If Fidelity Reinsurance agrees to reinsure all autos that meet the underwriting rules specified in the contract with the primary insurer, this type of arrangement is:
A) an automatic treaty
B) individually negotiated
C) excess of loss
D) facultative

Question

Quizplus · Accepted Answer

An automatic treaty is an arrangement where the reinsurer agrees to automatically reinsure all risks that meet the specified underwriting rules without requiring negotiation on a case-by-case basis.

If Fidelity Reinsurance Agrees to Reinsure All Autos That Meet