security requirements
Security requirements are the obligation to provide acceptable financial resources to cover self-insurance or reinsurance liabilities.
security requirements
Security requirements are the obligation to provide acceptable financial resources to cover self-insurance or reinsurance liabilities.
Additional Information
They may be based on the ceding company's statutory requirement to secure nonadmitted balances or on the cedent's or regulatory authority's concern regarding the self-insured or reinsurer's credit risk. They are also known as collateral.
