Question

Which principle requires the subject matter of the reinsurance contract to exist at the time of making the contract?

a.

Principle of utmost good faith

b.

Principle of indemnity

c.

Principle of insurable interest

d.

Principle of existence

Answer: (d).Principle of existence Explanation:The principle of existence states that the subject matter of the reinsurance contract must exist at the time the contract is made. This principle ensures that the contract is based on tangible risks and provides clarity and certainty in the reinsurance agreement.

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Q. Which principle requires the subject matter of the reinsurance contract to exist at the time of making the contract?

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