Legal Dictionary of Pakistan

reinsurance treaty

A contract of reinsurance (usu. long-term) covering different classes or lines of business of the reinsured (such as professional liability, property, etc.) and obligating the reinsurer in advance to accept the cession of covered risks. ( Rather than receive individual notice of each specific claim covered, the treaty reinsurer will generally receive periodic reports providing basic information on the losses paid. - Also termed treaty of reinsurance. See BORDEREAU. Cf. FACULTATIVE CERTIFICATE.