Question

What is mentioned in the operative clause regarding the method of cession?What does the territorial scope in the operative clause refer to?

a.

The reinsurer's method of accepting the cessionThe geographical area covered by the reinsurer

b.

The insurer's method of calculating the cessionThe geographical area covered by the insurer

c.

The reinsurer's method of calculating the cessionThe geographical area covered by retrocessions

d.

The insurer's method of accepting the cessionThe geographical area covered by direct insurances

Answer: The reinsurer's method of calculating the cessionThe geographical area covered by direct insurances Explanation:The operative clause states the method of cession, which would be the reinsurer's method of calculating the cession.The territorial scope is stated in the operative clause and it would usually include direct insurances.

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Q. What is mentioned in the operative clause regarding the method of cession?What does the territorial scope in the operative clause refer to?

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