Reinsurance Contract Wordings and Disputes

Date	11-12 Nov 2010
Venue	Charing Cross Hotel · Please contact us for help with booking accommodation
Price	EUR 1399.00 / GBP 1099.00 (+VAT @ 17.50)% Members of our Training Partnership scheme pay EUR 699.00 / GBP 549.00 (+VAT @ 17.50%)
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Course overview

What is this seminar about?

In reinsurance contracts, it is quite common practice for the wordings, which define the obligations of the parties, to be neglected. This results in the contract being unclear about the relationship between the reinsured and the reinsurer. Unfortunately, issues such as these often cause problems between the parties in later years and can lead to costly disputes.

In this seminar, leading experts give a step-by-step guide to the world of reinsurance wordings, making this an ideal programme for new lawyers in the reinsurance industry and also in private practice. During the intensive two days training all the important issues which need to be taken into consideration at the contract negotiation and drafting phase will be highlighted. The programme is designed to be highly practical and plenty of time will be set aside for questions and discussion between the audience and the expert panel of speakers.

New for 2010
A practical interactive workshop focusing on reinsurance contract wordings and their interpretation

Who should attend?

• Wordings technicians
• Reinsurance technicians
• Claims managers
• Wordings specialists
• In-house lawyers
• Lawyers in private practice
• Anyone who is involved in the drafting or implementation of reinsurance wordings

By attending this seminar, you will:

1 MASTER the basic legal principles of reinsurance terms and contracts wordings
2 GET-TO-GRIPS with the common clauses and legal considerations
3 GAIN an understanding of the incorporation of clauses
4 LEARN about the complexities of follow and settlement clauses
5 HEAR about the impact of contract wordings on reinsurance claims
6 GET UP-TO-DATE with the latest developments and current practise in choice of law and dispute clause

Programme - Day 1

The impact of contract wordings on reinsurance claims

• The need for clear contract wordings
• Managing reinsurance disputes
• Arbitration clauses
• Problems which can arise with respect to claim audits
• Contract certainty
• Contract wordings and latent claims
• Brokers and contract wordings
• Support required by the claims department to validate claims

Contract certainty and the other Market reforms

• Status of contract certainty efforts
• The role of the Market Reform Group
• The Market Reform Contract
• Market Process Reforms – ECF/A&S/E-Policies
• Developments at Lloyd’s

Incorporation of clauses

• The rationale for incorporation of clauses
• Does incorporation work?
• What are the difficulties with words of incorporation
• Impact of recent cases

Notification of claims

• What counts as a ‘circumstance’?
• How quickly must notification be given?
• To whom?
• In what form?
• What’s the effect of breach?

Follow the fortunes or follow the settlements – principles, presumptions and practicalities

• General principles – history and purpose of ‘follow’ clauses
• Construction and effect
  • Pro-cedent clauses
  • Pro-reinsurer clauses
• Limitations on duty
  • Bad faith
  • Ex gratia payments
  • Burden of proof
  • Claims governed by foreign law
• Conflicts with claims cooperation or control clauses
• English v US position

Defining the loss/aggregation clauses

• Meaning of event, occurrence and related terms
• Functions of aggregation clauses
• Key applications of aggregation principles
• Application of the relevant text for aggregation of loss
• Recent cases on aggregation – lessons learnt

Programme - Day 2

Loss of rights

• Conditions, conditions precedent and warranties
• Waiver by affirmation and waiver by estoppel
• The elements and availability of waiver
• Refusal to provide an indemnity – effect on the reinsured’s obligation to co-operate

Access to records clauses and confidentiality

• Construction of the Access to Records clauses
• Purpose of the Access to Records clause
• The right to inspect during disputes
• Failure to inspect
• Enforceability of the Right to Inspect
• Scope of the Right to Inspect
• Confidentiality clauses

Choice of law clauses

• Rules applicable to choice of law clauses – the new Rome I Convention
• Incorporation of choice of law from insurance to reinsurance
• ‘Floating’ choice of law clauses
• Choice of law in arbitration

Contract wordings and Part VII of the FSMA 2000

• Change of legislation resulting from HM Treasury Consultation November 2006
• Framework for objections by reinsureds and outwards reinsurers
• Loss of rights
• Implied statutory restrictions on outwards reinsurance contract wording ‘anti-avoidance’
• Ways to adapt contract wording

