fronting arrangement

  • A reinsurance contract in which business produced by an insurer not licensed in a particular state is written on another company’s policy form, with the intention of ceding the entire policy liability to the producing (acquiring) company.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).