Bibliography

Advanced Study Group of the Insurance Institute of London, Excess of Loss Reinsurance, Report by Advanced Study Group No 201, (Insurance Institute of London, March 1975).

Advanced Study Group of the Insurance Institute of London, Corporate Planning in the Insurance Industry, Report by Advanced Study Group No. 213, (Insurance Institute of London, 1982).

H.Ammeter, 'The calculation of premium rates for excess of loss and stop loss reinsurance treaties', in Non-proportional Reinsurance edited by S. Vajda, (Arithbel, SA, 1955).

Sir J.Arnould, A Treatise on the Law of Marine Insurance and Average, 2nd edition, (Stevens and Sons, 1857).

M.H.Atkins, 'Simulation models in risk management', in Handbook of Risk Management, editors R.L. Carter and G.N. Crockford, (Kluwer-Harrap Handbooks, 1974).

P.H.Bartrum, 'Solvency and profitability', in Policy, (December 1977).

R.E.Beard, T.Pentikllinen and E.Pesonen, Risk Theory, the stochastic basis of insurance, 2nd edition, (Chapman and Hall, 1977).

R.E.Beard, 'A mathematical model for motor insurance', in Mathematical Modelling, editors J.G.Andrews and R.R.McClone, (Butterworths 1976).

R.E.Beard, 'Three R's of insurance-risk, retention and insurance', in Journal of the Institute of Actuaries Students' Society, Vol 15, Part 6, (1959).

J-M.Bel\oy and A.Gabus, 'A model for measuring the impact of inflation on motor insurance business', in The Geneva Papers, No 1 (The Geneva Association, January 1976).

B.Benjamin, General Insurance (Heinemann, 1977).

S.Benjamin, 'Simulating mortality fluctuations', in Transactions of the XVII International Congress of Actuaries, Vol 1 (1964).

G.Benktander, 'The calculation of a fluctuating loading for excess of loss reinsurance', in The ASTIN Bulletin (1975, Vol VIII, Part 2, p.272).

G.Benktander, 'The effect of inflation on excess layers', in The Review (12 January 1968),

613

REINSURANCE

G. Benktander, 'The principle of stability clauses in excess of loss reinsurance', in Quarterly letter from the Nederlandse Reassurantie Groep, No XIX/75, (August 1974).

G. Benktander, 'An approach to credibility in calculating IBNR for casualty excess reinsurance', The Actuarial Review (April 1976).

G.Benktander, 'The underwriting of risks', in Papers presented to the Third International Reinsurance Seminar, (Reinsurance Offices' Association, 1977).

G.Benktander and T.W.Fowler, 'Calculated lag factors. How reliable are current methods in a trend situation?', Nordisk Forsikringstidsskrift (4/1980 Stockholm).

G.Benktander and C.O.Segerdahl, 'On the analytical representation of claims distributions with special reference to excess of loss reinsurance', in Transactions of the XVI International Congress of Actuaries, (1960).

D.L.Bickelhaupt, General Insurance, 9th edition, (Richard D.lrwin Inc., 1974).

D.B.Biggs and F.W.G.Martin, 'Permanent health insurance', in Handbook of Insurance, editor R.L.Carter (Kluwer-Harrap Handbooks, 1973 updated).

K.H.Borch, The Mathematical Theory of Insurance, (Lexington Books, D.C.Heath and Co. 1974).

K.H.Borch, 'An attempt to determine the optimal amount of stop loss reinsurance', in Transactions of the XVI International Congress of Actuaries, Vol I, (1960).

K.H.Borch, 'The optimal portfolio of assets in an insurance company', in Transactions of the XVIII International Congress of Actuaries, Munich (1968).

W.H.Borner, 'An appraisal of the alternatives to the practice of reciprocity in reinsurance', a Bolesaw Monic Fund prize essay abridged in Quarterly Letter of the Nederlandse Reassurantie Groep, No XVI/61 , March 1970.

