Reinsurance payable on losses & LAE refers to which of the following?

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In reinsurance accounting, when the ceding company has paid losses and loss adjustment expenses (LAE), the reinsurer is obligated to reimburse a portion of those amounts. Reinsurance payable on losses and LAE is that obligation written as a liability on the reinsurer’s books. It represents the amounts the reinsurer still owes to the ceding company for losses and LAE the ceding company has already paid. It isn’t an asset or revenue; an asset on the ceding company’s side would be reinsurance recoverables (amounts expected to be recovered from reinsurers). For example, if the ceding company pays a claim and expects to recover 800,000 from the reinsurer, the reinsurer records a payable to the ceding company of 800,000, and the ceding company records an asset called reinsurance recoverable for 800,000. Contingent assets wouldn’t apply here because the payment is a definite obligation once the loss has occurred and is paid, not a potential future gain.