Obligatory treaty

{
  "id": "MLC-T-INS-002378",
  "term": "Obligatory treaty",
  "field": "Insurance and risk management",
  "definition": "A type of reinsurance agreement where the ceding insurer is obligated to offer all risks within a defined class to the reinsurer, and the reinsurer is obligated to accept them. This arrangement provides automatic coverage for the ceding insurer, simplifying the placement of reinsurance for a large volume of similar risks. It contrasts with facultative reinsurance, where each risk is offered and accepted individually.",
  "url": "https://mlchart.com/terminology/insurance/obligatory-treaty/"
}