Question

What stipulation is typically included in the treaty contract regarding the periodicity of accounts in proportional treaty accounts?

a.

Accounts should be rendered annually

b.

Accounts should be confirmed by the reinsurer within a month

c.

Accounts should be settled by the debtor party within three months

d.

Accounts should be rendered within three months of the close of the quarter

Posted under IC85 Reinsurance Management

Answer: (d).Accounts should be rendered within three months of the close of the quarter Explanation:In proportional treaty accounts, the treaty contract usually stipulates the periodicity at which accounts should be rendered by the ceding insurer. A common stipulation is that the accounts should be rendered within three months of the close of the quarter. This ensures that the reinsurer receives timely and up-to-date financial information for monitoring and decision-making purposes.

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Q. What stipulation is typically included in the treaty contract regarding the periodicity of accounts in proportional treaty accounts?
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