Question

Under what circumstances can a reinsurance agreement be automatically terminated?

a.

If the reinsurer fails to observe the terms of the agreement

b.

If the ceding insurer becomes insolvent

c.

If a war occurs between the countries of the ceding insurer and the reinsurer

d.

If the contract period expires without renewal

Answer: (c).If a war occurs between the countries of the ceding insurer and the reinsurer Explanation:In the case of a war between the country of residence of the ceding insurer and the country in which the reinsurer resides or carries on business, the agreement will be automatically terminated.

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

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