ABSTRACT
The final chapter discusses the relation between the concepts of aggregation and follow the settlements. It presents the interrelations between an aggregation clause and the full reinsuring clause respectively the double proviso follow the settlements clause. Chapter 8 shows that–depending on the type of follow the settlements clause contained in the reinsurance contract–a reinsurer may be obliged to follow the settlements with regard to the identification of the individual losses by the reinsured in the underlying contract but it will never be obliged to follow the reinsured’s settlements with regard to the operation of an aggregation mechanism in the underlying contract.
