Cedent
Updated: 20 October 2024
What Does Cedent Mean?
A cedent is a party that transfers 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 coverage.
Insuranceopedia Explains Cedent
The term “cedent” is most commonly used in the reinsurance industry. In reinsurance, cedents are insurance companies that transfer risks to reinsurers. For example, if a life insurance company transfers $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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