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LLR: Insurance & Reinsurance RSS feed

CHUBB INSURANCE CO OF EUROPE SA v DAVIES

Insurance (directors and officers liability) - Claim brought by third parties against director - Judgment given to third parties - Appeal by director - Liability insurers seeking declaration of non-liability - Whether third parties should be joined as co-defendants - Whether insurers’ action should be stayed pending director’s appeal - CPR Parts 19 and 24.

[2005] Lloyd's Rep IR 1

COLLEGE CREDIT LTD v NATIONAL GUARANTEE CORPORATION LTD

Insurance (credit) - Assured providing finance for obtaining motor vehicles on credit - Assured also providing finance for consumer insurances - Whether underwriting criteria in policy to include cost of consumer insurances.

[2005] Lloyd's Rep IR 5

CRAFT ENTERPRISES (INTERNATIONAL) LTD v AXA INSURANCE CO

Insurance - Open cover - Certificates issued under Open Cover - Exclusive jurisdiction clause - Clause providing for Swiss law and practice but giving the party who had title to goods the option have claims settled according to English law and practice - Whether option available to holder of Open Cover - Whether clause extending to jurisdiction.

[2005] Lloyd's Rep IR 14

MAYBAN GENERAL INSURANCE BHD v ALSTOM POWER PLANTS LTD

Insurance (marine) - All risks cargo insurance - Exception for inherent vice and unsuitable packing - Electrical transformer damaged in transit - Whether loss caused by marine peril - Whether loss caused by unsuitable packing.

[2005] Lloyd's Rep IR 18

NORMHURST LTD v DORNOCH LTD

Insurance (fire and business interruption) - Action for damages for consequential loss suffered by assured by reason of refusal of insurers to make payment - Whether damages payable.

[2005] Lloyd's Rep IR 27

TONICSTAR LTD v AMERICAN HOME ASSURANCE CO

Reinsurance - Conflict of laws - Anti-suit injunction - Proceedings started in England by claimants - Proceedings started by defendants in New York four days later - Defendants discovering that agreement contained an arbitration clause and commencing arbitration in New York - Application by defendants in England for stay of English proceedings under Arbitration Act 1996, section 9 - Application by claimants in English court for determination of seat of arbitration - Whether England the natural forum for the litigation - Whether reinsurance and arbitration agreements governed by English law - Whether defendants behaviour unconscionable or oppressive.

[2005] Lloyd's Rep IR 32

TRYG BALTICA INTERNATIONAL (UK) LTD v BOSTON COMPANIA DE SEGUROS SA

Reinsurance - Conflict of laws - Reinsurance in London of risk insured in Argentina - Application by reinsurers for negative declaratory relief - Whether English court had jurisdiction to give permission for service outside the jurisdiction - Whether agent trading within jurisdiction - Civil Procedure Rules Part 6.20 - Whether England most appropriate jurisdiction - Whether appropriate to grant declarations.

[2005] Lloyd's Rep IR 40

CARVILL AMERICA INC v CAMPERDOWN UK LTD

Reinsurance - Conflict of laws - Liability for brokerage - US insurers appointing brokers in US to place reinsurance - Agreement providing that brokers would be paid by reinsurers as was customary - Reinsurance placed in England - Reinsured ending appointment of brokers - Action by brokers against reinsurers seeking brokerage - Whether reinsured a necessary and proper party to the proceedings - Whether agreement excluded liability of reinsured for brokerage - Whether custom and practice in London market that reinsurers alone liable for brokerage - Whether England the most appropriate forum for hearing of action against reinsured - CPR, rr 6.20.3 and 6.21(2A).

[2005] Lloyd's Rep IR 55

LUMBERMEN MUTUAL CASUALTY CO v BOVIS LEND LEASE LTD

Insurance (construction of professional liability policy) - Assured reaching a settlement with third party - Settlement encompassing claims and counterclaims - No allocation for amount of assured’s liability - Whether assured’s liability had been ascertained - Whether insuring clause applied only to negligence - Whether assured could recover in respect of breach of warranty of construction contract.

