F2018 Question15

mnrbermnrber
edited March 2022 in Odomirok.14-F

For part B, Why is it incorrect to say that insurers can extend due dates to make payments due later? Maybe these due dates are for 3 days after the reinsurer gets notified of the amt...
Is it because you can't change a due date rule on an existing contract?

Comments

  • Staff - ACStaff - AC

    I don't see a distinction between extending due dates and extending the "grace period" on the due dates. I don't find anything in the text that says to the contrary. So, I think the examiner's reasoning in making this distinction is questionable. They may have had specialized knowledge about the workings of reinsurance contracts. But since it is not found in the text, points should not be deducted for it.

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