As an insurance company collects premiums, it establishes a liability for future claims and holds assets to fund those liabilities. If insurance policies are ceded to another insurance company, the assets that are held to fund the future claims on those policies may also be transferred to the insurance company assuming the policies. Transfers of reserves, for the purposes of reporting on BEA surveys, SHOULD NOT be included in premiums reported on the BE-45 and BE-140 insurance surveys.
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