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1.5 Introduction to Reinsurance Wordings
An introductory course covering the essential aspects of drafting and interpreting reinsurance contract wordings, including the requirements of "contract certainty", and a review of some of the key legal decisions on the meaning of reinsurance wordings.
· Contract certainty; the FSA approach; the London Market "attributes" of contract certainty
· Principles of interpretation of contract wordings: ordinary meaning of words; contract as a whole
· Principles of drafting reinsurance wordings; perils of "cut and paste"
· How to go about it - structure of a wording and essential clauses; standard and bespoke wordings
· Different clauses for proportional and excess of loss business
· London Market Wordings Database
· Implied terms and incorporation of terms; "back-to-back"
· Warranties and conditions precedent
· "Event" and "occurrence" problems of definition
· Key legal decisions, an overview
· Proposed changes to reinsurance law - the current Law Commission proposals
On completion of the course delegates will have an understanding of the drafting process for reinsurance, how to avoid some of the pitfalls, and the requirements of contract certainty, and an introduction to the legal precedents governing reinsurance contracts, and will be able to identify the key clauses required.
The course will be appropriate for those, including brokers, underwrites and claims adjusters, with some knowledge of reinsurance principles and practice require a more detailed understanding reinsurance wordings and their legal basis, and responsible for drafting or checking reinsurance wordings.
An interactive presentation including lecture and group exercises drafting and critiquing sample wordings based on specimen slips and clauses.