Question

What are the two main ways in which a reinsurance contract can be arranged?

a.

Facultative reinsurance and Treaty reinsurance

b.

Indemnity reinsurance and Non-indemnity reinsurance

c.

Proportional reinsurance and Non-proportional reinsurance

d.

Surplus reinsurance and Quota-share reinsurance

Posted under IC85 Reinsurance Management

Answer: (a).Facultative reinsurance and Treaty reinsurance Explanation:There are only two ways a reinsurance contract can be arranged - one-off for a single policy called facultative reinsurance, and automatic for a defined group of policies called treaty reinsurance.

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Q. What are the two main ways in which a reinsurance contract can be arranged?
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