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Reinsurance Management
This method saves considerable administrative work.
Any premium reserve withheld is also released and
only a reserve corresponding to the premium of the
previous year is withheld in the first account of the
next year.
Q. State the provisions of the Arbitration clause
in a treaty.
Ans: The salient points of the Arbitration Clause are:
i. Establishment of a court of arbitration with
either sole arbitrator or two arbitrators with an
umpire.
ii. The provisions for failure of either party to
nominate its arbitrator.
iii. The court to be governed by the laws of the
country where it sits.
iv. The court also to make an allocation as to costs.
v. The seat of arbitration is to be named. Normally
it is the domicile of the ceding company. 63
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