Question

What happens to the insurer's rights and liabilities in existing contracts after the cancellation of registration?

a.

All contracts are terminated

b.

Rights and liabilities continue as if cancellation had not taken place

c.

New contracts are prohibited

d.

Liability increases after cancellation

Posted under IC 14 Regulations of Insurance Business

Answer: (b).Rights and liabilities continue as if cancellation had not taken place Explanation:After the cancellation of registration, the insurer is prohibited from entering into new contracts, but all rights and liabilities in respect of contracts entered into before the cancellation continue as if the cancellation had not taken place.

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Q. What happens to the insurer's rights and liabilities in existing contracts after the cancellation of registration?
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