Reinsurance: Strict Interpretation Of Claims Co-operation Clause

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Reinsurance: Strict Interpretation Of Claims Co-operation Clause

In a recent case the Commercial Court has reaffirmed the

importance that should be placed on claims co-operation clauses

in insurance/reinsurance policies. Christopher Clarke J adopted

a literal interpretation of the claims settlement provision by

finding in favour of reinsurers where the reinsured had let

commercial considerations override its coverage interests by

failing to comply with the terms of the clause.

There are a number of important lessons to be derived from

the decision (although these must be viewed in the context of

the specific claims settlement clause in issue):

A reinsured should not act on a unilateral basis in

investigating the nature and...

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