Question

What is the implication if there is no property matching the description in the original policy?

a.

The reinsurance policy becomes void.

b.

The reinsurer assumes the liability.

c.

The original insurer is responsible for the loss.

d.

The reinsured is exempt from liability.

Answer: (a).The reinsurance policy becomes void. Explanation:If there is no property in existence that matches the description in the original policy, the policy does not attach, and any reinsurance made in respect thereof also fails.

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Q. What is the implication if there is no property matching the description in the original policy?

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