Reinsurance in UK Law
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Insurance Company of Africa v Scor (UK) Reinsurance Company Ltd
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In my judgment, the effect of a clause binding reinsurers to follow settlements of the insurers, is that the reinsurers agree to indemnify insurers in the event that they settle a claim by their assured, i.e. when they dispose, or bind themselves to dispose, of a claim, whether by reason of admission or compromise, provided that the claim so recognised by them falls within the risks covered by the policy of reinsurance as a matter of law, and provided also that in settling the claim the insurers have acted honestly and have taken all proper and businesslike steps in making the settlement.
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Forsikringsaktieselskapet Vesta v Butcher and Others (First Appeal)
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By the reinsurance policy, the underwriters promised that if Vesta became liable for a loss under the insurance policy, then the underwriters would make good 90 per cent. The effect of a warranty in the reinsurance policy is governed by the effect of the warranty in the insurance poliicy because the reinsurance policy is a contract by the underwriters to indemnify Vesta against liability under the insurance policy.
A reinsurer could, of course, make a special contract with an insurer and agree only to reinsure some of the risks covered by the policy of insurance, leaving the insurer to bear the full cost of the other risks. Such a contract would I believe be wholly exceptional, a departure from the normal understanding of the back-to-back nature of reinsurance and would require to be spelt out in clear terms.
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Groupama Navigation et Transports v Catatumbo C.A. Seguros (Guasare)
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I did not understand Mr. Donaldson to quarrel with the presumption that in a proportionate reinsurance of the kind with which this case is concerned, there is a presumption that, in the absence of clear words to the contrary, the scope and nature of the cover afforded is the same as the cover afforded by the insurance. That at least I think is the effect of Vesta and it makes obvious commercial sense.
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Commercial Union Assurance Company Plc v NRG Victory Reinsurance Ltd
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In my view, the matter is better treated as a question of implication into the reinsurance contract, the implied term being that, absent any provision to contrary effect, the insurer will treat the decision of a foreign court of competent jurisdiction as to the liability of the reinsured to his original insured as binding, subject only to reversal on appeal and the limits which I have mentioned.
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Axa Reinsurance (UK) Plc v Field
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In such an event it is indeed likely that the treatment of multiple losses, and hence the outcome of the parallel contracts, was meant to be the same. But where a reinsurer writes an excess of loss treaty for a layer of the whole account (or the whole of a stipulated account) of the reinsured I see no reason to assume that aggregation clauses in one are intended to have the same effect as aggregation clauses in the other.
In ordinary speech, an event is something which happens at a particular time, at a particular place, in a particular way. A cause is to my mind something altogether less constricted. It can be a continuing state of affairs; it can be the absence of something happening. Equally, the word "originating" was in my view consciously chosen to open up the widest possible search for a unifying factor in the history of the losses which it is sought to aggregate.
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The Construction of Terms of Facultative Reinsurance Contracts: is Wasa v Lexington the Exception or the Rule?
Do reinsurers insure the liability faced by the reinsured under its original insurance contract? Where the reinsurance and direct insurance policies are written in identical terms, is it enough for...
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Handling conflicts of interest within financial innovation. The case of regulation and supervision of Bermuda sidecars
Purpose: The purpose of this paper is to describe the experience of a financial services regulator, the Bermuda Monetary Authority (BMA), in identifying and dealing with conflicts of interest in in...... ... in different financial sectors.For example, the past 12 years have witnessed a steady growth in cross-sectoral risktransfer between reinsurance and capital markets (Cummins, 2008). Novel , and morecomplex, inter-relations have a wide variety of consequences. On the one hand, forexample, they ... ...
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Managing Risk as a Duality of Harm and Benefit: A Study of Organizational Risk Objects in the Global Insurance Industry
This study examines how organizations construct and manage risk objects as a duality of harm–benefit within their normal operations. It moves beyond the existing focus on accidents, disasters and c...... ... theynavigate the tension of retaining risk in their insurance portfolio to increasethe benefit ofmaking profit and transferring risk to reinsurance to reduce the harm of paying claims.We showthat organizations’ constructions of risk are underpinned by everydayrisk man-agement practices of ... ...
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Risk, insurance and small farm credit in developing countries: A policy proposal
Lending to small farmers is often too risky for commercial banks; consequently extremely high interest rates have to be paid. Agricultural development banks go some way towards solving the problem....... ... The practical problems of implementation are considered and deemed surmountable by reinsurance and graduated premiums. THE PROBLEM It is a truth universally acknowledged that credit markets in underdeveloped rural areas ... ...
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March 2017 Reinsurance Newsletter
This quarter’s Squire Patton Boggs Reinsurance Newsletter focuses on the certified question sent to the New York Court of Appeals by the Second Circuit on Bellefonte. It also features regulatory up...
- Parallel Reinsurance
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Insurance and Reinsurance Update
This is our pick of the key recent legal and regulatory issues affecting the insurance and reinsurance sector. Non Party PI Insurers Liable for Costs - In the January 2019 case of Various Cl...
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Reinsurance Implications of FCA Test Case
Insurers seem confident that reinsurers will take their share of the impact of the Court’s judgment. So what are the immediate reinsurance issues arising from the decision?
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Lloyd's Estate form of witness statement
Chancery forms, including claim forms and applications for orders.... ... There is now produced and shown to us marked “ .2” a copy of the certificate or statement of reinsurance into Equitas] ... 3.2 [The syndicates in which the Deceased participated in the years of account 1993 and later have [closed by reinsurance ... ...
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Order for distribution of a Lloyd's Estate
Chancery forms, including claim forms and applications for orders.... ... and income in accordance with such trusts] without making any retention or further provision in respect of any contract of insurance or reinsurance underwritten by the Deceased in the course of his business as an underwriting member of Lloyd’s of London ... (2) the costs of the Claimants of ... ...
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sheet
Commercial Court forms including claims and application notices.... ... general commercial contracts and arrangements, including agency ... agreements ... insurance and/or reinsurance ... oil and gas and other natural resources ... physical commodity trading ... professional negligence claims ... provision ... ...