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REINSURANCE CONTRACT WORDING
INTRODUCTION
MINDY POLLACK Vice President, Claims NAC REINSURANCE CORPORATION	1	THE REINSURANCE CONTRACT—page1 The Reinsurance Business and Agreement. Emerging Issues: Dispute Resolution, Coverages, Regulation (State and Federal), Insolvency, and General Wording.
MARILYN LAUGHLIN Assistant Vice President CNA REINSURANCE GROUP	2	GENERAL CLAUSES FOR MOST TREATIES--40 Eighteen clauses for underwriting, financial, and legal considerations, including Pollution and Seepage Exclusion, Self-Insured Obligations, Special Termination, Funding of Reserves, Commutation, Offset, and Insolvency, with fifty-three sample clauses.
TREATY REINSURANCE
R. MICHAEL CASS, CPCU President R.M. CASS ASSOCIATES	3	QUOTA SHARE--110 Seven clauses, including Business Covered, Limit and Retention, Definitions, Premium and Commission, Reports and Remittances, Loss Notices and Settlements, Errors and Omissions, and thirty-two samples.
MICHAEL HOLLENBACH Vice President and Principal TOWERS PERRIN REINSURANCE	4	SURPLUS SHARE--140 A seventeen-question checklist and twelve clauses to use in making a contract, including thirty-seven sample clauses, such as Assumption of Portfolio, Term (runoff v. cutoff, location of ceding company v. risk location, and losses extending beyond the contract period), Cessions and Limits, Method of Cession, Losses Excess of Policy Limits and Extra Contractual Obligations, and Follow the Fortunes and Original Conditions, with thirty-seven samples.
SARAH J. PETERSON, J.D., CPCU Vice President, Contract Department AMERICAN REINSURANCE COMPANY BERNICE GORDON, J.D. Assistant Vice President and Manager, Contract Department FOLKSAMERICA GROUP	5	CLAUSES COMMON TO EXCESS OF LOSS--204 Ten clauses, including Ultimate Net Loss and Retained Lines, Occurrence (coverage theories, treaty applications), Joint Account, Subrogation and Salvage, and Warranty, with thirty-five sample clauses.
WILLIAM H. EYRE, CPCU Retired Executive Vice President INTERE INTERMEDIARIES, INC.	6	PROPERTY PER RISK EXCESS OF LOSS--244 Seven clauses, including Retention and Limit, Ultimate Net Loss, Rate and Premium, and a Variation of Property Per Risk: The "Combination" plan, with fourteen sample articles and alternatives.
RICHARD M. SHAW Assistant Vice President and Associate General Counsel RELIANCE INSURANCE COMPANY	7	CASUALTY EXCESS OF LOSS--271 Sixteen clauses and issues, including Coverage Trigger and Date of Loss, Aggregate Extension and Aggregate Extraction, Reinstatements and Loss Caps, Annual Aggregate Deductible and Loss Corridor, Structured Settlement Ramifications, and ninety-one sample clauses.
GERALD A. SPORE, CPCU Retired Senior Vice President KEMPER REINSURANCE CORPORATION	8	CATASTROPHE EXCESS OF LOSS--358 Eight clauses, including Limit and Retention, Reinstatement, Definitions of Occurrence, Two-Risk Warranties, and Exclusions, with twenty-four samples.
PATRICK J. MCFADDEN Senior Vice President TOWERS PERRIN REINSURANCE	9	AGGREGATE EXCESS OF LOSS AND STOP-LOSS--394 An eighteen-question checklist and seven clauses to create an aggregate contract, with sixteen sample clauses.
FACULTATIVE REINSURANCE
THOMAS M. TOBIN Senior Vice President, General Counsel and Corporate Secretary SKANDIA AMERICA GROUP	10	THE FACULTATIVE CONTRACT--426 Formation and Declarations: Location, Reinsurer’s Limit, Term and Effective Date. Reinsuring Agreements and Conditions: Agreements, Liability, Retention, Bases of Reinsurance, Claims, Cooperation of the Company, Insolvency, Taxes, Offset, Prior Effectiveness, Cancellation, Intermediary, Arbitration. Thirteen sample clauses.
