Question

What happens at the expiration of an insurance policy?

a.

The policy is renewed automatically

b.

The policy is canceled by the reinsurer

c.

The coverage continues until canceled by the reinsured

d.

The coverage ceases if not renewed following the anniversary date

Posted under IC85 Reinsurance Management

Answer: (d).The coverage ceases if not renewed following the anniversary date Explanation:Expiration refers to the cessation of cover if the policy is not renewed following the anniversary date. If the policy is not renewed, the coverage will no longer be in effect. Therefore, option d is the correct answer.

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Q. What happens at the expiration of an insurance policy?
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