The reinsurance company is reinsuring one or more risks covered by a business casualty policy. The business casualty policy is typically issued in the jurisdiction where the insured business has its primary or home office. The reinsurance company is not a party to that primary insurance contract. The reinsurance company [...]
A reinsurance company is a corporation. The documents typically required to open a corporate account will be necessary for opening an account for the reinsurance company. This would include: Article of Incorporation Certificate of Incorporation Bylaws Organizational Minutes Employer Identification Number (“EIN”) Possibly Stock Transfer Ledger
No. A reinsurance company should not purchase life insurance. Life insurance is not an appropriate investment for the reinsurer. The purchasing of life insurance using assets of the reinsurance company may impede the reinsurance company’s ability to pay claims due to a lack of liquidity.
A reinsurance company must maintain sufficient liquidity to pay claims. Premiums received by the reinsurance company should be liquid during the period of time those premiums may be called upon to satisfy claims pursuant to the insurance ceding agreements with primary insurers. The types of investments that can be utilized [...]
A reinsurance company is a corporation with a board of directors and officers. The officers make day-to-day decisions for the company. The board oversees the efforts of the officers. The officers will select one or more suitable investment advisors to assist with management of the portfolio of the reinsurance company. [...]