Question

The reinsurance agreement that automatically accepts all new risks presented by the company seeking or requesting reinsurance from the reinsurer is known as a ____________ agreement.

Answer 1

Answer:

Treaty agreement

Explanation:

A treaty agreement is held between an insurer and a reinsurer, where the reinsurer states what classes of businesses it will accept from the insurer. All the policies that qualify under the treaty agreement should be accepted automatically by  the reinsurer.

A reinsurer is an insurance company that insures other insurance companies.

Answer 2

Answer:

the correct answer is Treaty

Explanation:

The reinsurance agreement that automatically accepts all new risks presented by the company seeking or requesting reinsurance from the reinsurer is known as a Treaty agreement.

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