The impact of all this is that the front-end insurance company, which is licensed in that state or country, withdraws contracts with the unlicensed and unlicensed insurer to make all the provisional declarations and certifications for that state or country. Then, the company before reinsuring immediately 90% to 100% of the risk on the unlicensed insurer. This frontage process has been around for well over 100 years, but it feels like backdoor business behind the scenes. Sometimes it seems that the unlicinsed insurer is simply trying to quickly attract one to the state`s regulatory authorities. In the current global economic turmoil, these fronting operations are under closer scrutiny. The main purpose of fronting insurance is to allow the captive or organization to issue policies in states where it is not licensed. . . .