SPECIALIZED LINES
JOHN K. WITHERSPOON, JR., CPCU Vice President GLOBAL CAPITAL REINSURANCE LTD.	11	OCEAN MARINE REINSURANCE--450 Classes: Cargo, Hull, Builders Risks, Protection and Indemnity, Offshore Oil and Gas Exploration. Characteristics: judgement-rated, underwriting facilities, implied conditions, and unusual language. Clauses Treated Differently in Ocean Marine Reinsurance Contracts: Exclusions, Limits, Commencement and Termination, Follow the Fortunes, Ultimate Net Loss, Right to Reinsure, Premium and Commission, Profit Commission, Arbitration, Service of Suit, Special Termination. Twenty-one sample clauses.
D. ROBERT MARSDEN, JR. Vice President CARVILL AMERICA	12	AVIATION REINSURANCE--484 Characteristics: the market, interests, exposures, types of cover. Clauses: Business Covered, Amount of Cover, Attachment and Termination, Premium and Commission, Portfolio Transfer, Loss Adjustment Expenses, Subrogation and Salvage, Definition of Occurrence, Aggregate Extension, Interlocking, Loss in Excess of Original Policy Limits and Extra Contractual Obligations, Aviation Grounding Liability, Loss Settlements, Underlying Recoveries. Exclusions: Assumed Reinsurance, War and Hijacking, Seepage and Pollution, Nuclear Incident. Summary. Forty-one sample clauses.
RICHARD S. SKEWES Vice President GENERAL REINSURANCE CORPORATION	13	SURETY, FIDELITY, AND FINANCIAL GUARANTEE BONDS--522 Determining Net Retention, Accumulation of Exposures, Cosuretyship, Allocation of Reinsurer’s Liability, Exclusions and Special Acceptances, with reasons to enter or avoid the market, and thirteen sample clauses.
JACK R. SCOTT Senior Counsel CIGNA CORPORATION	14	LIFE REINSURANCE--560 Characteristics. Clauses: Insolvency, Offset, Parties to the Agreement (Privity of Contract), Claims Expenses and Extra Contractual Damages, Recapture, Errors and Omissions, Liability. Summary, including eleven sample clauses.
OTHER ASPECTS
JOHN F. LANGEN Senior Vice President ALEXANDER REINSURANCE INTERMEDIARIES, INC.	15	SPECIAL CLAUSES AND ENDORSEMENTS--582 Follow the Fortunes, Losses in Excess of Original Policy Limits, Extra Contractual Obligations, Aggregate Extension, Interlocking, Guaranty Agreements (Cut-Through Endorsements). Twenty-three sample clauses.
JEAN F. (Jeff) WEBB IV, CPCU, Retired Senior Vice President and Director, Property Treaty Department PRUDENTIAL REINSURANCE COMPANY	16	PRICING--620 Commission clauses (Flat, Contingent, Sliding Scale), Rating and Premium (rating bases, types of rates), Funded Covers, Reinstatement, with improved wordings and twenty-seven samples and calculations.
ROBERT F. SALM (1921-1987) Retired Assistant Vice President CONTINENTAL CASUALTY COMPANY	17	RETROCESSION--672 Adaption of Retrocession to clauses such as Exclusions, Warranties, Definitions, Aggregate Excess and Stop-Loss, Aggregate Extension, Interlocking, Aggregate Extraction, Arbitration. Caveats: Restrictive Conditions, Extra Contractual Obligations, Excess of Policy Limits, Contingent Commission Problems, Aggregate Extension Coverage, Claims-made Coverage, Common Cause Losses.
CHARLES E. HEIDEN Retired Vice President in Charge of the Treaty Department SULLIVAN PAYNE CO.	18	CONTRACT DRAFTING TECHNIQUES--702 For a logical sequence of articles, twenty-four are given for an excess agreement, twenty-six for a share, with refinements suggested for all. A review of several hundred reinsurance contracts produced fifteen most frequently observed mistakes, arranged as a checklist.