An obligatory treaty sets rules under which qualifying risks are ceded and accepted according to the agreement.
The distinction that matters
Automatic acceptance applies only within the treaty’s scope, limits and exclusions.
What to check
- Check business classes and territorial scope.
- Review limits and underwriting authorities.
- Confirm reporting and referral requirements.
Example to discuss
A newly underwritten risk outside a treaty’s capacity needs separate placement rather than an assumption of automatic protection.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Jurisdiction and scope
This is an insurer-to-reinsurer concept. A retail customer should check the original policy and insurer rather than infer a direct claim entitlement from a reinsurance structure. Reporting definitions and contract terms may differ.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.