Question

What is treaty reinsurance?

a.

An agreement between the original insurer and reinsurer for a specific risk

b.

A contract where the reinsurer has the option to accept or decline risks

c.

An agreement between the original insurer and reinsurer where the reinsurer automatically accepts a certain liability for all risks

d.

An agreement between the original insurer and reinsurer for a single policy

Answer: (c).An agreement between the original insurer and reinsurer where the reinsurer automatically accepts a certain liability for all risks Explanation:Treaty reinsurance is an agreement between the original insurer and reinsurer where the reinsurer automatically accepts a certain liability for all risks falling within the scope of the agreement.

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Q. What is treaty reinsurance?

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