Hundred per cent treaty basis

Method to reduce the work and expense in preparing reinsurance treaty accounts. It obviates the preparation of separate accounts each showing the reinsurer’s individual proportion of premiums and losses. Instead a statement shows the hundred per cent treaty amounts of every item on the account with a copy submitted to each reinsurer with only its proportion of the final balance shown thereon. See CLEAN CUT BASIS.

Leave a Reply

Your email address will not be published. Required fields are marked *