Follow the settlements clauses

By Donald Dinnie on September 22, 2015 Posted in Insurance

It is worth reminding ourselves about the useful findings in the UK Tokio Marine v Novae Corporate Underwriting case in 2013 regarding follow the settlements clauses: Where a retrocession by a reinsurer is expressed in general and unqualified terms it includes liability under all underlying policies. The reference to “loss occurrence” under the retrocession was construed … Continue reading

Reinsurer’s liability and included defence costs

By Patrick Bracher (ZA) on January 28, 2015 Posted in Insurance

The English court of appeal has reminded us of two insurance principles that are worth remembering: If there is no “follow the settlements” clause in a reinsurance policy, in order to trigger liability the insured must establish that it is, as a matter of law, liable to the third party claimant and that the loss … Continue reading

Interpretation of “follow the settlements” insurance clause

By Patrick Bracher (ZA) on August 1, 2014 Posted in Insurance

In an English decision the court had to interpret a follow clause in these terms: “Agreed to follow London’s Catlin and Brit Syndicate in claims excluding ex-gratia payments”. It was held that the following underwriter was bound by the settlement reached by the lead underwriters. The following underwriter was bound to pay its share. The … Continue reading