What is the term for the insurance company to which risk is transferred by contract?

The term for the insurance company to which risk is transferred by contract is referred to as the second party in the context of an insurance agreement. In a typical insurance contract, the first party is the client or policyholder who purchases the insurance, while the second party is the insurance company that agrees to indemnify the first party in the event of a covered loss. This transfer of risk is a fundamental aspect of the insurance process, wherein the individual or business (the first party) transfers the financial burden of potential future losses to the insurance company (the second party).

Understanding this relationship is crucial for anyone involved in the insurance field, particularly public adjusters, as it lays the foundation for how claims are processed and obligations are fulfilled under various insurance policies.