Question

What is the purpose of the "notice of cancellation at anniversary date" provision?

a.

To allow the reinsurer to review the treaty acceptances

b.

To provide flexibility in the termination process

c.

To ensure timely renewal of existing cessions

d.

To address potential cancellation in facultative acceptances

Posted under IC85 Reinsurance Management

Answer: (a).To allow the reinsurer to review the treaty acceptances Explanation:Some reinsurers include a provision for "notice of cancellation at anniversary date" (NCAD) in their acceptances. This provision allows the reinsurer to review the treaty acceptances without having to observe the notice period mentioned in the agreement.

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Q. What is the purpose of the "notice of cancellation at anniversary date" provision?
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