Claims co-operation clauses

• What are claims co-operation clauses in the reinsurance context?
• Imposing control via a claims co-operation clause (CCC)
• ‘Scor’ clauses
• Recent cases and their implications for reinsurers
• Importance of clear words
• Notification of loss under a CCC
• The importance of ensuring a CCC is a condition precedent
• Lessons to be learnt

Dispute clauses

• Court v arbitration
• Speed v cost
• Expert knowledge
• Joining third parties
• Enforcement
• ADR clauses
• What is an Honorable Engagement clause?
• Arbitration Act 1996

Mock mediation
A moderated mock mediation of a reinsurance dispute based on a scenario
to be provided to delegates.

The expert faculty

David Abbott is a partner in the commercial risk & reinsurance team of Barlow Lyde & Gilbert LLP. David specialises in insurance and reinsurance dispute resolution both in the UK courts and in domestic and international arbitrations. David’s work also includes a wide range of advisory and transactional work. He is also a member of the firm’s War, Political and Trade Risks group and has acted in a number of political and trade risk matters. David has written numerous articles for insurance and reinsurance publications including Insurance Day and The Review.

Helen Franzese is Counsel of Riker Danzig London LLP and practices exclusively in insurance law, advising and representing insurance companies in complex coverage litigation and alternative dispute resolution proceedings. She has represented London Market companies, syndicates and US based insurers in asbestos, pollution and health hazard related coverage matters.

Alison Green is joint leader of the Insurance and Reinsurance Group of 2 Temple Gardens, London. She specialises in insurance and reinsurance law, professional negligence and private international law. Alison is Vice President of the British Insurance Law Association, she is recommended as a leading junior specialising in Insurance in Chambers and Partners Directory and she is described in the 2010 Directory as “an eminent authority in the insurance community”.

Simon Kilgour is a partner at Reynolds Porter Chamberlain where he leads their reinsurance practice and acts for domestic and overseas insurers and reinsurers on complex, high value or non-standard coverage disputes or market issues. His work is mainly international and includes advising on wordings, inspections, inwards and outwards coverage disputes and collections.

Kevin Lazarus is a solicitor in the Legal and Compliance Team at Lloyd’s advising the corporation. Before joining Lloyd’s Legal in 2006 he was a solicitor in private practice including at Barlow Lyde & Gilbert where he specialised in reinsurance litigation. While at BLG, Kevin contributed to Reinsurance Practice and the Law, and he assisted with the current chapter on Lloyd’s.

Anthony Menzies is a partner in the London office of Taylor Wessing and a member of the firm’s Insurance Group. He advises on direct and reinsurance claims and coverage disputes, often with an international element. He has previously practised in the Cayman Islands. He has advised numerous participants in the international insurance and reinsurance markets on disputes concerning D&O and E&O, marine and energy, property insurance and business interruption.

Bill Perry is the first Senior Partner of Carter Perry Bailey, having previously been Senior Partner (and Head of Litigation) of Pickering Kenyon before spending 14 years at Charles Russell LLP, the last 8 of which as Head of Litigation and Dispute Resolution. Bill’s practice centres on insurance and reinsurance coverage issues, litigation and arbitration as well as advice on policy wordings. His recent reported cases include winning unanimously in the House of Lords for AGF Insurance in AGF Insurance v Lexington Insurance, the recent landmark case regarding “back to back” reinsurance.

Phillippa Rowe is Senior Partner of independent reinsurance consultants Phillippa Ross & Co. Phillippa has over thirty years experience of insurance and reinsurance claims in Lloyd’s and the London Market and internationally. She began her reinsurance career spending fifteen years with the Kiln Group at Lloyd’s. She currently acts as arbitrator, mediator, expert witness and technical consultant in a wide range of claims, wordings and market practice matters.

Stephen Surgeoner is a partner at Clifford Chance in London. He specialises in contentious and non-contentious insurance and reinsurance, Lloyds and professional indemnity. He joined Clifford Chance in 1992 and became Partner in 2002.

Vivien Tyrell is an authorised insolvency practitioner and has specialised in insurance insolvency and restructuring for over 20 years. She has a great deal of experience in preparing (as well as opposing and advising on) schemes of arrangement (both solvent and insolvent) of re/insurance companies, including pools, and in other forms of insurance restructuring, including business transfers under Part VII of the Financial Services and Markets Act 2000, distressed insurance debt sales and distressed corporate governance advice.

