Cede
Cede: To transfer all or part
of a risk written by an insurer to a reinsurer.
The process of distributing the sum insured
of a risk between reinsurer and reinsured under pro-rata
reinsurance contracts. All premiums and losses relating to
that risk are then distributed in the same proportion. When
a party reinsures its liability with another, it cedes
business and is referred to as the ceding company or cedant.
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