Fronting Exposure definition: Copy, customize, and use instantly
Introduction
The term "Fronting Exposure" refers to the situation where an insurance company (the fronting insurer) provides coverage for risks, usually on behalf of another insurer or reinsurance company, but without assuming the full financial responsibility for the exposure. The fronting insurer typically acts as an intermediary and may transfer the risk back to the original insurer through reinsurance. This arrangement is often used to fulfill regulatory requirements or to allow for market access.
Below are various examples of how "Fronting Exposure" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Fronting Exposure" as the risk retained by the fronting insurer
This definition ties "Fronting Exposure" to retained risk.
"Fronting Exposure" refers to the risk that is retained by the fronting insurer, which issues the policy but transfers the underlying risk to another party, typically through reinsurance agreements, leaving only a portion of the risk with the fronting insurer.
Definition of "Fronting Exposure" as the intermediary risk in insurance arrangements
This definition connects "Fronting Exposure" to intermediary roles.
"Fronting Exposure" means the risk exposure assumed by a fronting insurer in an intermediary capacity, where the insurer provides coverage but the majority of the risk is transferred to another party, such as a reinsurer.
Definition of "Fronting Exposure" as the assumed liability by the fronting insurer
This definition links "Fronting Exposure" to liability assumption.
"Fronting Exposure" refers to the liability assumed by the fronting insurer, which legally takes on the responsibility of coverage, while in practice, the risk is passed on to another insurer or reinsurer.
Definition of "Fronting Exposure" as a contractual risk transfer arrangement
This definition ties "Fronting Exposure" to contractual agreements.
"Fronting Exposure" means a contractual arrangement where the fronting insurer provides coverage on behalf of another party but has the risk transferred back through reinsurance or other risk-sharing agreements.
Definition of "Fronting Exposure" as the regulatory risk retained by the fronting insurer
This definition connects "Fronting Exposure" to regulatory requirements.
"Fronting Exposure" refers to the risk that the fronting insurer retains to satisfy regulatory requirements, while the financial burden of the exposure is ultimately borne by another insurer or reinsurance company.
Definition of "Fronting Exposure" as the temporary coverage arrangement in reinsurance
This definition links "Fronting Exposure" to reinsurance arrangements.
"Fronting Exposure" refers to a temporary coverage arrangement where a fronting insurer issues a policy to meet certain needs, but the risk exposure is passed back to the original insurer or reinsurer, typically through a reinsurance agreement.
Definition of "Fronting Exposure" as the risk allocation in multi-party insurance deals
This definition ties "Fronting Exposure" to multi-party transactions.
"Fronting Exposure" means the allocation of risk in multi-party insurance transactions, where the fronting insurer holds the policyholder’s risk temporarily but does not retain the full exposure, transferring most of it to another party through reinsurance.
Definition of "Fronting Exposure" as the premium received by the fronting insurer
This definition connects "Fronting Exposure" to premium allocation.
"Fronting Exposure" refers to the premium received by the fronting insurer for providing the policy, even though the underlying risk and financial exposure are shifted to other reinsurers or insurance companies.
Definition of "Fronting Exposure" as a way to access the market for a non-licensed insurer
This definition links "Fronting Exposure" to market access.
"Fronting Exposure" refers to a method by which a non-licensed insurer can access certain insurance markets by utilizing a licensed fronting insurer to issue policies, with the risk exposure ultimately being transferred back to the original insurer.
Definition of "Fronting Exposure" as the risk management tool in cross-border insurance
This definition ties "Fronting Exposure" to cross-border arrangements.
"Fronting Exposure" means a risk management tool used in cross-border insurance transactions, where a fronting insurer provides the required local coverage and then transfers the risk to an international reinsurer or another insurer.
Definition of "Fronting Exposure" as the temporary assumption of risk by a fronting insurer
This definition ties "Fronting Exposure" to temporary risk assumption.
"Fronting Exposure" refers to the temporary assumption of risk by a fronting insurer, which provides coverage for an insured party while transferring the majority of the risk back to another insurer or reinsurer.
Definition of "Fronting Exposure" as the limited liability of the fronting insurer
This definition connects "Fronting Exposure" to limited liability.
"Fronting Exposure" means the limited liability that a fronting insurer assumes by issuing an insurance policy, with the main risk exposure being transferred through reinsurance or other risk-sharing mechanisms.
Definition of "Fronting Exposure" as the exposure that meets regulatory insurance requirements
This definition ties "Fronting Exposure" to regulatory compliance.
