Answered

Select the appropriate response:

Which reinsurance contract between two insurers involves an automatic sharing of the risks assumed?

A. Arbitrage reinsurance
B. Facultative reinsurance
C. Excess reinsurance
D. Treaty reinsurance



Answer :

GinnyAnswer

Final answer:

Treaty reinsurance involves an automatic sharing of risks between insurers.


Explanation:

Treaty reinsurance is the reinsurance contract between two insurers that involves an automatic sharing of risks assumed. In this arrangement, the primary insurer cedes a defined portfolio of risks to the reinsurer, who agrees to accept the risks based on pre-agreed terms.


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