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Agency Reinsurance

  • A designation that identifies the reinsurance of one or more of an agent's policies, with the agent acting for the reinsured under its authority.

  • A contract of reinsurance between a policy-issuing insurer and a reinsurer that concerns or is confined to business produced by a named agent of the insurer, usually generated by that agent and administered directly with the reinsurer with permission of the insurer. While there are other reasons for the practice, the usual intent is to allow an agent to issue larger policies than the insurer would otherwise permit. Usually, agency reinsurance is written as proportional reinsurance on property or other first-party insurances.