Contract Wording Reference Book
Foreword & Disclosure
The Brokers & Reinsurance Markets Association ("BRMA") presents the reinsurance clauses contained in this publication for the consideration by members of the industry in the hope that use of some or all of these clauses in a reinsurance contract, as the parties to the contract may deem appropriate, will improve the clarity of the contract and the efficiency of the marketplace. In order to limit reasonably the number of variations of clauses representative of industry practice, it has been necessary to segment some clauses which the drafters may reassemble as they choose. Most of the clauses have been in use in the practice of the reinsurance business and no representation is made by BRMA as to the specific intent under a clause.
It is hoped that this Reference Book will be of considerable assistance to those who choose to use it, not only in the preparation of contract wording, but in reference on Placement Slips and Cover Notes. A word of caution to the user of this Contract Wording Reference Book. The various clauses used herein will differ considerably as to the terminology: i.e., Company, Companies, Reinsured or Reassured may be used to identify the Cedant; and Reinsurer, Reinsurers or Underwriters may be used to identify the Assumer. Likewise, the document may be called Contract, Treaty or Agreement. The use of these nouns and whether they are singular or plural could have a significant effect on the interpretation of the clause and accordingly, in using different nouns, care should be taken to adopt consistent usage.
ALTHOUGH IT IS BELIEVED THAT THE CLAUSES WILL BE USEFUL IN MANY INSTANCES, BRMA DOES NOT REPRESENT THAT THE CLAUSES ARE SUPERIOR TO OTHERS WHICH ARE IN USE OR WHICH MAY BE DRAFTED, OR THAT THE CLAUSES WILL BE SUITABLE IN EVERY INSTANCE OR ANY PARTICULAR INSTANCE. BRMA MEMBERS, LIKE OTHERS IN THE INDUSTRY, MAY USE OR REFRAIN FROM USING THESE CLAUSES AS THEY INDIVIDUALLY CHOOSE.
NONE OF THE CLAUSES PROVIDED HEREIN ARE ENDORSED, APPROVED OR RECOMMENDED BY BRMA AND BRMA MAKES NO REPRESENTATION AS TO THEIR LEGAL SUFFICIENCY OR COMPLIANCE WITH APPLICABLE LAWS OR REGULATIONS. BRMA HAS COMPILED THE CLAUSES IN THIS REFERENCE BOOK TO FACILITATE THE PREPARATION OF REINSURANCE CONTRACTS AND DOES NOT ASSUME AND SPECIFICALLY DISCLAIMS ANY LIABILITY WITH RESPECT TO THEIR USE.
Copyright 1990 Brokers & Reinsurance Markets Association, Inc.
A limited, non-exclusive license is hereby granted to those individuals who have downloaded this book from the bulletin board to make copies of the materials contained in this book solely for the purpose of, and to the extent necessary for, use of the materials by such individuals in their conduct of the business of reinsurance.
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