Question

With the __________________ clause, the ceding insurer can make a provision for ‘termination without notice’ in the event of certain other circumstances stipulated in the contract.

a.

Operative clause

b.

Downgrade clause

c.

Commencement and Termination clause

d.

Sudden death clause

Posted under IC85 Reinsurance Management

Answer: (d).Sudden death clause Explanation:The Sudden death clause in a reinsurance contract allows the ceding insurer to include a provision for "termination without notice" in the event of certain specified circumstances mentioned in the contract. This clause provides the ceding insurer with the ability to terminate the reinsurance agreement abruptly and without prior notice if specific triggering events occur. These events are typically severe and unexpected, such as the insolvency of the reinsurer, a catastrophic event, or any other circumstances that significantly impact the stability or viability of the reinsurance arrangement. The Sudden death clause offers a safeguard for the ceding insurer to quickly terminate the contract in situations where continuing the agreement would be deemed impractical or detrimental.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. With the __________________ clause, the ceding insurer can make a provision for ‘termination without notice’ in the event of certain other circumstances stipulated in the contract.
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. Which of the following clauses is commonly found in all agreements and describes without any ambiguity the business coming within the scope of a reinsurance contract?

View solution

Q. The ___________ clause allows the possibility of making amendments, consent of both the parties, addendum forming integral part of and binding on the parties.

View solution

Q. ____________ is the amount of the ceding insurer`s loss which is eligible for recovery under the terms of an excess of loss treaty.

View solution

Q. Which of the following clauses allows the reinsured to cancel the reinsurance contract and then seek a new reinsurer if the reinsurer is downgraded by the rating organizations?

View solution

Q. When a reinsurance agreement is received, it must be:

View solution

Q. The importance of proper treaty documentation is emphasized because:

View solution

Q. What do treaty wordings refer to in the context of reinsurance agreements?

View solution

Q. The consideration for the reinsurance contract is:

View solution

Q. The parties to the reinsurance contract are:

View solution

Q. The ____________ serve the purpose of evidencing eventual acceptance of a share of the risk / treaty ceded by signing underwriters.

View solution

Q. What is the procedure followed for stamping outward treaties in India?

View solution

Q. How is the stamping of inward treaty agreements in India typically done?

View solution

Q. What is the requirement for stamping a treaty reinsurance agreement executed in India?

View solution

Q. What should be done if there are unacceptable conditions or absence of standard clauses in the reinsurance agreement?

View solution

Q. What is the purpose of proper treaty documentation in reinsurance?

View solution

Q. How are amendments usually made to a reinsurance treaty?

View solution

Q. What is the purpose of a treaty slip in reinsurance?

View solution

Q. Which approach is used in constructing treaty wordings for reinsurance contracts?

View solution

Q. How are the essential conditions of a reinsurance contract usually summarized?

View solution

Q. Which document follows the slip to evidence the placement, protection, and terms of cover in reinsurance?

View solution
View All MCQs on IC85 Reinsurance Management

Recommended Subjects

Are you eager to expand your knowledge beyond IC85 Reinsurance Management? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Basic Chemical Engineering

Get a solid foundation in Chemical Engineering with our Basic Chemical Engineering...

Microbiology

Uncover the fascinating world of microbes with our Microbiology category. Delve into...

Human and Cultural Diversity

Explore the rich tapestry of human societies with our Human and Cultural Diversity...

Geotechnical Engineering

Dive into the world of Geotechnical Engineering with our dedicated category. Explore...

Highway Engineering

Navigate the road to efficient transportation with our Highway Engineering category....

Power Plant Engineering

Embark on a journey through the fascinating domain of Power Plant Engineering, where...

Foundation Engineering

Master the principles of Foundation Engineering with our specialized category....

Food Engineering

Explore the fascinating world of Food Engineering with our specialized category....

Verbal Reasoning

Sharpen your logical thinking and reasoning abilities with our Verbal Reasoning...