Under this reinsurance arrangement, the original insurer is obligated to automatically reinsure any new underlying insurance contract that meets the terms of a prearranged contract, and the reinsurer is obligated to accept certain responsibilities for the specified insurance.Thus, the reinsurance coverage is provided automatically for many policies.Identify this arrangement.

Question

Quizplus · Accepted Answer

This describes a Treaty Reinsurance arrangement, where the reinsurer agrees to accept all risks from the ceding company that fall within the scope of the agreement, providing automatic coverage for new policies.

Under This Reinsurance Arrangement, the Original Insurer Is Obligated to Automatically