AMERICAN CENTENNIAL INSURANCE COMPANY V INSCO LTD

(1997) 6 Re LR 138

Queen’s Bench Division Commercial Court

Before Mr Justice Moore-Bick

Excess of loss - Policy - Construction - Honourable engagements clause - Aggregation - Excess of loss contract incorporating honourable engagements clause - Approach to construction - Whether arbitrators erred in ruling that reinsured was entitled to aggregate claims arising from more than one policy or contract issued to different insureds or reinsureds and thus present what would otherwise be large number of individual claims as one aggregated claim with only one retention under terms of each reinsurance contract - Meaning of “one occurrence, claim made, loss discovered, or in the aggregate where applicable” - Whether reinsured precluded under contract from presenting claims to reinsurer on different basis from that on which it settled with its cedants.