[2005] Lloyd's Rep IR 74

MUNCHENER RUCKVERSICHERUNGS GESELLSCHAFT v COMMONWEALTH INSURANCE CO

Reinsurance - Conflict of laws - Forum non conveniens - Retrocession between a Canadian cedant and the London branch of the retrocessionaire - Contract made in England and governed by English law - Disputes as to meaning of retrocession - Service of English proceedings on cedant in Canada - Subsequent action by cedant in California against retrocessionaires and producing brokers - Whether action should be heard in England - Effect of contingent action against brokers - Whether retrocessionaires submitted to jurisdiction of Californian court by service of suit clause.

[2005] Lloyd's Rep IR 99

ROYAL & SUN ALLIANCE INSURANCE PLC v RETAIL BRAND ALLIANCE INC

Insurance - Conflict of laws - Assured covered by master policy and by local policy - Master policy applied only if there was no cover under the local policy - Proceedings commenced by local policy insurers in New York under that policy and by master policy insurers in England under that policy - Whether English proceedings should be stayed.

[2005] Lloyd's Rep IR 110

TIOXIDE EUROPE LTD v CGU INTERNATIONAL INSURANCE PLC

Insurance (product liability) - Excess policies incorporating terms of first layer policy - Supply of pigment which caused “pinking” when used in pvc door and window frames - Whether pinking was “on account of physical injury” - Whether there was an “accident, including continuous or repeated exposure to the same general harmful conditions - Whether loss notification option complied with - Whether option’s requirements waived - Whether damage was “neither expected nor intended” - Whether assured in breach of reasonable care provisions.

[2005] Lloyd's Rep IR 114

FRIENDS PROVIDENT LIFE AND PENSIONS LTD v SIRIUS INTERNATIONAL INSURANCE CORPORATION

Insurance (professional indemnity) - Primary layer policy imposing condition precedent that claims be notified as soon as possible during period of insurance - Excess layer policies incorporating terms of primary layer policy - Effect of incorporation - Whether extended cover under first layer policy incorporated into excess layer policies - Whether notification to brokers appointed by primary layer insurers was also given to excess layer policies - Whether notification clause a condition precedent to liability - Effect of breach of notification clause if not a condition precedent.

[2005] Lloyd's Rep IR 135

GRECOAIR INC v TILLING

Reinsurance (aviation) - Claimants insuring with local insurer in Angola and insurers reinsuring in London market - Aircraft damaged - Allegation by claimants of agreement whereby reinsurers undertook direct liability to claimants - Whether action could be brought by claimants against reinsurers under reinsurance or under separate agreement.

[2005] Lloyd's Rep IR 151

O’KANE v. JONES (THE “MARTIN P”)

Insurance (marine) - Two policies on vessel’s hull and machinery - Second policy cancelled after vessel became constructive total loss - Whether underwriters under first policy entitled to contribution from second insurers - Existence of double insurance - Identity of assureds under two policies - Whether managers of vessel had insured on behalf of owners - Agency - Insurable interest - Measure of contribution - Whether second policy voidable for non-disclosure of non-payment of premiums under first policy - Materiality, inducement and affirmation - Whether second policy void for mutual mistake - Marine Insurance Act 1906, sections 18, 26, 32 and 80.

[2005] Lloyd's Rep IR 174

BEAZLEY v HORIZON OFFSHORE CONTRACTORS INC

Insurance (marine) - Conflict of laws - Exclusive jurisdiction clause nominating English courts - Action by insurers seeking negative declaratory relief by reason of misrepresentation and non-disclosure - Action on policy by assured in Texas - Action against assured by third party in Texas - Whether English proceedings should be stayed - Whether appropriate to grant anti-suit injunction.

[2005] Lloyd's Rep IR 231

BLACKBURN ROVERS FOOTBALL AND ATHLETIC CLUB PLC v AVON INSURANCE PLC

Insurance (injury and disablement) - Professional footballer suffered injury which ended his career - Club obtaining policy against risk of injury to players - Exclusion for Permanent Total Disablement attributable either directly or indirectly to arthritic or other degenerative conditions - Proper construction of exclusion - Whether injury falling within exclusion.

[2005] Lloyd's Rep IR 239

COMMISSION OF THE EUROPEAN COMMUNITIES v FRENCH REPUBLIC

Insurance (motor) - Bonus-malus system imposed by French law - Premiums to be assessed by reference to accidents suffered by assured - Whether system contrary to Council Directives 72/239/EEC and 92/49/EEC.

