Formation of insurance contracts

Declarations to open covers

In BP plc v GE Frankona Reinsurance Ltd [2003] 1 Lloyd’s Rep 537 , Cresswell J considered the operation of a facultative/obligatory open cover. Although many of the issues at stake concerned the precise wording of the documents, the judgment contains some useful points on the binding effect of declarations, the times at which declarations are to be made and the obligation to notify individual subscribing underwriters.