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Assumption Reinsurance

   Also found in: Wikipedia 0.01 sec.
Assumption Reinsurance
A form of reinsurance in which an insurer simply takes the place of another insurer. That is, Insurance Company B assumes some or all of the policies previously serviced by Insurance Company A. Assumption reinsurance is rare compared to reinsurance in which the first insurance company remains liable for claims, and the reinsurer only pays in the event of default.


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Heritage Casualty has entered into an assumption reinsurance agreement, whereby all liabilities under the affiliated bank's policy have been transferred to a new carrier, retroactively effective to January 1, 2009.
Effective December 31, 2000, all of the remaining loss reserves of the Run-off Operations were ceded to a third party under an assumption reinsurance arrangement.
69 Shares outstanding (in millions) End of period 482 501 Weighted average 482 501 483 501 (a) Life and health insurance premiums increased 11% and total premiums and deposits increased 30% after excluding a one-time assumption reinsurance premium of $766 relating to the pre-liquidation liabilities of the Canadian group life and health business of Confederation Life (recorded in the second quarter of 1999).
 
 
 
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