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Insurance Law Monthly

Claims cooperation clauses

In AIG Europe (Ireland) Ltd v Faraday Capital Ltd [2006] EWHC 2707 (Comm) the question before Morison J was whether a reinsured had broken a condition precedent which required the notification of losses to the reinsurers as soon as practicable after the reinsured became aware of those losses. The questions for the Court were, whose losses were being referred to, and when did the reinsured become aware of them? The facts of the case are remarkably similar to those in Royal & Sun Alliance plc v Dornoch [2005] 1 Lloyd’s Rep IR 544.

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