What document typically outlines the terms of a reinsurance agreement?

The document that typically outlines the terms of a reinsurance agreement is the reinsurance treaty. A reinsurance treaty is a formal contract between an insurer (the ceding company) and a reinsurer that specifies the terms, conditions, and obligations of both parties regarding the reinsurance arrangement. This treaty establishes how risks are ceded, the extent of coverage, premiums to be paid, and other vital aspects that govern the relationship between the two entities in the context of risk transfer.

In contrast, an insurance policy is focused on the direct relationship between an insurer and its policyholder, detailing the coverage for the insured's risks. An endorsement is an amendment to an existing insurance policy that modifies its terms but does not extend to the reinsurance relationship. A premium schedule lists the premiums due under various policies or coverages but is not a comprehensive document outlining the terms of a reinsurance agreement.

Thus, the reinsurance treaty serves as the critical foundational document that dictates the intricacies of reinsurance arrangements, making it the correct choice.