Reinsurance Practice and the Law
CLAIMS NOTIFICATION, CO-OPERATION AND CONTROL PROVISIONS
NOTIFICATION OF CLAIMS
When a reinsured sustains a loss, it will look to its reinsurer for payment of whatever portion of the loss the reinsurer has agreed to bear. The amount payable, and the terms on which it is payable, will depend on the provisions of the reinsurance contract. Of particular importance will be any contractual terms relating to notification. The contract may provide that the reinsured is obliged to notify the reinsurer of all events likely to give rise to a claim under the reinsurance contract, either within a specified time, “immediately” or “as soon as is reasonably practicable”. Alternatively, the contract may contain no express notification requirements or it may refer back to the terms of the original policy by means of a phrase such as “as original”. In treaty business, losses may only be notified when accounts are rendered, usually quarterly.
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