Page 310 - Reinsurance Management IC85

Reinsurance Management

Errors and omissions
These are included to cover post-contractual relations
between reinsured and reinsurer, and stipulate that
they shall be rectified immediately upon discovery.

Inspection of records
This clause provides the reinsurer with rights to
inspect all records of the underlying insurer in order
to ensure premiums have been ceded correctly and
claims reserves are being adequately maintained.

Communications
If a reinsurance is placed by an intermediary, this
clause stipulates that all correspondence should pass
via that intermediary.

Special cancellation
This is also called the 'sudden death' clause, and it
allows the reinsurance agreement to be immediately
terminated by either party due to a major change or
alteration either in the parties to the agreement or to
the commercial and/or political background.

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