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Cedent

What Does Cedent Mean?

A cedent is a party who gives the responsibility for reimbursing certain risks to another party. In the context of insurance, the cedent is the party that pays a premium to an insurance company in exchange for insurance coverage.

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Insuranceopedia Explains Cedent

The term cedent is most commonly used in the reinsurance industry. In reinsurance, cedents are the insurance companies who cede risks to reinsurers. For example, if a life insurance company cedes $5 million worth of risk to a reinsurance company in exchange for premium payments, the life insurance company would be the cedent.

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