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.
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 Security Requirements. 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: