Question

Which of the following terms is commonly used to describe a reinsurance contract expressed in the form of a treaty?

a.

Facultative reinsurance

b.

Proportional reinsurance

c.

Obligatory reinsurance

d.

Surplus reinsurance

Answer: (c).Obligatory reinsurance Explanation:A reinsurance contract expressed in the form of a treaty is commonly referred to as obligatory reinsurance. Treaty reinsurance involves an agreement that provides for the reinsurance of a number of risks and is expressed in the form of a treaty, outlining the terms and conditions of the reinsurance arrangement.

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Q. Which of the following terms is commonly used to describe a reinsurance contract expressed in the form of a treaty?

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