Q. What is a second surplus treaty in reinsurance?

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Q. What is a surplus treaty?

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Q. What is the method of cession?

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Q. What is the insurer's retention?

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Q. What is a risk-attaching basis?

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Q. What is loss-occurring basis?

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Q. What is the purpose of the treaty arrangement between ceding insurer and reinsurer?

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Q. What is included in the treaty as a document of agreement?

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Q. Why are descriptions such as “all classes of business transacted in the fire department” not readily accepted in treaties?

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Q. What is listed in the treaty regarding territorial scope?

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Q. Why would a ceding insurer transacting business in the USA negotiate a separate treaty for such business?

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Q. Which type of treaty usually has a ‘worldwide’ scope?

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Q. What is the difference between the risk-attaching basis and the loss-occurring basis?

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Q. What are exclusions in a reinsurance treaty?

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Q. Why might a reinsurer exclude certain risks from a treaty?

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Q. Why might a reinsurer exclude certain risks from a treaty?What is a bordereaux?

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Q. What information is typically included in a bordereaux?

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Q. How often is a bordereaux typically submitted to the reinsurer?

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Q. Why might a reinsurer insist on a bordereaux for a newly established ceding insurer?

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Q. In what cases might a reinsurer need to effect reinsurance in respect of their acceptance?

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