Reinsurance Agreement – Must Have’s

Hi There,

{Disclaimer : This post is not intended to be a legal or expert advise or consultation. Please refer to your lawyer/legal department for legal advise/consultation. All liabilities are hereby expressly disclaimed}

So if you work with an Insurance or Reinsurance industry and your job is to review such treaties/agreements, the you may consider the below important clauses that should be given due emphasis in a Reinsurance Agreement :

  • Follow the fortunes clause (Follow the underwriting fortunes vs. follow the fortunes)
  • Errors and Omissions clause
  • Run-off : natural vs. contractual expiry vs Cut-off basis
  • Cut-through clause
  • Sunset clause : if you are an insurer then you need to tread with caution on this one.

Further as with all other agreements, the below 2 clauses should also be verified :

  • Term and Termination
  • Governing law and Jurisdiction

Hope this helps. Cheers

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