We use cookies to improve your website experience. To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy. By continuing to use the website, you consent to our use of cookies. Close

CHAPTER 3 INCORPORATION AND THE FULL REINSURANCE CLAUSE

Reinsuring Clauses

3 INCORPORATION AND THE FULL REINSURANCE CLAUSE THE FUNCTION OF “AS ORIGINAL” 3.01 In the late nineteenth and early twentieth centuries an underwriter who insured risks in which he was not an expert would refer to other policies that had already been taken out on the same subject matter and against the same risk. These contracts contained a typical clause worded as “warranted to be on the same rate, terms and identical interest of… Insurance Company.” Such clauses were interpreted by the courts as conditions precedent to the liability of the underwriters that the terms of the later insurance contract were identical to the earlier policy referred to. 1 As a result, disparities between the policies such as premium differences, 2 or valuation of the policy, 3 were held to be breaches of conditions precedent that relieved the insurers from liability. 4

The rest of this document is only available to i-law.com online subscribers.

If you are already a subscriber, please enter your details below to log in.

Enter your email address to log in as a user on your corporate account.
Remember me on this computer

Not yet an i-law subscriber?

Devices

Request a trial Find out more