Question

Under what circumstances can the insurer make the termination effective retroactively?

a.

If the termination is due to non-payment of premiums

b.

If the termination is due to the reinsured's insolvency

c.

If the termination is due to a material change in ownership

d.

If the termination is not the result of the prescribed 90 days' notice

Posted under IC85 Reinsurance Management

Answer: (d).If the termination is not the result of the prescribed 90 days' notice Explanation:If the agreement is terminated by any cause other than the prescribed 90 days' notice, the insurer has the option to make the date of termination effective retroactively from the last day of the previous quarter or 31st December of either the current or previous year.

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Q. Under what circumstances can the insurer make the termination effective retroactively?
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