treaty reinsurance

Definition of "treaty reinsurance"
  1. A type of reinsurance encompassed by a broad agreement that instantaneously reinsures risks belonging to a particular category to a fixed limit the moment they're insured by the main insurer
How to use "treaty reinsurance" in a sentence
  1. The insurance company opted for treaty reinsurance to automatically secure risks as they became insured.
  2. The primary insurer minimizes its risk through treaty reinsurance as the risks are shared once the insurer accepts them.
  3. With treaty reinsurance, the insurer benefits from automatic coverage when it underwrites certain class of risks.

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