Question

What is a formal treaty wording in Treaty Reinsurance?

a.

A document that describes the monetary limits and mode of operation.

b.

A document that describes the calculation and payment of claims, the calculation and payment of premiums, and the period of agreement.

c.

A document that describes the classes of business covered, the territorial scope, and the risks excluded.

d.

All of the above.

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

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Q. What is a formal treaty wording in Treaty Reinsurance?

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