Question

What are the two ways in which treaty reinsurance may be transacted?

a.

Proportional and non-proportional basis

b.

Proportional and facultative basis

c.

Non-proportional and facultative basis

d.

Non-proportional and exclusive basis

Answer: (a).Proportional and non-proportional basis Explanation:Treaty reinsurance may be transacted on a proportional or non-proportional basis.

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Q. What are the two ways in which treaty reinsurance may be transacted?

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