Insurance
Reinsurance Recovery on Paid Claim
Recovering the reinsurer's share of a large property claim that exceeded the retention limit.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Reinsurance Recoverable (Asset) | Asset (+) | 40,000.00 | - |
| Claims Expense (Net — Recovery) | Expense (-) | - | 40,000.00 |
💡 Accountant's Note
Reinsurance recoveries reduce the net claims cost. The recovery asset is recognized when the insurer has a contractual right to receive from the reinsurer, typically when the claim is paid or admitted.
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