Insurance Awareness - Reinsurance
Which of the following statements about treaty reinsurance is correct?
Which of the following statements about treaty reinsurance is correct?
medium Q14 of 15
Step-by-Step Solution
Step 1: Analyze treaty reinsurance characteristics
Treaty reinsurance covers a portfolio of risks automatically under a standing contract.Final Answer:
It covers a portfolio of risks under a standing agreement → Option DQuick Check:
Portfolio of risks under = correct choice ✅
Quick Trick: Treaty = Portfolio basis, automatic acceptance.
Common Mistakes:
MISTAKES- Thinking treaty reinsurance is limited to specific insurance types or excludes proportional treaties.
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