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Reinsurance and the Law of Aggregation: Event, Occurrence, Cause

Reinsurance and the Law of Aggregation: Event, Occurrence, Cause

Author: Oliver D. William
Publisher: Routledge
ISBN: 9780367688684

Published In: January 2023
Format: Paperback
Jurisdiction: U.K. ? Disclaimer:
Countri(es) stated herein are used as reference only
Hardback Edition ISBN: 9780367502850

List Price: HKD 545.87

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Description
Contents

Details

In excess of loss reinsurance, the reinsurer covers the amount of a loss exceeding the policy’s deductible but not piercing its cover limit. Accordingly, a policy’s quantitative scope of cover is significantly affected by the parties’ agreement of a deductible and a cover limit. Yet, the examination of whether a loss has exceeded deductible or cover limit necessitates an educated understanding of what constitutes one loss. In so-called aggregation clauses, the parties to reinsurance contracts regularly provide that multiple individual losses are to be added together for presenting one loss to the reinsurer when they arise from the same event, occurrence, cause or accident. Aggregation mechanisms are one of the core instruments for structuring reinsurance contracts.

This book systematically examines each element of an aggregation mechanism, tracing the inconsistent usage of aggregation language in the markets and scrutinizing the tests developed by courts and arbitral tribunals. In doing so, it seeks to support insurers, reinsurers, brokers and lawyers in drafting aggregation clauses and in settling claims.

Focusing on an analysis of primary sources, particularly judicial decisions, the book interprets each judicial decision to describe a system of inter-related rules, collating, organising and describing the English law of aggregation as applied by the courts and arbitral tribunals. It further draws a comparison between the English position and the corresponding rules in the Principles of Reinsurance Contract Law (PRICL).

Introduction

Part I: Aggregation of related claims

1. Relevance of aggregation in various (re-)insurance products

2. Context in which the aggregation of losses takes place

3. Features of aggregation clauses and causal requirements

4. Event-based aggregation in focus

5. Cause-based aggregation in focus

Part II: Aggregation issues in the relationship between the reinsurer and the reinsured

6. Aggregation and allocation

7. Aggregation and the principle of back-to-back

8. Aggregation and the principle of follow the settlements