Question

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

a.

To protect the treaty result in their own interestA list detailing the risks ceded to the treaty

b.

To prevent the ceding insurer from writing risks in which they are not experiencedA list of risks excluded from the treaty

c.

Both a and bA list of risks that can be added to the treaty

d.

None of the aboveNone of the above

Posted under IC85 Reinsurance Management

Answer: Both a and bA list detailing the risks ceded to the treaty 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.A bordereaux is a list provided by the ceding insurer to the reinsurer, detailing the risks ceded to the treaty.

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