Question

What is bordereaux?

a.

The reinsurer decides what part of the original insurance he wishes to retain for his own account and reinsures the balance with a reinsurer.

b.

The original insurer shares the liabilities of the reinsurer along with the sum assured, premiums, and claims in the same proportion as per the agreement in the treaty.

c.

The ceding insurer is bound to part with a fixed percentage of every risk written by it.

d.

A list detailing the risks ceded to the treaty provided by the ceding insurer to the reinsurers.

Answer: (d).A list detailing the risks ceded to the treaty provided by the ceding insurer to the reinsurers. Explanation:A general practice under surplus treaties is for the ceding insurer to provide the reinsurers with a list detailing the risks ceded to the treaty. This list is called bordereaux.

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Q. What is bordereaux?

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