Automatic treaty

{
  "id": "MLC-T-INS-000498",
  "term": "Automatic treaty",
  "field": "Insurance and risk management",
  "definition": "A reinsurance agreement under which the ceding insurer is obligated to offer, and the reinsurer is obligated to accept, all risks that fall within the pre-defined terms and conditions of the treaty. This arrangement provides continuous coverage for a specified class or portfolio of business. It contrasts with facultative reinsurance, where each risk is offered and accepted individually.",
  "url": "https://mlchart.com/terminology/insurance/automatic-treaty/"
}