What does Security Requirements mean? Read on to discover the definition & meaning of the term Security Requirements - to help you better understand the language used in insurance policies.
Obligation to provide acceptable financial resources to cover self-insurance or reinsurance liabilities. May be based on the ceding company's statutory requirement to secure nonadmitted balances or on the cedent's or regulatory authority's concern regarding the self-insured or reinsurer's credit risk. Also known as collateral.
We hope the you have a better understanding of the meaning of Security Requirements.