front company
A front company is an insurer that issues a policy and cedes all or a substantial part of the risk to another insurer.
Additional Information
Certain types of statutory coverages requiring evidence of insurance from admitted insurers are fronted and reinsured by captives. A "pure front" is one that delegates underwriting and claims handling authority to the reinsurer or a managing general agent (MGA). Most insurers that front for captives are not pure fronts.
