Practice question
Under Artex, does procuring reinsurance by itself cancel the original insurer’s direct policy obligation?
- Yes, in every case
- Only if the cession is large
- No; the original policy responsibility is not canceled by reinsurance alone
- Yes, if the insurer prefers
- Yes, after mailing a treaty copy
Legal references
- Artex Development Co. v. Wellington Insurance Co., G.R. No. L-29508, June 27, 1973, main decision: https://lawphil.net/judjuris/juri1973/jun1973/gr_29508_1973.html
- Insurance Code, as amended by RA 10607, Sections 26-48 and 97-100: https://lawphil.net/statutes/repacts/ra2013/ra_10607_2013.html
Answer this question in flashcards to review your response and continue practicing.