The RAA Re Contracts program continued on Wednesday and the calendar was packed with speakers who presented on an array of topics relating to the Reinsurance Contracts. Gerard Finley of Munich Re America kicked off the day with a presentation on Different Kinds of Reinsurance Contracts and Related Issues. The theme he emphasized appears to be one that runs throughout the conference, namely that “if it is open to interpretation, it is open to arbitration.” Mr. Finley’s presentation focused on ensuring that key active terms in the Reinsurance contract are always defined and that those definitions are consistently applied throughout the agreement so that there can be no disputes concerning their meaning down the road. His presentation was followed by an introduction to Special Contract Clauses by Douglas Rafrano of Aspen Re. Mr. Rafrano explored some of the more unique contractual provisions including reinstatement provisions, terrorism exclusions and hours clauses. Of particular interest was Mr. Rafrano’s discussion on the territory and hours clauses in relation to potential losses arising out of the recent earthquake in Japan.
Other presentations on Wednesday included “Is the Reinsurance Contract the Entire Agreement Even When it Says it is,” “Dispute Resolution Clauses,” and “the Structure of Lloyd’s.” The latter presentation gave a particularly informative overview of the Lloyd’s structure and its operations. In addition to presenting a comprehensive history of Lloyd’s, the presenters explained how Lloyd’s operates in the US and Bermuda and the potential tax ramifications for Lloyd’s syndicates operating in those jurisdictions.