R.D.C.Brackenridge, Medical selection of life risks (The Undershaft Press, 1977).

R.H.Brown and P.B.Reed, Marine Reinsurance (Witherby & Co, 1981).

H.Biihlmann, Mathematical Methods in Risk Theory (Springer-Verlag, 1970).

l.Butcher, 'Insurance mergers-their effect on professional reinsurers', Reinsurance (September 1971).

l.S.Butler, Punitive Damages and Reinsurance, Reinsurance Offices' Association (1977). Also see Reinsurance, Legal Correspondent, in this section.

R.L.Carter, editor, Handbook of Insurance, (Kluwer-Harrap Handbooks, 1973 updated).

614

BIBLIOGRAPHY

R.L.Carter, Economics and Insurance, 2nd edition (P.H. Press, 1979).

R.L.Carter, 'Insuring for the future', in Policy (December 1976).

R.L.Carter and G.M.Dickinson, 'Economic effects of restrictions on international trade in reinsurance', in Papers presented to the Third International Reinsurance Seminar at Cambridge, April 1977, (Reinsurance Offices' Association) .

R.L.Carter and G.M.Dickinson, Barriers to Trade in Insurance (Trade Policy Research Centre, 1979).

R.L.Carter and G.N.Crockford, editors, Handbook oj Risk Management, (Kluwer-Harrap Handbooks, 1975 updated).

F.de Carteret-Bisson, 'Contingency insurance', in Handbook oj Insurance, editor R.L.Carter (Kluwer-Harrap Handbooks, 1973 updated).

Chamber of Commerce of the US, Position Paper on International Insurance and Reinsurance (Chamber of Commerce of the US, 1972).

G.Clayton, British Insurance (Elek Books, 1971).

R.Colinvaux, The Law oj Insurance, 3rd edition, (Sweet and Maxwell Ltd, 1970).

W.C.Corbett, 'The insurance of aircraft and aviation risks', in Handbook oj Insurance, editor R.L.Carter, (Kluwer-Harrap Handbooks, 1973 updated).

R.M.Cyert and J.G.March, A Behavioural Theory oj the Firm (Prentice-Hall, 1963).

P .A.Dawson and M.Roberts, 'Credit Insurance', in Handbook oj Insurance, editor R.L.Carter, (Kluwer-Harrap Handbooks, 1973 updated).

G.M.Dickinson, 'Concepts of probability and risk', in Handbook oj Risk Management, editors R.L.Carter and N.A.Doherty, (Kluwer-Harrap Handbooks, 1975 updated).

G.M.Dickinson, 'International insurance transactions and the balance of payments' in The Geneva Papers No 6, (October 1977).

G.M.Dickinson, 'Risk and the law of large numbers', in Handbook oj Risk Management, editors R.L.Carter and G.N.Crockford, (Kluwer-Harrap Handbooks, 1974 updated).

P.G.M.Dickson, The Sun Insurance Ojfice 1710-1960 (Oxford University Press, 1960).

W.A.Dinsdale, Specimen Insurance Forms and Glossaries, 2nd edition, (Stone & Cox, 1963).

615

REINSURANCE

J.A.Dixon, 'Captive insurance companies', in Handbook of Risk Management editors R.L.Carter and G.N.Crockford, (Kluwer-Harrap Handbooks, 1974 updated).

J.Doomkamp, 'Natural perils: are we ready?' The Review, (18 March 1983).

J.Dougharty, 'The History of Life Reinsurance in Great Britain'-an unpublished paper available from Mercantile and General Reinsurance Co. Ltd.

G.O.Engels, 'A methodology for developing individual net retentions' in Net Retentions (Nederlandse Reassurantie Groep N. V., Amsterdam, 1981).

G.T.Foster, 'Some observations on life reinsurance' Journal of Institute of Actuaries, Vol LXXII, Part III (1946).

D.G.Friedman, 'Insurance and the Natural Hazards', in The ASTIN Bulletin, Vol. VII, Part I (December 1972).

