Question

What is the purpose of including dispute resolution methodology in a reinsurance treaty?

a.

To specify the E&O clause

b.

To detail the extent of errors that will be accepted by the reinsurer

c.

To resolve disputes between the direct insurance company and the reinsurer

d.

To provide guidelines for underwriting decisions

Answer: (c).To resolve disputes between the direct insurance company and the reinsurer Explanation:The dispute resolution methodology and arbitration methods are an important part of the reinsurance treaty.

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Q. What is the purpose of including dispute resolution methodology in a reinsurance treaty?

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