How to record reinsurer premium settlement
The process of remitting ceded premium amounts to a reinsurer from a fiduciary account.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Ceded Premium Payable | Liability | 5,000.00 | - |
| Fiduciary Cash | Asset | - | 5,000.00 |
💡 Accountant's Note
For MGAs with reinsurance authority, this entry records the actual cash settlement of premiums owed to reinsurance partners net of any agreed-upon ceding commissions.
Practitioner & Systems Framework
💻 ERP Architecture
Processed through the accounts payable or reinsurance management module.
⚠️ Audit Flags
Late payments to reinsurers beyond the treaty grace period or variances in Bordereau reports.
📄 Required Documentation
Reinsurance Bordereau, treaty agreement, and wire transfer confirmation.
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Discussion & Community Questions
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