What Is a Reinsurance Assisted Placement? A reinsurance assisted placement is a new reinsurance contract initiated by a reinsurance company. Reinsurance is insurance for insurers (also called stop-loss insurance). A reinsurance company is one that provides financial protection to insurers. Reinsurers handle risks—namely, a major claims event—that are too large for insurance companies to handle on their own. While
What Is Reinsurance Ceded? Reinsurance ceded is an insurance industry term that refers to the portion of risk that a primary insurer passes to another insurer. That other insurer is often a specialist in reinsurance. This practice allows the primary insurer to limit the overall risk exposure that it takes on with its clients. The
What Is Reinsurance Credit? Reinsurance credit is an accounting entry made by an insurer for premiums ceded to reinsurers and losses recovered from reinsurers. Reinsurance credit procedures allow an insurance company to treat money owed by reinsurers for covered losses as assets. When an insurance company enters into a reinsurance contract, it is agreeing to
What Is a Reinsurance Sidecar? A reinsurance sidecar is a financial entity that solicits private investment in a quota share treaty with an insurance company. In the quota treaty the ceding company and reinsurer share premiums and losses according to a fixed percentage. Investors who take part in reinsurance sidecars share in premiums and losses
What Is Regulation A? Under U.S. securities laws, an offering or sale of a security must be registered with the Securities and Exchange Commission (SEC) or meet an exemption. Regulation A is an exemption from registration requirements—instituted by the Securities Act of 1933—that applies to public offerings of securities. Companies utilizing the exemption are given
What Is Regulation AA? Regulation AA (Unfair or Deceptive Acts or Practices) was a regulation created by the Federal Reserve designed to address practices by banks that were perceived as unfair by consumers. Regulation AA established the procedures used to process complaints registered by bank customers. This regulation applied to state member banks only. It
What Is Regulation B (Reg B)? Regulation B is intended to prevent applicants from discrimination in any aspect of a credit transaction. It outlines the rules that lenders must adhere to when obtaining and processing credit information. Regulation B protects consumers and prohibits lenders from discriminating based on age, gender, ethnicity, nationality, or marital status.
What Is Regulation BB? Regulation BB is a Federal Reserve regulation that implements the 1977 Community Reinvestment Act. It sets standards to encourage bank lending to borrowers in low- and moderate-income communities and requires banks to provide certain information to the public. Regulation BB mandates that banks must disclose to the public which communities they
What Is Regulation C? Regulation C is the regulation that implements the Home Mortgage Disclosure Act of 1975. Regulation C requires many financial institutions to annually disclose loan data about the communities to which they provided residential mortgages. As a result, regulatory authorities can evaluate whether the lender is adequately meeting the needs of the
What Is Regulation CC? Regulation CC is one of the banking regulations set forth by the Federal Reserve. Regulation CC implements the Expedited Funds Availability Act (EFAA) of 1987 and the Check Clearing for the 21st Century Act (Check 21). These laws set specific requirements for the timely availability of deposits that are made by
