Question

Why is automatic reinsurance facility essential in designing surplus treaties in the cargo department?

a.

To secure maximum foreseeable extent

b.

To avoid large losses or exposures on shore

c.

To provide protection for accumulation on shore

d.

The commitment per voyage gets established only after all documents are entered in the voyage register

Posted under IC85 Reinsurance Management

Answer: (d).The commitment per voyage gets established only after all documents are entered in the voyage register Explanation:The commitment per voyage gets established only after all documents are entered in the voyage register, by which time the voyage may already have been completed. Hence, automatic reinsurance facility is essential.

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Q. Why is automatic reinsurance facility essential in designing surplus treaties in the cargo department?
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