Reinsurance

A contract of reinsurance is “one by which an insurer procures a third person to insure him against loss or liability by reason of such original insurance.”[1]

Except as otherwise provided under automatic reinsurance treaties, a reinsurer who obtained reinsurance is required to communicate all the representations of the original insured, as well as all  the knowledge and information he possesses, whether previously or subsequently acquired, which are material to the risk.[2]

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Loss in Insurance and Notice of Loss

Except as otherwise provided in the case of life insurance, a stipulation prohibiting the transfer of the claim of the insured against the insurer after the loss has happened is void if such conveyance was made before the said loss.[1]

Insurer liable for a loss of which a peril insured was proximate cause

Unless otherwise stipulated in the policy, the insurer is liable for a loss which a peril insured against was the proximate cause even if the peril not contemplated by the contract may have been the remote cause of the loss.[2] Conversely, the insurer is not liable for a loss which the peril insured against only a remote cause.[3]

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Representation in Insurance

A representation may be oral or written.[1] It may be made at the time of or before the issuance of the policy.[2] In the interpretation of a representation, the same rules as the language of contracts in general will be followed.[3]

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