Question

Which of the following is true about a reinsurance treaty?

a.

It is only signed by the reinsurer

b.

It contains obligations of the direct insurance company only

c.

It is legally drafted and signed by both the direct insurance company and the reinsurer

d.

It is not an important agreement

Posted under IC22 Life Insurance Underwriting

Answer: (c).It is legally drafted and signed by both the direct insurance company and the reinsurer Explanation:A reinsurance treaty is an important agreement that is legally drafted and signed by both the direct insurance company and the reinsurer.

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Q. Which of the following is true about a reinsurance treaty?
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