Question

Under what circumstances can a reinsurance agreement be automatically terminated?

a.

Failure to pay premiums

b.

War between the parties' countries of residence

c.

Change in regulatory requirements

d.

Insolvency of the reinsurer

Answer: (b).War between the parties' countries of residence Explanation:If war arises between India and the country in which the reinsurers reside or carry on business or are incorporated, the agreement shall be automatically terminated forthwith.

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Q. Under what circumstances can a reinsurance agreement be automatically terminated?

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