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Article: Define Critical Terms Or Have The Court Define Them For You.(General Reinsurance Australia Ltd V HIH Casualty & General Insurance Ltd in liq 2009 NSWCA 22 )
- Article from:
- Mondaq Business Briefing
- Article date:
- November 2, 2009
- Author:
CopyrightCOPYRIGHT 2009 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Undefined terms in a reinsurance treaty led to a broad interpretation of the words "Trade Credit" that resulted in the reinsurer, General Reinsurance Australia Ltd (Gen Re) being liable for its share of a claim that it maintained was not intended to be covered by the treaty.
McDougall J in the NSW Supreme Court had found that Gen Re, as reinsurer, was obliged to pay HIH Casualty & General Insurance Ltd (in Liq) (HIH), the reinsured, sums under a quota share reinsurance treaty in respect of a class of insurance described in the slip as "Trade Credit and Export Credit". The NSW Court of Appeal upheld the primary judge's decision and confirmed that the reinsurance ...