Regulation
Letters of Credit
Definition
Bank guarantee securing reinsurance obligations, allowing non-admitted reinsurers to provide statutory credit to cedents.
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Related Terms
Capital Management
Collateral
Assets pledged to secure reinsurance obligations, protecting cedents from counterparty default.
Regulation
Credit for Reinsurance
Statutory accounting treatment allowing cedents to reduce liabilities for ceded reinsurance on financial statements.
Regulation
Trust Agreement
Legal arrangement where reinsurer deposits assets in trust to secure obligations and provide statutory credit to cedent.