In Reinsurance, the Contract Wording Should Control

selective focus photo of terms and conditions written on a paper
Photo by RODNAE Productions on

In some reinsurance disputes, there is often tension between the words of the reinsurance contract and what one of the parties say they intended to reinsure. On the one hand, a reinsurance agreement is a contract and, in court, is enforced like any other contract based on the plain and unambiguous contract language. On the other hand, reinsurance traditions rely on custom and practice and some reinsurance contracts provide that the agreement should be interpreted as an honorable engagement and not merely as a legal obligation.

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