[2005] Lloyd's Rep IR 247

DOHENY v NEW INDIA ASSURANCE CO LTD

Insurance - Property policy - Assureds declaring that any company in which they had been involved had not been declared bankrupt - Assureds involved with insolvent companies subsequently wound up - Whether such companies “bankrupt” - Whether duty of disclosure waived - Marine Insurance Act 1906, section 18(3)(c).

[2005] Lloyd's Rep IR 251

EPIKOURIKO KEFALAIO v ANAPTIXIS

Insurance - Regulation of insurance undertakings - Solvency margin - Winding up - Whether national law could give prior claim to employees of insurer.

[2005] Lloyd's Rep IR 259

FREAKLEY v CENTRE REINSURANCE INTERNATIONAL CO

Insurance (liability) - Reinsurance - Debtor companies incurring substantial liabilities for asbestos claims - Debtor companies becoming insolvent and going into administration in United Kingdom - Application by debtor companies in United States for relief under Chapter 11 - Declarations sought by administrators - Whether agreed plan involved transfer of rights or liabilities by debtor companies - Effect on claims handling.

[2005] Lloyd's Rep IR 264

HAWLEY v LUMINAR LEISURE PLC

Insurance (public liability) - Second defendant providing security services for first defendant - Claimant injured at first defendant’s premises by door steward employed by second defendant - Whether first defendant vicariously liable for tort of second defendant’s employee - Whether door steward a temporary employee of first defendant - Whether second defendant’s public liability insurers liable to provide indemnity - Whether claimant’s injury caused by “sudden, unforeseen, fortuitous and identifiable” act.

[2005] Lloyd's Rep IR 275

KEELEY v PASHEN

Insurance (motor) - Claim by widow of victim of driver convicted of manslaughter - Car used as mini-cab - Car driven at passenger after alighting - Whether car being used for social domestic or pleasure purposes - Whether car being used for hire or reward - Road Traffic Act 1988, section 151.

[2005] Lloyd's Rep IR 289

SIRIUS INTERNATIONAL INSURANCE CO (PUBL) v FAI GENERAL INSURANCE LTD

Reinsurance - Agreement for fronting arrangement supported by back to back retrocession - reinsurers requiring letter of credit - Agreement that no draw down was possible until retrocessionaires agreed that reinsurers should pay a claim - Dispute between parties resolved by Tomlin order - Whether Tomlin order amounted to agreement that reinsurers should pay a claim - Whether reservation of rights in Tomlin order in relation to letter of credit overrode right to recover under letter of credit following agreement that payment should be made.

[2005] Lloyd's Rep IR 294

CENTRE REINSURANCE INTERNATIONAL CO v FREAKLEY

Insurance (employers’ liability) - Asbestos claims - Insured becoming insolvent - Claims against liability insurers under Third Parties (Rights against Insurers) Act 1930 - Effect of policy deductible - Policy providing that control of claims to be transferred to insurer on insolvency of insured - Effect of transfer of rights in advance of statutory insolvency event - Whether claims clauses to be disregarded on basis that rights of third parties were altered - 1930 Act, section 1(3) - Whether insured entitled to be reimbursed in respect of claims-handling costs - Whether claims-handling costs forming a part of costs of administration - Insolvency Act 1986, section 19.

[2005] Lloyd's Rep IR 303

SWISS REINSURANCE CO v UNITED INDIA INSURANCE CO LTD

Reinsurance - Construction all risks policy issued by insurers - Policy covering material damage for 44 months during work and also losses in post-completion maintenance period - Policy providing that in event of works being halted cover would continue for six months - Works coming to an end when contractors walked off site - Policy brought to an end after expiry of six-month period - Whether insurers in breach of contract by treating themselves as discharged after six-month period - Whether premium in respect of maintenance period recoverable for total failure of consideration - Whether risks under policy divisible for purposes of payment of premium.

[2005] Lloyd's Rep IR 341

TEKTROL LTD v INTERNATIONAL INSURANCE CO OF HANOVER LTD

Insurance (business interruption) - Loss of source code by virus and by subsequent burglary - Policy excluding loss of information on computer systems or other records directly or indirectly caused by malicious persons - Whether loss of source code directly or indirectly caused by virus - Whether loss by burglary covered by policy.

