answersLogoWhite

0

A fronting fee is a charge made by an Insurer for issuing licenced paper in their name but where the risk of loss is actually carried by a "captive" insurer. It is paid by the captive insurer as a percentage of the gross premium charged.

The benefit relates to insurance appearing to be provided by an Insurer with an AM Best or Standard & Poors rating and in some cases where regulatory concerns state that an Insurer issuing certain classes of cover must be licenced in the location where cover is required. The captive is unlikely to be hold any financial security rating and may not meet the minimum requirements for capitalisation of an Insurer required to issue the licenced paper required.

User Avatar

Wiki User

17y ago

What else can I help you with?

Related Questions

What is the meaning of obvious?

Opposing; fronting., Exposed; subject; open; liable., Easily discovered, seen, or understood; readily perceived by the eye or the intellect; plain; evident; apparent; as, an obvious meaning; an obvious remark.


What is the meaning of rl fee with marks?

RL means Result Late


What does Alfred stand for?

It stands for a loser fronting room elephant.


What is the meaning of a fee paid for a service?

I don’t know


How is fronting and tailing observed in chromatography?

Fronting and tailing in chromatography are observed as distortions in the shape of the peaks on the chromatogram. Fronting occurs when the peak is broader and taller than expected, while tailing occurs when the peak is elongated and skewed. These distortions can be caused by factors such as sample overload, column overloading, or interactions between the sample and the stationary phase.


What does fronting mean?

what does front as in battlefront, mean ?!


What is the definition of the root feudom?

Meaning a feud or fee, feodum.


Where is opel sintra battery?

Fronting the cae it's to the left under the fusebox


What is the meaning of a loan origination fee?

A loan origination fee is a term that describes a fee charged by the lender to pay for the costs of evaluating, preparing and submitting the proposed mortgage loan.


What is an antonym for scholarship?

well, in meaning it would be tuition.. or in general "fee"


What is the name of a small sail fronting the mast in very bad weather?

Storm Jib


What is the meaning of package software?

Packaged software is software that is commercially available and designed for a specific use. This type of software typically requires an outright purchase fee and often a fee for updates or a regular rental fee.