Reinsurance Operations
Funds Held
Definition
Amounts withheld by the cedent from reinsurance recoverables, typically earning interest. Used for security or as per treaty agreement.
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Related Terms
Regulation
Letters of Credit
Bank guarantee securing reinsurance obligations, allowing non-admitted reinsurers to provide statutory credit to cedents.
Capital Management
Collateral
Assets pledged to secure reinsurance obligations, protecting cedents from counterparty default.
Regulation
Trust Agreement
Legal arrangement where reinsurer deposits assets in trust to secure obligations and provide statutory credit to cedent.