In BP PLC v. AON Limited, [2006] EWHC 424 (Comm. Mar. 12, 2006), the UK High Court of Justice discussed the circumstances under which a sub-broker owes a duty of care to the insured in the declaration of projects to effect insurance under an open cover arrangement.
Arbitration / Court Decisions
UK – Lloyd’s underwriters have right to documents
The UK Court of Appeal has held that a Llloyd's underwriter who returned to their insured's broker all of the documents shown to them in the placing of reinsurance and making claims have a right to view those documents when needed, despite the lack of contractual privity between them. Goshawk Dedicated Ltd. v. Tsyler & Co., [2006] EWCA Civ 54 (Feb. 7, 2006).
UK – Lloyd's underwriters have right to documents
The UK Court of Appeal has held that a Llloyd's underwriter who returned to their insured's broker all of the documents shown to them in the placing of reinsurance and making claims have a right to view those documents when needed, despite the lack of contractual privity between them. Goshawk Dedicated Ltd. v. Tsyler & Co., [2006] EWCA Civ 54 (Feb. 7, 2006).
UK – Duty to disclose, misrepresentation and avoidance of reinsurance
The London Personal Accident Reinsurance market experienced underwriting difficulties and spirals in the latter half of the 1990s. In an extensive opinion, a UK Commercial Court judge found that problems in this market were caused largely by undisclosed gross loss making underwriting, in which the reinsurance brokers had a prominent role. Sphere Drake Insurance Limited v. Euro International Underwriting Limited, Stirling Cooke Brown Reinsurance Brokers Limited, et al., 2003 EWHC 1636 (High Court of Justice, Queens Bench Division Commercial Court July 8, 2003).
UK – Duty of disclosure and avoidance of reinsurance
Appeal of decision with respect to attempted avoidance of reinsurance, with an extensive discussion of the duties of disclosure and the underwriting process. Court of Appeals held that a reinsured under an excess of loss reinsurance agreement did not owe its reinsurers an implied duty of care to underwrite ceded risks in a prudent manner. Available at Bonner & Ors v. Cox & Ors, 2005 EWCA Civ 1512 (Court of Appeal Civil Division December 8, 2005).