[2005] Lloyd's Rep IR 358

AXA GENERAL INSURANCE LTD v GOTTLIEB

Insurance (buildings) - Fraudulent claim - Assured making excessive claim - Claims made for losses not incurred by assured - Full payment by insurers - Whether insurers entitled to return of payments - Whether assured entitled to keep that part of the payments which reflected genuine loss - Whether interim payments made prior to fraudulent claim recoverable by insurers.

[2005] Lloyd's Rep IR 369

GOSHAWK DEDICATED LTD v TYSER & CO LTD

Insurance brokers - Placing, claims and accounting documents in possession of brokers - Whether underwriters legal or equitable owners of documents - Whether implied obligation on brokers to disclose documents to underwriters - Whether custom of Lloyd’s market that brokers must disclose documents to underwriters - Effect of Terms of Business Agreements 2001.

[2005] Lloyd's Rep IR 379

NORTH STAR SHIPPING LTD v SPHERE DRAKE INSURANCE PLC THE NORTH STAR

Insurance (marine) - Procedure - Striking out - War risks policy - Vessel damaged by explosive device - Proceedings brought for constructive total loss - Insurers denying liability - Claimants later attempting to amend points of claim to include claim for cost of suing and labouring measures - Whether amendment permissible - Nature of claim for suing and labouring expenditure.

[2005] Lloyd's Rep IR 404

STANDARD STEAMSHIP OWNERS’ PROTECTION AND INDEMNITY ASSOCIATION (BERMUDA) LTD v GIE VISION BAIL

Insurance - P&I Club - Concessionaire requesting assured to obtain insurance cover against concessionaire’s liability to employees on board the assured’s vessels - Concessionaire added to assured’s P&I Club cover - Rules contained exclusive jurisdiction clause - Whether concessionaire bound by exclusive jurisdiction clause under Rules - Whether clause valid under Article 23 of European Council Regulation 44/2001 - Whether clause precluded by Articles 12-14 of the Regulation.

[2005] Lloyd's Rep IR 407

TOOMEY v BANCO VITALICIO DE ESPANA SA DE SEGUROS Y REASSEGUROS

Reinsurance - Direct policy against loss of television rights in event that Spanish football team was relegated from Spanish first division - Whether policy written on agreed value or subject to proof of loss - Identity of insured person under policy - Reinsurance of policy on full reinsurance basis - Content of full reinsurance clause - Whether clause a warranty as to compliance of direct policy with stated terms - Whether warranty in reinsurance relating to nature of underlying insurance.

[2005] Lloyd's Rep IR 423

ALLIANZ MARINE AVIATION (FRANCE) v GE FRANKONA REINSURANCE LTD LONDON THE “TREASURE BAY”

Reinsurance - Direct policy on floating casino by insurers with 45.238 per cent line - Reinsurance obtained by insurers - Reinsurance containing a follow the settlements clause and made subject to a deductible of US$5 million each vessel, each accident - Casino damaged by insured peril - Whether deductible to be applied to total amount of settlement or insurers’ 45.238 per cent of settlement.

[2005] Lloyd's Rep IR 437

BLACKBURN ROVERS FOOTBALL & ATHLETIC CLUB LTD v AVON INSURANCE PLC

Insurance (injury and disablement) - Professional footballer suffered injury which ended his career - Club obtaining policy against risk of injury to players - Exclusion for Permanent Total Disablement attributable either directly or indirectly to arthritic or other degenerative conditions - Proper construction of exclusion - Whether injury falling within exclusion.

[2005] Lloyd's Rep IR 447

BRETTON v HANCOCK

Insurance (motor) - Road Traffic Act 1988, section 143 - Claimant passenger injured in motor accident - Driver not insured - Accident partly caused by defendant - Whether claimant was a “user” of the vehicle - Allocation of responsibility between driver and defendant - Whether driver’s lack of insurance gave defendant counterclaim against claimant for using vehicle without insurance.

[2005] Lloyd's Rep IR 454

FORTISBANK SA v TRENWICK INTERNATIONAL LTD

Insurance (financial discounting fraud) - Policy requiring assured to bring proceedings against underwriters within 24 months of discovery of loss - Whether proceedings barred - Date on which assured discovered loss - Whether implied agreement by underwriters not to rely on time-limits - Whether underwriters estopped by representation or convention.

