ABSTRACT
This chapter attempts to ascertain how the Law Commissions’ proposals as set out in the First Consultation Paper on the reform of insurance law may apply to reinsurance. In attempting to apply the Law Commissions’ proposals to reinsurance, it became apparent that the earlier article assumed a simple scenario where the assured dealt directly with the broker who placed the risk with the insurers. The Law Commissions’ proposals modify this position by providing that the statement has to be relevant to reinsurance risk (RR) by reference to a prudent reinsured test and that RR cannot avoid if reinsured acted reasonably and honestly. In attempting to apply the Law Commissions’ proposals to reinsurance, it became apparent that the earlier article assumed a simple scenario where the assured dealt directly with the broker who placed the risk with the insurers.
