Licensed For Reinsurance Only

What Does Licensed For Reinsurance Only Mean?

“Licensed for Reinsurance Only” is a status that grants a reinsurance company or its employees the authority to operate as reinsurers. It also permits reinsurance managers and brokers to conduct business in the state that issued the license. As with any other license, it can expire or be suspended if certain conditions are not met.

Insuranceopedia Explains Licensed For Reinsurance Only

In the U.S., it is the state, rather than the federal government, that grants licenses to insurance companies and insurance professionals, including reinsurers and their employees.

Once the license is issued, the reinsurance company must adhere to the insurance regulations of its state. One such regulation is maintaining solvency; failure to do so can result in the company losing its license.