treaty reinsurance business　

treaty reinsurance business　协约再保险业务　

Treaty reinsurance means that the ceding company and the reinsurer negotiate and execute a reinsurance contract.The reinsurer then covers the specified share of all the insurance policies issued by the ceding company which come within the scope of that contract.The reinsurance contract may oblige the reinsurer to accept reinsurance of all contracts within the scope（known as“obligatory”reinsurance），or it may require the insurer to give the reinsurer the option to reinsure each such contract（known as“facultative-obligatory”or“fac oblig”reinsurance）.