obligatory treaty
An obligatory treaty is a reinsurance treaty between an insurer and a reinsurer (usually involving pro rata reinsurance), in which the insurer agrees to automatically cede all business that falls within the terms of the treaty.
obligatory treaty
An obligatory treaty is a reinsurance treaty between an insurer and a reinsurer (usually involving pro rata reinsurance), in which the insurer agrees to automatically cede all business that falls within the terms of the treaty.
Additional Information
The reinsurer, in turn, is obligated to accept such business.
Synonyms
automatic treaty
