Question

Which of the following is typically described in a formal treaty wording for treaty reinsurance?

a.

The types of risks excluded

b.

The reinsurer's right to decline risks

c.

The insurer's obligation to allow all risks within the scope to be covered

d.

The monetary limits and mode of operation

Posted under IC85 Reinsurance Management

Answer: (d).The monetary limits and mode of operation Explanation:A formal treaty wording is 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 and premiums, and the period of agreement.

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Q. Which of the following is typically described in a formal treaty wording for treaty reinsurance?
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