[2005] Lloyd's Rep IR 464

SPRIGGS v WESSINGTON COURT SCHOOL LTD DENNIS JAMES EAGLES WORCESTERSHIRE COUNTY COUNCIL TRAFFORD BOROUGH COUNCIL DEPARTMENT FOR EDUCATION AND SKILLS ROYAL AND SUN ALLIANCE PLC

Insurance (liability) - Third party rights - Liability policy issued to school - Claims by pupils subsequently made against school - Period during which liability insurers on risk - Policy voidable for non-disclosure of material facts - Whether policy affirmed by communications by insurers to claimant pupil.

[2005] Lloyd's Rep IR 474

THOR NAVIGATION INC v INGOSSTRAKH INSURANCE

Insurance (marine, hull and machinery) - Constructive total loss of insured vessel - Measure of indemnity - Whether policies valued or unvalued - Whether policies should be rectified - Whether insurers were estopped from denying that policies were valued - Insurable value - Marine Insurance Act 1906, sections 16, 27, 28 and 68.

[2005] Lloyd's Rep IR 490

KING v BRANDYWINE REINSURANCE CO

Reinsurance - General Corporate Excess policy by Exxon and affiliates - Oil pollution following grounding of Exxon Valdez - Assureds incurring clean-up costs and liability - Settlement of claims by insurers - Whether insurers proving liability at law - Law applicable to GCE policy - Effect of arbitration and service of suit clauses - Whether oil spill amounted to “debris” - Effect of “notwithstanding” clause.

[2005] Lloyd's Rep IR 509

ROYAL & SUN ALLIANCE INSURANCE PLC v DORNOCH

Reinsurance - Directors and Officers insurance - Claims control clause in reinsurance agreement - Obligation on reinsured to notify loss or losses within 72 hours of knowledge of loss - Whether “loss or losses” referred to losses of third party claimants or losses suffered by assured in following claims - Whether reinsured had “knowledge” of losses.

[2005] Lloyd's Rep IR 544

LIMIT (NO 3) LTD v PDV INSURANCE CO

Reinsurance - Conflict of laws - Direct risk and reinsurance written in Venezuela and retroceded into London - Application by retrocessionaires for declaration of non-liability - Retrocession containing disputes clause - Whether clause conferring jurisdiction on the English courts - Whether action more conveniently heard in England or Venezuela.

[2005] Lloyd's Rep IR 552

BONNER v COX DEDICATED CORPORATE MEMBER LTD

Reinsurance - Energy risks insured under Open Cover - Reinsurance issued as standing offer to subscribers to Open Cover - Whether brokers’ knowledge of loss prior to acceptance of reinsurance cover was a material fact - Whether reinsurers induced - Whether misrepresentations made to reinsurers as to duration and nature of direct risks under Open Cover - Whether implied term that reinsured would not “write against” the reinsurance - Nature of terms to be implied into a reinsurance agreement - Whether reinsurance covered long-term risks re-signed into the period of coverage.

[2005] Lloyd's Rep IR 569

AMERICAN INTERNATIONAL MARINE AGENCY OF NEW YORK INC v DANDRIDGE

Reinsurance - Direct marine policy requiring following market to follow settlements of leader - Reinsurance agreement expressed to be subject to same terms and conditions as original - Effect on reinsurance of lapse of insured vessel’s classification.

[2005] Lloyd's Rep IR 643

CNA INSURANCE CO LTD v OFFICE DEPOT

Insurance - Conflict of laws - Proceedings brought by insurers in England and by assureds in Florida - Agreement to stay Florida proceedings - Subsequent action brought in Florida - Whether insurers entitled to anti-suit injunction - Whether assureds entitled to stay of English proceedings.

[2005] Lloyd's Rep IR 658

PAINE v CATLINS AND OTHERS

Insurance (fire) - Policy on hotel - Condition precedent to recovery that flues were cleaned annually and that extraction hoods were cleaned monthly - Further reasonable care condition - Fire breaking out in canopy extraction duct - Whether flue or extraction hood - Whether assured in breach of reasonable care condition.

[2005] Lloyd's Rep IR 665