Unlike the London market, it is not necessarily the case in the US that the “follow the form” clauses are used with “follow-the-settlements/fortunes” clauses.

5.03 In Aetna Cas and Sur Co v Home Ins Co 2 the District Court for the Southern District of New York clarifi ed that the “follow the form” clause is used to express the match between the reinsurance and insurance coverage. This principle is discussed in the following paragraphs.