Which of the following statements about treaty reinsurance is true? A

Which of the following statements about treaty reinsurance is true?

A) The reinsurer is required to underwrite each individual applicant that is reinsured.
B) The reinsurer must accept all business that falls within the scope of the treaty.
C) The ceding insurer can choose which business falling within the scope of the treaty it wishes to reinsure.
D) It protects the reinsurer by requiring the ceding insurer to charge adequate premiums.

ANSWER

Answer: B