title = "Collateral Requirements"

content = """
Collateral protects cedents against reinsurer default. Regulators and cedents often require collateral from unauthorized or lower-rated reinsurers.

**Forms of Collateral:** Letters of credit (LOCs), trust accounts, and escrow arrangements. LOCs are common for premium and loss reserves.

**Amount:** Collateral typically covers estimated reinsurance recoverables: outstanding premium payable, loss recoverables, and IBNR. Amount may be updated periodically.

**Administration:** Monitor LOC expiry and renew in advance. Ensure trust account balances meet requirements. Release collateral when obligations are extinguished.
"""  # noqa: E501

version = "0.0.1"
