Reinsurance - Creation and incorporation of warranties

(HIH Casualty and General Insurance Ltd v New Hampshire Insurance Co (also forthcoming in [2001] Lloyd’s Rep IR))

In the January 2001 issue of Insurance Law Monthly there was extensive discussion of the decision of Mr Justice Aikens in HIH Casualty and General Insurance Ltd v Chase Manhattan Bank, July 2000, forthcoming in [2001] Lloyd’s Rep IR. The reinsurance sequel to that case, HIH Casualty and General Insurance Ltd v New Hampshire Insurance Co (also forthcoming in [2001] Lloyd’s Rep IR) was decided by Mr Justice David Steel on 4 December 2000. As with the Chase Manhattan Bank case, the court was asked to determine a series of preliminary issues on assumed facts: the issues were numerous, but the most important of them were concerned with the manner in which warranties may be created in a direct policy and then incorporated into reinsurance.