Geneva Association 1982 confere~ce on 'Strategic planning for insutaIice: issues, methods and applications', Etudes et Dossiers, nos. 59 - 65, (1982/3).

K.Gerathewohl et ai, Reinsurance Principles and Practice, vols. 1 and 2 (Verlag Versicherungswirtschaft, Berlin, 1980).

D.E.W. Gibb, Lloyd's of London (Macmillan & Co., 1957).

H.Gingell, The application of electronic data processing to reinsurance business (Reinsurance Offices Association, 1981).

C.E.Golding, The Law and Practice of Reinsurance (Stone & Cox, 1%5 edition amended 1%8).

C.E.Golding, A History of Reinsurance (published privately for Sterling Offices Ltd, 1927).

R.C.Goshay, 'Captive Insurance Companies' in Risk Management, editor H.W.Snider, (R.D.Irwin Inc. 1964).

M.Greenberg, 'International Problems and Possible Solutions', a paper read to the International Insurance Seminar, San Francisco (1976).

M.R.Greene, 'Trends in American liability insurance', Sigma, (Swiss Reinsurance Company, September 1977).

M.Grossmann, Riickversicherung-eine Einfiihrung (Verlag Peter Lang, 1977).

F.E.Guaschi, Accident Excess of Loss: an actuarial approach to the rating problem (Mercantile and General Reinsurance Co. Ltd, 1%9).

F.E.Guaschi, Accident Excess of Loss (Mercantile and General Reinsurance Co. Ltd, November 1972).

616

BIBLIOGRAPHY

F.E.Guaschi, Accident Excess oj Loss (Mercantile and General Reinsurance Co. Ltd, February 1975).

F.E.Guaschi, 'Charting the financial course of a reinsurance company', in Papers presented to the Third International Reinsurance Seminar (Reinsurance Offices' Association, 1977).

F.E.Guaschi, 'Non-proportional reinsurance', Journal oj the Institute oj Actuaries Students' Society, Vol 19, Part 1 (1970).

H.E.Gumbel, 'Arbitration under reinsurance contracts' in Festschrift Jur Reimer Schmidt editors F.Reichert-Facilades, et al., (Verlag Versicherungswirtschaft E.V., 1976).

R.A.Handover, 'The London non-marine reinsurance market', The Journal oj the Chartered Insurance Institute, Vol 64 (1967).

G.Hickmott, Flixborough Disaster (Mercantile and General Reinsurance Co. Ltd, 1977).

E.R.Hardy Ivamy, General Principles oj Insurance Law, 4th edition, (Butterworths, 1979).

R.John, O.Patrick and J.Standard 'A practical procedure for evaluating excess of loss working cover reinsurance retentions' in Net Retentions, (Nederlandse Reassurantie Oroep N. V ., Amsterdam, 1981).

G.T.Jones, Simulation and Business Decisions, (Penguin, 1972).

P .M.Kahn, 'An introduction to collective risk theory and its application to stop-loss reinsurance' in Transactions oj the Society oj Actuaries, XIV (1962) Part I.

S.S.Kapoor, 'Standard costing in insurance companies', Policy Holder Insurance Journal, Vol 91, No 8 (23 February 1973).

S.Kroll, 'The past, present and future of non-admitted insurance in the United States' in Best's Review, Property/Casualty Edition (November 1975).

L. La Bianca, 'Reinsurance, private insurance and the state', in Post Magazine and Insurance Monitor (27th May 1976).

A.M.Lanzone, 'Punitive damages-insurer and reinsurer, adversaries or partners?' in Best's Review Property/Casualty Edition, Vol 78, No 9, (January 1977).

J.Lavers, 'Underwriting information and the non-proportional account' in Papers presented at the Third International Reinsurance Seminar, (Reinsurance Offices' Association, 1977).

N.Legh-Jones, MacGillivray and Parkington on Insurance Law, 6th edition, (Sweet and Maxwell, 1975).

