When Contracts Collide: Complex Reinsurance Programs (IRMI)

    23 June 2014

    In preparing our quarterly reinsurance newsletter, we came across a recent case in which the court was asked to construe a series of reinsurance contracts to determine whether the contracts should be viewed as one big contract or as separate and independent contracts with separate terms and conditions. One party asked the court to apply the so-called interrelated contracts doctrine, which requires separate writings to be read and interpreted together when they form part of the same transaction. In this case, the parties entered into a series of excess-of-loss reinsurance agreements and a series of reinstatement premium protection agreements.