Insurance
Reinsurance Ceding Commission Income
Earning a ceding commission from the reinsurer for the quality of the portfolio ceded.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Reinsurance Commission Receivable | Asset (+) | 12,000.00 | - |
| Reinsurance Commission Income | Revenue (+) | - | 12,000.00 |
💡 Accountant's Note
Reinsurers pay ceding commissions (typically 20-35% of ceded premium) to compensate the cedant for acquisition and admin costs. This is an important income item that partially offsets reinsurance costs.
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