Question

What is the liability of the reinsurer under a proportional treaty?

a.

The reinsurer is not liable until the ceding insurer accepts a risk

b.

The reinsurer's liability commences before the ceding insurer accepts a risk

c.

The reinsurer is only liable for losses that occur after the cession was made

d.

The reinsurer's liability commences simultaneously with that of the ceding insurer

Answer: (d).The reinsurer's liability commences simultaneously with that of the ceding insurer Explanation:Under a proportional treaty, the reinsurer's liability commences simultaneously with that of the ceding insurer.

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Q. What is the liability of the reinsurer under a proportional treaty?

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