Liability Risk and Insurance
Reinsurers’ approval required
Called into question by a previous ruling, the right of reinsurers – under a market slip containing a claims cooperation clause
– to have a say in settlement and/or admission of liability is upheld. And the requirement of a reinsurer’s ‘prior approval’
is further strengthened by the decision that the reinsurer need not show reasonable grounds for refusal of consent. All that
was of concern was the claim itself.