gross cessation

Occurs when a reinsurer assumes 100 percent of the risk covered by a policy issued by an insurer. An example of this is when a captive insurer assumes all the risk written for its parent by a "fronting company," and the captive then places reinsurance above its net retention.

Links for IRMI Online Subscribers Only: CICR 6/2004

Suggest an improvement or addition to the Insurance and Risk Management Glossary
Buy a print version of the Insurance and Risk Management Glossary
Link to the Insurance and Risk Management Glossary

More Risk Finance and Captives Information from IRMI
Books, Manuals, Newsletters	IRMI Online	SilverPlume Sage
Risk Financing
Captive Insurance Company Reports
Captive Practices and Procedures
Captives and the Management of Risk
The Risk Report
Free Risk Financing Articles in IRMI.com
Risk Finance
Captive Insurance
Additional Insured Insurance Law