617

REINSURANCE

Arthur D.Little, Inc., Prices and Profits in the Property and Liability Industry, (Report to the American Insurance Association, 1967).

H.Louberge, 'Reinsurance and foreign exchange risk', Geneva Papers on Risk and Insurance, no. 11 (1979).

C.S.S.Lyon, 'The establishment of adequate reserves for outstanding and IBNR claims', in Papers presented to the Third International Reinsurance Seminar, Reinsurance Offices' Association, 1977.

I.S.McGuinness 'Is "Probable maximum loss" (PML) a useful concept?' Proceedings of the Casualty Actuarial Society, vol. LVI, (1969).

I.S.McGuinness, 'Controlling the effects of catastrophies in insurance against floods and other elemental perils', Transactions of International Congress of Actuaries, vol. 4, (1957).

P.Madge, 'Products liability insurance' in Handbook of Insurance, editor R.L.Carter (Kluwer-Harrap Handbooks, 1973 updated).

J.G.March and R.M.Cyert, A Behavioural Theory of the Firm (Prentice-Hall, 1963).

A.Mayes, 'Captive companies updated', Policy Holder Insurance Journal, Vol 90 (22 September 1972).

G.F.Michelbacher and N.R.Roos, Multiple-line Insurers; their nature and operation, 2nd edition, (McGraw-Hill, 1970).

I.H.Miller, 'Aviation: UK under pressure', The Review (29 April 1983).

S.Miller, 'The intermediary in international reinsurance' in Papers presented at the International Reinsurance Seminar, (Reinsurance Offices' Association, 1973).

J.H.C.Morris, Dicey and Morris on Conflict of Laws. 10th edition, (Stevens, 1980).

Munich Reinsurance Co., The influence of inflation on insurance (Munich Reinsurance Co. 1971).

National Association of Insurance Commissioners, Measurement of Profitability and Treatment of Investment Income in Property and Liability Insurance, (National Association of Insurance Commissioners, 1970).

J.A.S.Neave, 'International reinsurance: changing patterns in economic relationship' in Policy (May 1976).

J.A.S.Neave, 'Current problems of the reinsurance market' in Policy Holder Insurance Journal, Vol 89 (5 February 1971).

618

BIBLIOGRAPHY

J.A.S.Neave, 'The development of government involvement in reinsurance underwriting', in Papers presented to the International Insurance Seminar, San Francisco, (1976).

J .A.S.Neave, 'Reinsurance today: a general survey' in Journal of the Chartered Insurance Institute, Vol 64 (1967).

J .A.S.Neave, 'Changes in Risk Bearing Capacity-the impact on Reinsurance Strategy', Papers presented to the Philadelphia World Insurance Congress, (1982).

Nederlandse Reassurantie Groep, 'Apportionment of liability excess of loss claims' Quarterly letter from the Nederlandse Reassurantie Groep, No XIX173 (December 1973).

Nederlandse Reassurantie Groep, 'Errors and Ornissions-a cautionary tale', Quarterly letter from the Nederlandse Reassurantie Groep no. XXIII/91, (March 1980).

Nederlandse Reassurantie Groep, IBNR, Prize Winning Papers in the Boleslaw Monic Fund Competition, Amsterdam, (1971).

Nederlandse Reassurantie Groep, 'Indexed annuities-apportionment of claims between cedant and reinsurer' Quarterly letter from the Nederlandse Reassurantie Groep, No XIX174 (May 1974).

Nederlandse Reassurantie Groep, 'Is individual excess reinsurance better than stop loss reinsurance?' Quarterly letter from the Nederlandse Reassurantie Groep, No XV/59 (July 1969).

Nederlandse Reassurantie Groep, 'The principle of stability clauses in excess of loss reinsurances-a brief outline' Quarterly letter from the Nederlandse Reassurantie Groep, No XIX175 (August 1974).

