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Contents
- Preliminary Material
- Main Text
- 1 Functions, Definitions, and Types of Reinsurance
- Preliminary Material
- A Historical Background
- B The Functions of Reinsurance
- C Parties to a Reinsurance Contract
- D Fronting
- E Retrocession
- F A Legal Definition of Reinsurance
- G Types and Methods of Reinsurance
- H Facultative and Treaty Reinsurance
- I Facultative Reinsurance
- J Treaty Reinsurance
- K Proportional Treaty Reinsurance
- L Non-Proportional Treaties
- M A Hybrid Method of Reinsurance—Facultative Obligatory
- 2 The Formation of the Reinsurance Contract
- Preliminary Material
- A Elements of a Contract
- B Slips and Policies
- C Formation of Treaties
- D Writing Reinsurance at Lloyd’s
- E Brokers and Intermediaries
- 3 The Reinsurance Contract—Construction and Terms
- Preliminary Material
- A Construction of Reinsurance Contracts
- B Incorporation
- 3.42
- 3.43
- 3.44
- 3.45
- 3.46
- 3.47
- (1) Does the Clause Make Sense Without Undue Manipulation?
- (2) Is the Clause Germane?
- (3) Is the Clause Consistent?
- (4) Is the Clause Otherwise Inapposite?
- (5) Unusual Clauses
- (6) Effect of Incorporation
- (7) Reinsured’s Ability to Amend Insurance
- (8) Arbitration Clauses
- (9) Exclusive Jurisdiction Clauses
- (10) Choice of Law Clauses
- (11) Errors and Omissions Clauses
- C Implied Terms
- 3.65
- 3.66
- (1) Businesslike Obligations
- (2) Retention
- (3) Withholding Approval of Settlements
- (4) Provision of Documents and Information
- (5) Costs of Defending, Investigating, or Settling Claims
- (6) Obligation to Follow Judgment Entered Against the Reinsured
- (7) Duty of Good Faith in Exercising a Contractual Discretion
- 4 Obligations of the Reinsurer
- Preliminary Material
- A Reinsurer’s Obligation to Indemnify the Reinsured
- B Obligation to Follow any Judgment Entered Against the Reinsured
- C Loss Settlements Clauses
- D Follow the Settlements
- E ‘Pay as may be Paid Thereon’/‘Pay as may be Paid Thereon and to Follow their Settlements’
- F Follow the Fortunes
- G Diminution of the Loss
- H Aggregation
- I Losses Discovered or Claims Made Clause
- J Aggregate Extension Clauses
- K Limitation
- 5 Rights of the Reinsurer
- Preliminary Material
- A Payment of Premium
- B Claims Co-operation Clause/Claims Control Clause
- 5.07
- 5.08
- 5.09
- (1) Typical Features of Claims Co-operation/Control Clauses
- (2) Costs of Litigation where the Reinsurer has Withheld its Approval
- (3) Claims Co-operation Clause: A Condition Precedent?
- (4) Consequences of Breach of a Claims Co-operation/Control Clause which is not a Condition Precedent
- (5) Qualification of the Reinsurer’s Rights under a Claims Co-operation Clause
- C Inspection of Reinsured’s Records
- D Declaratory Relief
- E Subrogation
- 6 Denying Liability
- Preliminary Material
- A Non-disclosure and Misrepresentation
- B Elements of the Duty of Fair Presentation
- C Breach of the Duty of Fair Presentation
- D Conditions and Warranties
- E Notification
- F Limitation
- 7 Applicable Law and Jurisdiction
- Preliminary Material
- A Applicable Law
- B Jurisdiction
- 1 Functions, Definitions, and Types of Reinsurance
- Further Material