Synopsis: A recent court ruling in Equitas v. Randall & Quilter aims to rectify a situation whereby loss claimants are systematically stymied in their attempts to make reinsurance recoveries.
“There are only two rules, both obvious. First, that the reinsurer cannot be held liable unless the loss falls within the cover of the policy reinsured and within the cover created by the reinsurance. Second, that the parties are free to agree on ways of proving these requirements.” Lord Mustill, Hill v. M&G (1996)
Authors: Alex Jenkins
Published: Intelligent Insurer, February 2010
Available: Intelligent Insurer