Insurance Awareness - Reinsurance
Which of the following is NOT a feature of treaty reinsurance?
Which of the following is NOT a feature of treaty reinsurance?
medium Q8 of 15
Step-by-Step Solution
Step 1: Recall treaty reinsurance features
Treaty reinsurance involves automatic acceptance of all risks in a portfolio without individual underwriting by the reinsurer.Step 2: Analyze options
Individual risk underwriting by the reinsurer contradicts the automatic acceptance feature and is characteristic of facultative reinsurance.Final Answer:
Individual risk underwriting by the reinsurer → Option AQuick Check:
Treaty reinsurance does not involve individual risk underwriting by the reinsurer.
Quick Trick: Treaty = No individual underwriting by reinsurer.
Common Mistakes:
MISTAKES- Confusing facultative underwriting with treaty reinsurance.
Master "Reinsurance" in Insurance Awareness
Start learning the concept with an interactive lesson.
Want More Practice?
15+ quiz questions · All difficulty levels · Free
Free Signup - Practice All QuestionsMore Insurance Awareness Quizzes