Question

Why might a reinsurer exclude certain risks from a treaty?

a.

To protect the treaty result in their own interest

b.

To prevent the ceding insurer from writing risks in which they are not experienced

c.

Both a and b

d.

None of the above

Posted under IC85 Reinsurance Management

Answer: (c).Both a and b Explanation:A reinsurer may exclude risks or define the cover more clearly targeting to protect the treaty result in his own interest and thus prevent the ceding insurer from writing risks in which he is not experienced.

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