Reinsurance
What constitutes a contract of reinsurance – A contract of reinsurance is “one by which an insurer procures a third person to insure him against loss or liability by reason of such original insurance.”[1]
Reinsurer required to disclose all information to reinsurer by default – Except as otherwise provided under automatic reinsurance treaties, a reinsurer who obtained reinsurance is required to communicate all the representations of the original insured, as well as all the knowledge and information he possesses, whether previously or subsequently acquired, which are material to the risk.[2]
Reinsurance presumed to be a contract of indemnity against liability – A contract of reinsurance is presumed to be a contract of indemnity against liability, and not merely against damage.[3]
Original insured no interest in
contract of reinsurance – The original insured does not have any interest in a contract of reinsurance.[4]
[1] P.D. 612 (Insurance Code), as amended, Section 97.
[2] Ibid. Section 98.
[3] Ibid. Section 99.
[4] Ibid. Section 100.
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