lender captive reinsurance: Reinsurance of an insurer by a captive reinsurance subsidiary of a lender. The captive typically reinsures only business produced by its parent and insured by one insurer. Trusts are established to control the flow of funds into and out of the captive. As with contract underwriting and GSE pool insurance, lender captive relationships are offered by insurers as a means of protecting primary business.
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