Changes

The House of Lords has finally resolved the question whether reinsurers, whose reinsurance was for a three year period, should be liable only for property damage occurring during that three year period or for the whole of its reinsured’s loss, relating to over forty years’ worth of damage caused by the insured. The Court of Appeal had held that the reinsurers’ liabilities were not so limited, because the reinsurance wording relating to the period of cover had to be given the same meaning as that in the insurance, as determined by the Supreme Court of Washington. The House of Lords has now rejected this view.

A further note on this case is available @ [[http://www.onlinedmc.co.uk/index.php/Lexington_Insurance_Company_v_AGF_Insurance_Limited]]