Question

What is treaty reinsurance?

a.

An agreement between the original insurer and the reinsurer whereby the reinsurer automatically accepts a certain liability for all risks falling within the scope of the agreement

b.

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

c.

An option for the ceding insurer to cede and the reinsurer to accept a specific risk of a specific insured

d.

A type of reinsurance used for high-value exposures or to deal with high accumulation

Answer: (a).An agreement between the original insurer and the reinsurer whereby the reinsurer automatically accepts a certain liability for all risks falling within the scope of the agreement Explanation:Treaty reinsurance consists of an agreement between the original insurer and the reinsurer whereby the reinsurer automatically accepts a certain liability for all risks falling within the scope of the agreement.

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Q. What is treaty reinsurance?

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