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.

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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.