Question

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

a.

To cover all risks within the scope of the treaty

b.

To cover surplus only from specified risks within the scope of the treaty

c.

To provide primary insurance coverage to the insured

d.

To provide excess insurance coverage to the insured

Posted under IC85 Reinsurance Management

Answer: (b).To cover surplus only from specified risks within the scope of the treaty Explanation:The treaty arrangement between ceding insurer and reinsurer is designed to cover surplus only from specified risks within the scope of the treaty.

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