What does Reinsured mean? Read on to discover the definition & meaning of the term Reinsured - to help you better understand the language used in insurance policies.
An insurance company is reinsured when it has purchased a reinsurance policy from a reinsurance company. Insurance companies buy this kind of insurance as a precautionary measure to make sure that all of their risks, not just those of their policyholders, are adequately covered.
More Insurance Terms And Definitions
The Merriam-Webster Dictionary defines insurance as:
b: Coverage by contract whereby one party undertakes to indemnify or guarantee another against loss by a specified contingency or peril.
c: The sum for which something is insured.
We hope the you have a better understanding of the meaning of Reinsured. If you are looking for the meanings of other important insurance terms and their definitions, just click on the letter below to find the words & concepts you are looking for: