meaning of insurance terms below:
Meaning of Original Equipment Manufacturer Parts in Insurance Terms
Sheet metal auto parts made by the manufacturer of the vehicle. (See Generic auto parts)
Meaning of Over-The-Counter/Otc in Insurance Terms
Security that is not listed or traded on an exchange such as the New York Stock Exchange. Business in over-the-counter securities is conducted through dealers using electronic networks.
Meaning of Package Policy in Insurance Terms
A single insurance policy that combines several coverages previously sold separately. Examples include homeowners insurance and commercial multiple peril insurance.
Thank you for visiting our website and read this FAQ article about "What is the Definition of Fronting?". We hope you get what you searching for.
definitionly.com is a website that contains information about the definition or meaning of a word. You can search for the terms you are looking for in the search field above.