What is fronting

Fronting is most typically understood as when a ceding company insurer underwrites a policy and transfers the entire risk to a reinsurer. The company that underwrites the initial policy is the fronting company and receives a portion of the premium, despite ceding the entirety of the risk to the reinsurer.

Yo, if you don' stop frontin' i'ma pop ya one! Placing your hand on the front of your pants and making exaggerated masturbatory gestures either for the purpose of achieving an orgasm or to show off.

Did you see those guys fronting at the cheerleader tryouts? Several guys at the school dance formed a fronting conga line before the principal stepped in to stop it. Hugh G. Richard Nordquist. English and Rhetoric Professor. Richard Nordquist is professor emeritus of rhetoric and English at Georgia Southern University and the author of several university-level grammar and composition textbooks.

Featured Video. Cite this Article Format. Nordquist, Richard. Fronting: Definition and Examples. Plot and Themes of J. Tolkien's Book 'The Hobbit'. Definition and Examples of Inversion in English Grammar. Free Modifiers: Definition, Usage, and Examples. What Is Parsing? The insurance itself company does not pay any of the claims a client makes.

Fronting policies allow insurance companies to dabble in new areas of business, without taking in the typical risks of doing so. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Terms Underwriting Capacity Underwriting capacity is the maximum amount of liability that an insurance company agrees to assume from its underwriting activities.

What Is Catastrophe Reinsurance? Catastrophe reinsurance protects catastrophe insurers from financial ruin in the event of a large-scale natural or human-made disaster. What Is Prospective Reinsurance? Prospective reinsurance is a reinsurance contract in which coverage is provided for future losses on insurable events. Clash Reinsurance Clash reinsurance provides risk management for primary insurers who may receive multiple claims from policyholders resulting from a single event.

Quota Share Treaty Definition A quota share treaty is a pro rata reinsurance contract in which the insurer and reinsurer share premiums and losses according to a fixed percentage. Partner Links. Related Articles.