"Fronting Exposure" refers to the exposure assumed by the fronting insurer to meet regulatory requirements, allowing non-local or non-licensed insurers to access markets by using a licensed fronting insurer to issue policies.
Definition of "Fronting Exposure" as the risk that is passed back to the original insurer
This definition links "Fronting Exposure" to the transfer of risk.
"Fronting Exposure" refers to the risk that the fronting insurer initially holds but passes back to the original insurer or reinsurer, typically through reinsurance agreements or other risk-sharing strategies.
Definition of "Fronting Exposure" as the financial risk temporarily held by the fronting insurer
This definition connects "Fronting Exposure" to financial risk.
"Fronting Exposure" means the financial risk temporarily held by the fronting insurer when issuing a policy, with the ultimate risk being transferred back to the original party or reinsurer once the terms of the agreement are met.
Definition of "Fronting Exposure" as an arrangement for fulfilling coverage obligations
This definition ties "Fronting Exposure" to coverage obligations.
"Fronting Exposure" refers to the arrangement where a fronting insurer temporarily assumes coverage obligations, while the actual financial exposure is transferred to a third party, such as a reinsurer.
Definition of "Fronting Exposure" as a strategic risk transfer in the insurance market
This definition links "Fronting Exposure" to strategic risk transfer.
"Fronting Exposure" means a strategic risk transfer mechanism where a fronting insurer issues policies on behalf of another insurer or reinsurer, temporarily assuming risk but quickly transferring it back through reinsurance or other contractual arrangements.
Definition of "Fronting Exposure" as an arrangement for enabling market access for foreign insurers
This definition connects "Fronting Exposure" to market access.
"Fronting Exposure" refers to an arrangement that allows foreign or non-licensed insurers to access a specific market by utilizing a licensed fronting insurer to provide coverage, with the risks ultimately transferred to the original insurer.
Definition of "Fronting Exposure" as the insurance market practice for meeting local regulations
This definition links "Fronting Exposure" to local regulations.
"Fronting Exposure" refers to the insurance market practice where a fronting insurer issues coverage to meet local regulatory requirements, while transferring the risk exposure to another insurer or reinsurer located in the same or another jurisdiction.
Definition of "Fronting Exposure" as the arrangement for distributing risk across multiple parties
This definition ties "Fronting Exposure" to risk distribution.
"Fronting Exposure" refers to the arrangement where the fronting insurer acts as an intermediary, assuming initial risk exposure but distributing the majority of the risk to other parties, such as reinsurers or co-insurers.
Definition of "Fronting Exposure" as the allocation of risk through intermediary insurers
This definition connects "Fronting Exposure" to risk allocation.
"Fronting Exposure" refers to the allocation of risk through an intermediary insurer, where the fronting insurer assumes the policyholder’s risk temporarily but transfers most of the exposure to other insurers or reinsurers.
Definition of "Fronting Exposure" as the initial risk responsibility of a fronting insurer
This definition ties "Fronting Exposure" to initial risk responsibility.
"Fronting Exposure" means the initial risk responsibility assumed by the fronting insurer when it issues a policy, with the ultimate financial risk transferred to another party, typically through reinsurance agreements.
Definition of "Fronting Exposure" as a mechanism to facilitate market entry for non-domestic insurers
This definition connects "Fronting Exposure" to market entry.
"Fronting Exposure" refers to a mechanism that facilitates market entry for non-domestic insurers by using a local fronting insurer to issue policies that meet regulatory requirements while the underlying risk is transferred back to the original insurer.
Definition of "Fronting Exposure" as a short-term risk assumption for regulatory compliance
This definition links "Fronting Exposure" to regulatory compliance.
"Fronting Exposure" means the short-term assumption of risk by a fronting insurer for the purpose of meeting regulatory compliance requirements, with the risk typically shifted to other insurers or reinsurers after the policy is issued.
Definition of "Fronting Exposure" as the policyholder’s risk temporarily covered by a fronting insurer
This definition ties "Fronting Exposure" to temporary coverage.
"Fronting Exposure" refers to the situation where a fronting insurer temporarily covers the policyholder’s risk, with the risk transferred to another insurer or reinsurer for the duration of the policy or agreement.
Definition of "Fronting Exposure" as a method of distributing insurance risk to various parties
This definition connects "Fronting Exposure" to risk distribution.
"Fronting Exposure" means the method of distributing insurance risk to various parties, where the fronting insurer retains only a small portion of the risk and passes the majority to reinsurers or co-insurers.
Definition of "Fronting Exposure" as the risk assumption for compliance in certain insurance markets
This definition links "Fronting Exposure" to market compliance.
