3.5 Re-insurance Policy, Laws and Practice

The reinsurance's craft: the insurer's own risk-transfer — the original-insurer's-and-reinsurer's contract (the risk's layering: the retention-and-cession); the forms: the treaty (the standing arrangement — the classes' automatic cession) vs the facultative (the individual-risk's case-by- case); the proportional (the quota-share-and-surplus — the premium-and-loss's sharing percentages) vs the non-proportional (the excess-of-loss — the layer's attachment points); the retrocession (the reinsurers' own reinsurance — the chain's faces). The laws' faces: the Insurance Act's reinsurance provisions (the cession's regulation — the local-first policies; the retention's minimums; the abroad-cession's approval); the regulator's reinsurance directives (the approved-reinsurers list; the security's requirements); the treaty's contract law (the utmost good faith's reinsurance application; the follow-the-fortune clauses). The Nepali practice: the historical dependence (the foreign reinsurers' capacity — the Lloyd's-and-international market); the Nepal Re's establishment (the national reinsurer — the 2070s' face); the compulsory cession's era (the local-reinsurer's support policy); the catastrophe's faces (the earthquake-and-flood layers — the Himalayan risk's pricing; the 2015-earthquake's lessons). Exam Focus Long questions (the unit is the paper's regulatory core): (i) The Insurance Board's constitution-functions-powers (with the 2079 Authority update — the banker); (ii) The policyholder protection's architecture; (iii) The reinsurance's forms-and-laws. Short questions: the IAIS; the solvency's rationale; the treaty-vs-facultative; the Nepal Re. Trick areas: (i) The regulation's reason is the CONSUMER's asymmetry + the SYSTEMIC solvency — the twin rationale; (ii) The…