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        <div id="content-top2">P. 331</div>
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    <pre style="white-space:pre-line"><code>Fronting: until when? It starts now! And with further studies, everyoneâ€™s contribution, and a
great deal of responsibility, we will develop this resource to its maximum potential.

                                                Fronting

SOURCE CONTRACT (DOCUMENT ORIGINATING THE SURETY BOND)
        a) Work contract, services, supply, permit, etc.
        b) Appeal / Dispute over tax payments
        c) Tender or bid

Based in the same country:                                                                 Based in         = Different countries:
Account and ceding insurer                                                              COUNTRY (B)              Foreign insurer
                                                                                                                        +
                                         Principal based in                                                    Fronting company                   Beneficiary
                                         a foreign country                                                                                         based in
                      Risk underwriting                                                                                             COUNTRY (B)
                              and               (A)                                                         Product:
                                                                                                            Document:
                       SURETY BONDS       â€œCountry Aâ€                                                       bond
                       program setting       Insurer,                                   â€œCountry Bâ€         issuance
                                              (Surety)                                      Insurer,
      Account                                 Cedent          Facultative               License to operate  - TEXT     Beneficiary                   (Mexico)
   (Bondholder /                             Reinsurer       reinsurance                                    - TERMS    Obligee                    (Venezuela)
insured / principal)                                         contract for                in own country                Insured                    (Colombia)
(Terminology varies                                          â€œFRONTINGâ€
according to country)                                                                   Assignee            - DURATION Obligee                                 (USA)

                                                                                        Reinsured

 US BROKER                                                                              No intermediary involved                    Public                     Private
(intermediary)                                                                             in 90% of the cases         beneficiary beneficiary

                                                             Surety bond application /
                                                               Fronting form / slip

The counter-guarantee (GAI, in US) of the account granted based in country â€œAâ€ is related to the reinsurance contract written in country B (with
consent by the account) and through contract plus bond request, the form (bond application) is protected under the assumed risk.
Counter-guarantor = HOLD HARMLESS / reinsurance slip / bond request form: between insurer â€œAâ€œ and insurer â€œBâ€.
General Indemnity Agreement (GAI): between cedent and account.

Consulted bibliography and contributions received:

â€¢	 Bibliography: John B. Fitzgerald, Ray H. Britt and Daniel D. Waldorf. Principles of Suretyship. American

    Institute for Chartered Property Casualty Underwriters - Insurance Institute of America. 2th ed. 4th
    printing.

â€¢	 Special contribution to the drafting of the comparative table (data about facultative reinsurance): Alicia

    Salas Abad, lawyer (CEO, Reaseguradora Delta, Venezuela).

                                            329XXIV Asamblea General / XXIV General Assembly</code></pre>
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