https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ARated_paperDefinition:Rated paper - Revision history2026-06-13T10:08:01ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Rated_paper&diff=6631&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-09T16:34:44Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>📜 '''Rated paper''' refers to [[Definition:Insurance policy | insurance policies]] issued on the [[Definition:Insurance carrier | carrier's]] own licensed and [[Definition:Rating agency | rated]] entity — meaning the coverage appears on the [[Definition:Balance sheet | balance sheet]] of an insurer that holds a [[Definition:Financial strength rating | financial strength rating]] from one or more recognized rating agencies such as AM Best, S&P, or Moody's. The term is most commonly encountered in conversations about [[Definition:Delegated underwriting authority (DUA) | delegated authority]] programs and [[Definition:Managing general agent (MGA) | MGA]] relationships, where an intermediary originates business but needs an [[Definition:Admitted carrier | admitted]] or well-rated carrier to provide the underlying policy paper that satisfies contractual and regulatory requirements.<br />
<br />
🔗 In practice, many [[Definition:Program administrator | program administrators]] and MGAs do not themselves hold an insurance license or a rating; they rely on a carrier partner — sometimes called the "paper provider" — to issue policies, file [[Definition:Rate filing | rates]], and maintain the [[Definition:Reserve | reserves]] required by [[Definition:Regulatory compliance | regulators]]. The carrier's rating reassures [[Definition:Policyholder | policyholders]], [[Definition:Insurance broker | brokers]], and contractual counterparties that the entity behind the policy has the financial resources to pay [[Definition:Claim | claims]]. [[Definition:Binding authority agreement | Binding authority agreements]] and [[Definition:Fronting | fronting]] arrangements spell out the terms under which the MGA can access the carrier's rated paper, including [[Definition:Commission | commission]] structures, [[Definition:Underwriting guidelines | underwriting guidelines]], and [[Definition:Reinsurance | reinsurance]] mechanics.<br />
<br />
💎 Access to highly rated paper is a strategic asset in insurance distribution. An MGA with an innovative product but no carrier relationship cannot bring that product to market, because [[Definition:Insurance broker | brokers]] and large commercial buyers routinely require minimum ratings — typically AM Best A− or better — as a condition of doing business. Conversely, a carrier with strong ratings but limited distribution reach can leverage its paper to earn [[Definition:Fronting fee | fronting fees]] and diversify its [[Definition:Premium | premium]] base without building specialized [[Definition:Underwriting | underwriting]] teams. The quality and availability of rated paper thus acts as a bottleneck — or an accelerant — across the [[Definition:Insurance value chain | insurance value chain]], and it is one of the first considerations any new [[Definition:Insurtech | insurtech]] venture must address.<br />
<br />
'''Related concepts'''<br />
{{Div col|colwidth=20em}}<br />
* [[Definition:Fronting]]<br />
* [[Definition:Financial strength rating]]<br />
* [[Definition:Managing general agent (MGA)]]<br />
* [[Definition:Admitted carrier]]<br />
* [[Definition:Binding authority agreement]]<br />
* [[Definition:Surplus lines]]<br />
{{Div col end}}</div>PlumBot