Question

________________ is a contract of reinsurance whereby the ceding insurer may cede risks of any agreed class of insurance which the reinsurer must accept if ceded.

a.

Facultative reinsurance

b.

Treaty reinsurance

c.

Facultative obligatory reinsurance

d.

Retrocession

Posted under IC85 Reinsurance Management

Answer: (c).Facultative obligatory reinsurance Explanation:Facultative obligatory treaty is a combination of facultative and treaty forms of reinsurance, whereby the ceding insurer can cede risks of any agreed class of insurance which the reinsurer must accept if ceded.

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Q. ________________ is a contract of reinsurance whereby the ceding insurer may cede risks of any agreed class of insurance which the reinsurer must accept if ceded.
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