"Fronting Exposure" refers to the risk assumption by a fronting insurer in certain markets where compliance with local regulations requires a licensed insurer to issue policies, even though the risk exposure is transferred elsewhere.
Definition of "Fronting Exposure" as the temporary financial responsibility for meeting regulatory requirements
This definition ties "Fronting Exposure" to temporary financial responsibility.
"Fronting Exposure" means the temporary financial responsibility assumed by a fronting insurer for meeting regulatory requirements, with the underlying risk typically reinsured or transferred to another insurer.
Definition of "Fronting Exposure" as a tool for insurers to access restricted markets
This definition connects "Fronting Exposure" to restricted markets.
"Fronting Exposure" refers to a tool used by insurers to access markets that are otherwise restricted, allowing non-domestic insurers to enter a market by using a fronting insurer to meet local regulatory requirements.
Definition of "Fronting Exposure" as a means of ensuring legal coverage compliance
This definition links "Fronting Exposure" to legal compliance.
"Fronting Exposure" means a means of ensuring legal compliance in certain jurisdictions, where a fronting insurer issues a policy to meet local insurance laws, but the risk is largely transferred to another insurer.
Definition of "Fronting Exposure" as the provisional risk retention by a fronting insurer
This definition ties "Fronting Exposure" to provisional risk retention.
"Fronting Exposure" refers to the provisional retention of risk by a fronting insurer, which issues the policy but transfers the majority of the risk to another insurer or reinsurer under a reinsurance agreement.
Definition of "Fronting Exposure" as the temporary financial obligation assumed by a fronting insurer
This definition connects "Fronting Exposure" to temporary financial obligation.
"Fronting Exposure" means the temporary financial obligation assumed by a fronting insurer to provide coverage, with the understanding that the actual risk is passed on to another entity, typically through reinsurance.
Definition of "Fronting Exposure" as the limited risk exposure for a local insurer in a foreign market
This definition links "Fronting Exposure" to local insurers in foreign markets.
"Fronting Exposure" refers to the limited risk exposure assumed by a local insurer acting as a fronting insurer in a foreign market, allowing non-local insurers to access the market while the risk is transferred elsewhere.
Definition of "Fronting Exposure" as the arrangement for issuing policies while transferring the risk
This definition ties "Fronting Exposure" to policy issuance.
"Fronting Exposure" refers to an arrangement where a fronting insurer issues policies to fulfill certain requirements but transfers the majority of the risk to another insurer or reinsurer, typically through a risk-sharing or reinsurance agreement.
Definition of "Fronting Exposure" as the mechanism for insurers to meet legal requirements without holding the full risk
This definition connects "Fronting Exposure" to legal requirements.
"Fronting Exposure" means the mechanism used by insurers to meet local legal requirements or regulations by issuing policies, but without holding the full financial risk, which is transferred to another insurer through reinsurance.
Definition of "Fronting Exposure" as the limited coverage provided by a fronting insurer
This definition links "Fronting Exposure" to limited coverage.
"Fronting Exposure" refers to the limited coverage provided by a fronting insurer, which temporarily assumes the risk but passes on the majority of the exposure to another insurer or reinsurer.
Definition of "Fronting Exposure" as the process by which a fronting insurer acts as an intermediary
This definition ties "Fronting Exposure" to intermediary roles.
"Fronting Exposure" refers to the process by which a fronting insurer acts as an intermediary, issuing the policy on behalf of another insurer or reinsurer and assuming only minimal risk before transferring the remaining exposure.
Definition of "Fronting Exposure" as the shared risk arrangement for meeting insurance needs
This definition connects "Fronting Exposure" to shared risk.
"Fronting Exposure" means a shared risk arrangement where a fronting insurer assumes a small portion of the coverage responsibility, while the bulk of the risk is transferred to other reinsurers or insurers under an agreement.
Definition of "Fronting Exposure" as a strategy for fulfilling underwriting requirements in international markets
This definition links "Fronting Exposure" to international markets.
"Fronting Exposure" refers to a strategy used to fulfill underwriting requirements in international markets, where a local insurer acts as a fronting insurer but cedes most of the risk to foreign reinsurers.
Definition of "Fronting Exposure" as a risk distribution practice in the insurance industry
This definition ties "Fronting Exposure" to risk distribution.
"Fronting Exposure" refers to a risk distribution practice within the insurance industry, where the fronting insurer provides coverage but passes the majority of the financial risk to other parties, such as reinsurers, under reinsurance agreements.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.