Insurance was issued by a pool of insurers. One company failed to meet its obligations, and the court had to decide how the defaulted payment was to be contributed from other pool members and the re-insurers. The parties had thought that the risks were merely of run-off liability, but the risks had been massively increased by asbestos claims in the US.
Held: The risks covered by the re-insurance related to business written through one syndicate, and did not relate to the instant risks which arose from insolvency. The re-insurance did not cover the obligation to meet the contribution expected from the insolvent pool member. The appeal failed.
Judges:
Lady Justice Butler-Sloss Lord Justice Brooke Lord Justice Aldous
Citations:
[1999] EWCA Civ 934
Jurisdiction:
England and Wales
Insurance
Updated: 12 April 2022; Ref: scu.145848