Question

What is a reinsurance treaty?

a.

A legally binding agreement between the reinsurer and the policyholder

b.

A document that contains the obligations and responsibilities of the direct insurance company and the reinsurer

c.

An agreement that specifies the insurance policy terms and conditions

d.

A document that outlines the coverage and premiums of a particular insurance policy

Posted under IC22 Life Insurance Underwriting

Answer: (b).A document that contains the obligations and responsibilities of the direct insurance company and the reinsurer Explanation:A reinsurance treaty is a legally drafted and signed agreement between the direct insurance company and the reinsurer that contains the obligations and responsibilities of both parties.

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Q. What is a reinsurance treaty?
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