WURTTEMBERGISCHE AG VERSICHERUNGS-BETEILIGBRUNGSESELLSCHAFT (formerly WURTTEMBERGISCHE FEUVERSICHERUNG AG) WURTTEMBERGISCHE VERSICHERUNG AG V HOME INSURANCE COMPANY

(1996) 5 Re LR 192

Queen’s Bench Division Commercial Court

Before Mr Justice Waller

Run-off - Pool - Reinsurance of pool members liabilities - Whether, on true construction, “reinsurance” agreement substituted reinsurers for reinsured member of pool as party to whom pool agency would owe its duties as agent conducting run off - Whether pool manager owed duties directly to reinsurer - Whether, if run-off conducted in way which forced reinsured to partake in run-off or to incur costs or expenses, reinsured had remedy against reinsurer - Whether, if pool manager repudiated its contract with reinsurer, reinsurer could terminate contract with reinsured - Obligation on reinsured to allow its name to be used, or to compel it to act in accordance with reinsurers reasonable instruction - Reinsurer agreeing to “bear all expenses of whatever nature that otherwise would have been claimed or requested from the reassured by the agent during the run-off period” - Whether that contemplated expenses to which pool manager might not be legally entitled - Whether there was warranty by reinsured that pool manager would carry out settlements conscientiously.