The Law of Reinsurance

Abstract

1. Functions, Definitions, and Types of Reinsurance Historical background The Functions of Reinsurance Fronting Retrocession A Legal Definition of Reinsurance Types and Methods of Reinsurance Proportional Reinsurance Non-proportional Reinsurance Facultative and Treaty Reinsurance Facultative reinsurance Treaty Reinsurance Proportional Treaty Reinsurance Non Proportional Treaties A Hybrid Method of Reinsurance - Facultative Obligatory 2. The Formation of the Reinsurance Contract Elements of a Contract Slips and Policies Formation of Treaties Writing Reinsurance at Lloyds Brokers and Intermediaries 3. The Reinsurance Contract - Construction and Terms Construction of Reinsurance Contracts Incorporation Implied terms 4. Obligations of the reinsurer Reinsurer's obligation to indemnify the reinsured Obligation to follow any judgment entered against the reinsured Loss Settlements Clauses Follow the settlements "Pay as may be paid thereon" / "Pay as may be paid thereon and to follow their settlements" Follow the Fortunes Diminution in the loss Aggregation Losses Discovered or Claims Made Clause Aggregate Extension Clauses Limitation: When does the reinsurer's liability to indemnify its reinsured arise? 5. Rights of the Reinsurer Payment of premium Claims Co-operation Clause / Claims Control Clause Inspection of Reinsured's Records Declaratory Relief Subrogation 6. Denying Liability Non-disclosure and misrepresentation Elements of the Duty of Utmost Good Faith Breach of the Duty of Utmost Good Faith Conditions and warranties Conditions Notification Limitation 7. Applicable Law and Jurisdiction Applicable Law Jurisdiction