Under UK law, a reinsurance broker may assert a lien over claim proceeds for premiums for reinsurance coverage paid by the party's broker, but not reimbursed by the reinsured. Heath Lambert Ltd. v. Sociedad de Corretaje de Seguros, [2006] EWHC 1345 (June 9, 2006).
UK Court Opinions
UK Court finds lack of authority for reinsurance agreement
The UK Commercial Court has held that a reinsurer is not bound by a contract signed by an agent, supposedly on its behalf, due to the lack of authority to do so, rejecting contentions that the agent had ostensible authority to do so, or that the reinsurer had ratified the contract. ING Re (UK) Limited v. R & V Versicherung AG, [2006] EWHC 1544 (Commercial Court June 29, 2006).
UK scheme of arrangement binding on non-UK insurers
A UK judge has ruled that he has jurisdiction over non-UK insurance companies to administrer and complete the runoff of a Willis Group-managed insurance/reinsurance pool under the UK's scheme of arrangement process. In re Sovereign Marine, [2006] EWHC 1335 (High Court Chancery Division June 9, 2006).
UK Court of Appeals speaks on the materiality standard for contract avoidance
In North Star Shipping Ltd v Sphere Drake Insurance Plc, [2006] EWCA Civ 378 (April 7, 2006), the UK Court of Appeals stated that when a party seeks to avoid insurance on the basis of the non-disclosure of a “material circumstance,” a material circumstance “is one that would have an effect on the mind of a prudent insurer in estimating the risk and it is not necessary that it should have a decisive effect on his acceptance of the risk or the amount of premium to be paid.” Id., paragraph 18.
UK – broker’s post-placement duty
In HIH v. JLT Risk Solutions Ltd., [2006] EWHC 485 (Comm. Mar. 15, 2006) the High Court discussed circumstances under which a broker owes an insured a duty to advise it of facts material to the risk which occur after the placement of the insurance.