Article 6.2.1

(Agreement on net retention)

(1)  The parties may agree on a duty of the reinsured to maintain a net retention. The net retention is the part of the risk under the contract of reinsurance retained by the reinsured for its own account without any reinsurance.

(2)  Absent such an agreement, there is no implied duty of the reinsured to maintain any net retention.

Commentary & Illustration