The following Insurance & Reinsurance practice note Produced in partnership with Rupert Warren of Holman Fenwick Willan and Celia Richardson of Holman Fenwick Willan provides comprehensive and up to date legal information covering:
In the context of insurance and reinsurance, ‘allocation’ is the determination of which insurance policy a loss or part of a loss is covered by.
In most insurance claims, the issue does not arise. If a driver crashes his car, his automobile insurance policy in place as at the date of the crash will respond. However, in the minority of cases where the issue does arise, it can be very significant both in relation to a (re)insurer's ‘inwards’ liability and the availability of its ‘outwards’ reinsurance.
take for example, a company which employs an employee for 40 years. Throughout those 40 years, the employee is exposed to asbestos and, following his retirement, develops mesothelioma and dies. His estate sues his former employer. The company had workers compensation/employers' liability insurance in place throughout the period of the employee's employment on annual, but which policy, if any, should respond to the claim?
what about an insurance company which insures a power station that burns down? The insurer has prudently purchased facultative reinsurance covering the risk in question and treaty reinsurance covering all of its power station risks, but which responds and in what order? There is unlikely to be an issue as to the relevant policy period, but the reinsurers will both argue that the other's policy should take priority
These, and other, thorny issues are covered in
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Fraud by false representationFraud by false representation applies to a broader range of conduct than the offences under the preceding legislation (the Theft Act 1968 (TA 1968)). No gain or loss need actually be made, and no deception need operate on the mind of the deceived for the Fraud Act 2006
When is quantum meruit and quantum valebat relevant?Claims in quantum meruit (value of services) and quantum valebat (value of goods) arise in diverse situations ranging from where contractual terms are silent on issues of payment to where there is no contract at all (Serck v Drake & Scull).General
This Practice Note examines:•why negative pledge clauses are used in commercial transactions •the consequences of breaching negative pledge provisions•how negative pledges are viewed in the context of security and quasi-security, and•key considerations when drafting a negative pledge clauseWhere
Source of the doctrine of the separation of powersThe origins of the doctrine are often traced to John Locke’s Second Treatise of Government (1689), in which he identified the 'executive' and 'legislative' powers as needing to be separate.‘… it may be too great a temptation to human frailty, apt to
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.