Assumption Reinsurance
Definition of "Assumption reinsurance"
Form of insurance whereby the buyer (reinsurer) assumes the entire obligation of the cedent company, effected through the transfer of the policies from the cedent to the books of the reinsurer. Several thousand policies are transferred annually among insurance companies. Generally, life, health, and investment type policies such as annuities are the policies most likely to be transferred since they are of longer duration and in many instances cannot be canceled by the insurance company.
Popular Insurance Terms
Coverage in which the face amount of a policy remains uniform, neither increasing nor decreasing for as long as the policy is in force. ...
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Amendment to the law that requires companies that manage retirement plans to permit terminating participants to directly transfer any plan distribution to the individual retirement account ...
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Net income expressed as a percentage of average total equity. This percentage measures profitability by expressing how efficiently invested capital or equity is being utilized. ...
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