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Submitted by jeffrey on Thu, 06/23/2016 - 12:20

An arrangement whereby a licensed insurer, for a specified fee or premium, issues its policies to cover certain risks underwritten or otherwise managed by another insurer or reinsurer with the intent of passing all, or substantially all, of the liabilities thereunder to such insurers by means of reinsurance.  Such an arrangement may be illegal if the purpose is to frustrate regulatory requirements.