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If the reassured assesses the risk of loss under the policy where he himself is the insurer, and that assessment lies outside the range of assessment that could be expected of a prudent reinsurer taking into account the data presented, it may be said that that evaluation should be disclosed. A consequence of the reassured's assessment of the risk may be that the reassured will select risks to be ceded under a reinsurance treaty adverse to the reinsurer and it may be that the methods of the reassured's selection of risks to be ceded are material to a prudent reinsurer.
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