Question

Why are obligatory reinsurances and retrocessions of inward treaty reinsurances excluded under the "Business Covered: Attachment of cessions - proportional" clause?

a.

They are very different from direct or facultative business

b.

They involve accumulations of risk

c.

They are not covered by automatic reinsurance arrangements

d.

They are restricted to specific categories of risks

Answer: (a).They are very different from direct or facultative business Explanation:Obligatory reinsurances and retrocessions of inward treaty reinsurances are excluded under the "Business Covered: Attachment of cessions - proportional" clause because they constitute a class by themselves and are very different from direct or facultative business.

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Q. Why are obligatory reinsurances and retrocessions of inward treaty reinsurances excluded under the "Business Covered: Attachment of cessions - proportional" clause?

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