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Reinsurance Practice and the Law

Chapter 8 ESSENTIAL INGREDIENTS OF A REINSURANCE CONTRACT INTRODUCTION 8.1 Reinsurance is a species of contract. The rules applicable to the making of reinsurance agreements are, therefore, the general principles of the law of contract. Later chapters will examine the technical mechanisms—such as slips and wordings—by which reinsurance contracts are usually made; this chapter concentrates on basic legal concepts. The traditional analysis of a contract in English law has three elements:

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