Reinsurance - Incorporation of underlying terms

(AIG Europe (UK) Ltd v Anonymous Greek Insurance Co of General Insurances, The Ethniki, forthcoming in [2000] Lloyd’s Rep IR 343)

The problems raised by the incorporation into facultative reinsurance contracts of the terms of the underlying direct insurance, by the formulation “as original” are well known. The issue in every case is exactly what terms of the underlying policy are carried into the reinsurance. The cases have gradually made it possible to conclude that words of coverage are included, whereas generally—but not always—ancillary terms are not carried across. The position of exclusive jurisdiction clauses was considered by the Court of Appeal in AIG Europe (UK) Ltd v Anonymous Greek Insurance Co of General Insurances, The Ethniki, forthcoming in [2000] Lloyd’s Rep IR 343 .