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Insurance intermediaries act as agents in the placement of insurable risks. As such, they are not liable, as
principal, for amounts arising from such transactions. In recognition of this relationship, debtors from insurance
intermediary transactions are not included as an asset of the Company. Other than the receivable for brokerage,
commissions, or fees earned on a transaction, no recognition of the insurance transaction occurs until the
Company receives cash in respect of the premiums or claims. At that point, a corresponding liability is
established in favour of the insurer or the cedant, unless the cash is held in trust, in which case neither the cash
nor the corresponding liability is reflected in the Company's financial statements.
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