Peter Wedge is Legal Counsel at Infrassure (an energy & infrastructure insurer). Prior to this, he worked for SCOR, most recently in New York, as Global Head of Inspections and Claim Solutions, acting as a Director of General Security Insurance Company Limited. Previously, he was Head of Claims at Alea Europe and Legal & Claims Counsel at Swiss Re. He has 24 years experience in the insurance and reinsurance industry.

Ben Ogden is a partner at Ince & Co. He joined the partnership in 2002 and is a member of the firm’s insurance practice specialising in contentious matters. Ben heads up the Alternative Dispute Resolution Group in the firm and regularly mediates claims as an alternative to trial or arbitration. He advises on a wide variety of insurance claims both for and against insurers, and has regularly acted in professional indemnity matters.

Angus Rodger is a partner in the London office of Steptoe & Johnson, where he is a member of a widely respected and substantial firm-wide insurance practice. He has drafted, negotiated and advised on a wide range of insurance and reinsurance products and routinely advises on insurance coverage questions and has also spent many years handling contentious insurance matters, often with an emphasis on international disputes.

Francis Mackie has almost 20 years experience in the (re)insurance sector. His practice is well known in the London Market and international arbitration arena, where he has run arbitrations in London, Bermuda, the US and Europe. His dispute practice also includes significant London Commercial Court cases/disputes. Francis covers a wide range of insurance and reinsurance sectors, mainly dealing with dispute, advice and coverage issues.

Past delegates’ comments

Some of the comments received by participants on this course:

“Speakers were really knowledgeable about all topics”

F, Guardian Holdings Ltd

“This was an opportunity to listen to and question quality speakers”

Dean Dasley, Swiss re

“Thank you very much for organising such a great event. When I saw the agenda I though it was too good to miss, I’m glad I didn’t miss it!”

Ozlem Gurses, Southampton University

“Excellent speakers, really clear on what they are talking about. Very good presentations which allow us to better understand some wordings issues”

Audrey Lecarpentier, AXA CESSIONS

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Client portfolio

Our client portfolio for this course includes the following companies:

A&L Goodbody Solicitors	Hextalls	Price Forbes Ltd
ACE Tempest Re	Hiscox Insurance Co Ltd	Resolution Management Services Ltd
Ace Ina Services UK Ltd	Holman Fenwick Willan	Russia Reinsurance Company
Aksigorta AS	Houthoff Buruma NV	Shell Finance Switzerland
Aon Limited Representative Office	ING	Southampton University
Cavell Management Services	If P&C Insurance	Steptoe & Johnson
Cavell Management Services Ltd	International Insurance Management Services Ltd	Swiss Re
Chedid & Associates Ltd Reinsurance Brokers	Jones Day	Swiss Re Services Ltd
Converium AG	LIGS Ltd	Taylor Wessing
EMB Consultancy	Legal & General Group Plc	Thommessen Krefting Greve Lund AS
Endurance Worldwide Insurance Ltd	Lockton Companies International Ltd	Travelers
Faraday Underwriting	Managing Agency Partners Ltd	VOGT & WIIG AS
Fortis (UK) Ltd	Miller Insurance Services Ltd	Wasa Insurance Run-Off Co Ltd
Guardian Holdings Ltd	Nationale Borg	White & Case LLP
Guy Carpenter & Company GmbH	Norton Rose	Whittington Insurance Services Ltd
HSBC Insurance Brokers ltd	Now Training Ltd	Wurttembergische UK Ltd
Hannover Re	Pinnacle Insurance plc	nSpire Re

Continuing professional development

Solicitors Regulation Authority

This course is accredited for 11.50 CPD hours (CPD reference CSC/FALI).

General Council of the Bar

This course is accredited for 11.50 CPD hours.

Chartered Insurance Institute

This event has been accredited by the CII and can be included as part of your CII CPD requirement should you consider it relevant to your professional development needs.

Sponsorship opportunities

The Bermuda programme is still being developed and so this is an ideal time to be in at the start of this great opportunity to reach senior decision makers within the international reinsurance industry.

The sponsorship packages we have available are exclusive, flexible and supported by a global direct marketing campaign in print and on-line.

To find out more view our sponsorship page

Gordon Darling

Sponsorship and Partnerships Manager
Tel: +44 (0)20 7729 6677
For more information contact us now.