Question

What is the purpose of reinsurance treaties?

a.

To specify the terms and conditions of an insurance policy

b.

To outline the coverage and premiums of a particular insurance policy

c.

To minimize the financial losses of an insurance company

d.

To contain the obligations and responsibilities of both the direct insurance company and the reinsurer

Posted under IC22 Life Insurance Underwriting

Answer: (d).To contain the obligations and responsibilities of both the direct insurance company and the reinsurer Explanation:The purpose of a reinsurance treaty is to contain the obligations and responsibilities of both the direct insurance company and the reinsurer.

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Q. What is the purpose of reinsurance treaties?
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