How to Evaluate a Dealer Reinsurance Program and Avoid Costly Mistakes

The reinsurance B account is one of the most powerful and misunderstood tools in dealer reinsurance. Once funds move beyond required reserves, dealers gain new opportunities to influence investment performance, liquidity, and long-term wealth. The question is not whether you have a B account. The question is whether it is working as hard as it should.

Dealer reinsurance reserves are often misunderstood. This article explains how A Account and B Account reserves work, why distribution timing matters, and how certain reinsurance structures allow dealers to responsibly borrow against reserves without pulling money out or triggering unnecessary tax consequences.