Question

What is a formal treaty wording?

a.

The agreement between the original insurer and reinsurer for a single risk

b.

The document that describes the monetary limits and mode of operation, the classes of business covered, the territorial scope, the risks excluded, the calculation and payment of claims, the calculation and payment of premiums and the period of agreement

c.

The document that describes the reinsurer's right to decline risks

d.

The document that describes the insurer's obligation to accept all risks

Posted under IC85 Reinsurance Management

Answer: (b).The document that describes the monetary limits and mode of operation, the classes of business covered, the territorial scope, the risks excluded, the calculation and payment of claims, the calculation and payment of premiums and the period of agreement Explanation:A formal treaty wording is usually drawn up by the parties to describe the monetary limits and mode of operation, the classes of business covered, the territorial scope, the risks excluded, the calculation and payment of claims, the calculation and payment of premiums and the period of agreement.

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