[R036]

reinsurance

1) The transaction whereby an insurance company (the reinsurer), for a consideration, agrees to indemnify another insurance company known as the ceding company (the reinsured) against all or part of a loss which the latter may sustain under a policy or policies it has issued.

2) When referred to as "a reinsurance," the term means the relationship between reinsured(s) and reinsurer(s).