Introduction to Reinsurance.pdf - Prince Lobel
Introduction to Reinsurance.pdf - Prince Lobel Introduction to Reinsurance.pdf - Prince Lobel
Non-Congruence of Insurance and Reinsurance Provisions and Exclusions: Disputes can also arise when there is a difference between the provisions of the insurance policy or policies on the one hand, and the reinsurance treaty or facultative certificate on the other. The differences in language between the insurance and reinsurance agreements can involve exclusions, definitions, the policy term, limits or other critical provisions.
Non-Congruence of Insurance and Reinsurance Provisions and Exclusions (Cont): Disputes often arise as to whether a loss fits within a treaty period where the period of the underlying policy and the reinsurance agreement are not identical and where the terms of inception and termination are not identical. An example is where there is a losses occurring versus claims made type contract. Issues also arise where there are run-off or tail provisions in either of the agreements. Follow-the-fortunes does not trump an express limitation in the reinsurance agreement, but express follow-the-fortunes provisions may create a “presumption of concurrency” which will require the reinsurer to follow the cedent’s liability with respect to the underlying policy, unless there is clear language in the reinsurance agreement stating that the different provision in the reinsurance agreement controls.
- Page 1 and 2: April 4, 2008 Introduction to Reins
- Page 3 and 4: Overview What is Reinsurance Insu
- Page 5 and 6: Insurance/Reinsurance Similarities
- Page 7 and 8: How Reinsurance Works It spreads th
- Page 9 and 10: April 4, 2008 Types and Characteris
- Page 11 and 12: Characteristics of The Reinsurance
- Page 13 and 14: Forms of Reinsurance Pro Rata (“
- Page 15 and 16: Per Occurrence Excess Multiple Risk
- Page 17 and 18: The Anatomy of a Reinsurance Claim
- Page 19 and 20: The Anatomy of a Reinsurance Claim
- Page 21 and 22: The Anatomy of a Reinsurance Claim
- Page 23 and 24: The Anatomy of a Reinsurance Claim
- Page 25 and 26: April 4, 2008 Two Key Principles in
- Page 27 and 28: “Uberrimae Fides” or the Duty o
- Page 29 and 30: April 4, 2008 Common Problems and I
- Page 31: Right of Inspection: Virtually all
- Page 35 and 36: Declaratory Judgment Actions: Alth
- Page 37 and 38: Agreements to Arbitrate and Confide
- Page 39 and 40: Agreements to Arbitrate and Confide
- Page 41 and 42: The Loss - Scenario A Mitchell's N
- Page 43 and 44: The Reinsurance Claim Big Heart In
Non-Congruence of Insurance and<br />
<strong>Reinsurance</strong> Provisions and<br />
Exclusions (Cont):<br />
<br />
Disputes often arise as <strong>to</strong> whether a loss fits within a treaty period where the<br />
period of the underlying policy and the reinsurance agreement are not identical<br />
and where the terms of inception and termination are not identical.<br />
<br />
<br />
An example is where there is a losses occurring versus claims made type<br />
contract.<br />
Issues also arise where there are run-off or tail provisions in either of the<br />
agreements.<br />
<br />
Follow-the-fortunes does not trump an express limitation in the reinsurance<br />
agreement, but express follow-the-fortunes provisions may create a<br />
“presumption of concurrency” which will require the reinsurer <strong>to</strong> follow the<br />
cedent’s liability with respect <strong>to</strong> the underlying policy, unless there is clear<br />
language in the reinsurance agreement stating that the different provision in the<br />
reinsurance agreement controls.
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