Reinsurance: Notification Of Loss/Claims Co-Operation Clauses
Mondaq Business Briefing › United Kingdom Law Articles in English (2007)
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Reinsurance: Notification Of Loss/Claims Co-Operation Clauses
The Commercial Court has reiterated that "loss" in a notification clause means actual loss to the reinsured.
In a number of recent decisions the courts have considered issues relating to claims provisions in reinsurance contracts. In AIG v Faraday the court held:No loss was suffered by the reinsured unless an actual loss was a "proven fact". "Potential loss" is a difficult concept and certainty was needed in view of the "draconian consequences" of breach of a condition precedent. "Loss" is an essentially different term from "alleged", "claimed" or "potential" loss.The decision marks a further move away from the decision ...See the full content of this document
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