What does Gross Cessation mean? Read on to discover the definition & meaning of the term Gross Cessation - to help you better understand the language used in insurance policies.
Occurs when a reinsurer assumes 100 percent of the risk covered by a policy issued by an insurer. An example of this is when a captive insurer assumes all the risk written for its parent by a "fronting company," and the captive then places reinsurance above its net retention.
We hope the you have a better understanding of the meaning of Gross Cessation.