One type of reinsurance arrangement is automatic reinsurance. Under automatic reinsurance, the direct writer $($is $/$ is not$)$ required to ask for the reinsurers approval to bind a reinsurer to a qualifying risk. A qualifying risk is ceded and assumed based on the underwriting evaluation of the $($reinsurer $/$ direct writer$).$is $/$ reinsureris $/$ direct writeris not $/$ reinsureris not $/$ direct writer