Question

What is a 'declined lives' treaty in reinsurance?

a.

A treaty where the reinsurer declines to provide coverage for certain types of lives

b.

A treaty where the reinsurer accepts lives declined by the insurer with additional premium

c.

A treaty where the insurer declines to provide coverage for certain types of lives

d.

A treaty where both the insurer and reinsurer decline to provide coverage for certain types of lives

Answer: (b).A treaty where the reinsurer accepts lives declined by the insurer with additional premium Explanation:A 'declined lives' treaty is a treaty where the reinsurer accepts lives declined by the insurer with additional premium.

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Q. What is a 'declined lives' treaty in reinsurance?

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