REINSURANCE
Reinsurance
Reinsurance is insurance that is purchased by an insurance company from one or more other insurance companies as a means of risk management, sometimes in practice including tax mitigation and other reasons described below. The ceding company and the reinsurer enter into a reinsurance agreement which details the conditions upon which the reinsurer would pay a share of the claims incurred by the ceding company. The reinsurer is paid a "reinsurance premium" by the ceding company, which issues insurance policies to its own policyholders.The above text is a snippet from Wikipedia: Reinsurance
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reinsurance
Noun
- Insurance purchased by insurance companies that spreads the risk associated with selling insurance around so the danger of one large monetary loss is minimized.
The above text is a snippet from Wiktionary: reinsurance
and as such is available under the Creative Commons Attribution/Share-Alike License.