Page 65 - Life Insurance underwriting Ebook IC 22

contains the obligations and the responsibilities of both the parties
the direct insurance company and the reinsurer.

The treaties mainly cover the following points

✓It includes the provisions and condition with respect to the

different types of reinsurance.
✓It also elucidate the liabilities of the reinsurers in cases of claims

✓It contains the details of the point from where the liability begins
with respect to facultative, automatic, and other forms of
reinsurances.

✓The dispute resolution methodology and the arbitration methods
also form an important part of the reinsurance treaty.

3.3. Underwriting audit by reinsurers

Audit of the underwriting function by the reinsurer is an important
activity in the life cycle of an insurance company and cannot be

undermined

They cover following topics

✓Adherence to underwriting guidelines
✓Process and procedures

✓Risk areas
✓Adherence to the underwriting philosophy

✓Risk assessment aspects

The procedures with respect to adherence of calling for additional
requirements in the risk assessment process and managing risks

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