Question

What is the scope of a claim falling under a treaty?

a.

The reinsured can collect the whole loss from one reinsurer

b.

The reinsured bears the whole loss

c.

All reinsurers participating bear their respective share of the loss

d.

The reinsured can collect the whole loss from the treaty reinsurer

Answer: (c).All reinsurers participating bear their respective share of the loss Explanation:A claim falling within the scope of the treaty will be calculated subject to the provisions of the ultimate net loss clause which are applicable. All reinsurers participating bear their respective share of the loss, and the reinsured cannot collect the whole loss from one reinsurer.

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Q. What is the scope of a claim falling under a treaty?

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