Assumption Reinsurance


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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.
References in periodicals archive ?
The business of the branch was transferred to an affiliate, Chartis Insurance Company of Canada (formerly AIG Commercial Insurance Company of Canada) via a portfolio assumption reinsurance and asset purchase transaction in November, 2008.
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.
NASDAQ: MIGI) today announced that the Meridian Security Insurance Company will assume the book of business of the Vernon Fire & Casualty Insurance Company through an assumption reinsurance agreement.
Therefore, virtually all of American Life's direct in- force business has been transferred to Mutual of America via assumption reinsurance.
While details of the first-round bids will not be disclosed at this time, the Jefferson-Pilot proposal consists of assumption reinsurance by Jefferson-Pilot Life Insurance Company of Kentucky Central's obligations to its life insurance and annuity policyholders.
Prior to closing, Trafalgar entered into a bulk assumption reinsurance agreement with Houston Casualty, under which Houston Casualty assumed all of Trafalgar's prior and existing insurance business.
Such consideration will consist of $6 million for the headquarters building and the other tangible assets transferred at closing, and $9 million representing the company's 60 percent share of the ceding commission in connection with the assumption reinsurance.
Capital was prefunded by PW at inception and no additional capital is projected due to the company's recent decision to focus its marketing efforts on assumption reinsurance as opposed to direct written business.
1, 1992, the company and its parent entered into a bulk cession and assumption reinsurance agreement whereby all policies owned by residents of the state of Michigan were transferred from Jackson National Life Insurance Company to Jackson National Life Insurance Company of Michigan.
BUSINESS WIRE)--May 29, 1996--Life Re Corporation (NYSE:LRE) announced today that its subsidiary, Reassure America Life Insurance Company (REALIC), has entered into an assumption reinsurance agreement, effective May 31, 1996, with United Insurance Company of America (United), a wholly owned subsidiary of Unitrin, Inc.