R.J.de Neree tot Babberich, 'What is one event?' Quarterly letter of the Nederlandse Reassurantie Groep, (December 1979).

P.M.North, Cheshire on Private International Law, 10th edition (Butterworths, 1979).

M.Parkington, et al., MacGillivray and Parkington on Insurance Law, 6th edition (Sweet and Maxwell, 1975).

'Problems of liability insurance' Post Magazine and Insurance Monitor (7 and 14 April 1977).

G.Rangarajan, The Theory and Practice of Reinsurance, (Singapore Insurance Training Centre, 1979).

H.E.Raynes, A History of British Insurance, 2nd edition, (Pitman, 1964).

619

REINSURANCE

R.C.Reinarz, Property and Liability Reinsurance Management (Mission Puolishing Co., 1969).

Reinsurance Legal Correspondent, 'Treaties: agreements to enter into future reinsurances?' in Reinsurance (March 1974). 'Looking at the reinsurance contract' in Reinsurance (April 1972). 'Compromise settlement' in Reinsurance (July 1970). 'Follow the fortune' in Reinsurance (October 1971). 'Contracts of Indemnity' in Reinsurance (August 1969). 'The intent of the parties' in Reinsurance (July 1972). 'Errors and Omissions clause' in Reinsurance (February 1970). 'Cut-through clauses are no short cut' in Reinsurance (November 1972). 'Winding-up and Set-off' in Reinsurance (May 1971). 'Are reinsurance agreements contracts of insurance?' in Reinsurance (February 1974). 'Agency-trade usages and customs' in Reinsurance (December 1970). 'Imputation of an agent's knowledge to his principal' in Reinsurance (July 1974). 'Direct punitive damages' in Reinsurance (January 1982).

Reinsurance: A Correspondent, 'Excess of loss rating science' in Reinsurance (January 1977).

Reinsurance Offices' Association, Definition of Estimated Maximum Loss (Reinsurance Offices' Association, 1974).

Reinsurance Offices' Association: Report by an International Sub-Committee of the Reinsurance Offices' Association, Indexed Annuities and the Reinsurer (Reinsurance Offices' Association, 1978).

Reinsurance Offices' Association, 1971 Monte Carlo Panel Discussion Papers (Reinsurance Offices' Association, 1971).

F.M.B. Reynolds and B.J. Davenport, Bowstead on Agency, 14th edition, (Sweet and Maxwell, 1976)

The Review, 'Dangers inherent in reciprocity systems' in The Review Vol LXIX (25 November 1938).

D.E.Richards, 'General principles of insurance taxation' Journal of the Insurance Institute of London, Vol 65 (1977).

J.Ripoll, 'UNCfAD and Insurance' in Journal of World Trade Law, Vol 8, No 1 (January: February 1974).

N.R.Roos and G.F.Michelbacher, Multiple-line insurers: their nature and operation, 2nd edition, (McGraw-Hill, 1970).

I.Rosenthal, 'Limits of retention for ordinary life insurance' in The Record, American Institute of Actuaries, Vol XXVI, Part I, No 73 (1947).

Royal Commission on Civil Liability and Compensation for Personal Injury, Report of the Royal Commission on Civil Liability and Compensation for Personal Injury, Vol 1 (HMSO 1978).

R.J.Sansom, 'Practical PHI' Journal of the Institute of Actuaries Students Society, (1977).

620

BmLIOGRAPHY

H.A.Simon, 'A behavioural model of rational choice' Quarterly Journal 0/ Economics (February 1'955).

H.A. Simon, 'Theories of decision-making in economics and behavioural science' in American Economic Review (June 1959).

D. Skurnik, 'A survey of loss reserving methods', Proceedings nfthe Casualty Actuarial Society, (1973).

A.l.Steeds, 'Life reassurance' in Journal 0/ the Institute 0/ Actuaries Students' Society Vol 12, Part 3, (March 1954).

E.Straub, 'IBNR-a difficult marriage between practice and theory', Proceedings of the First Meeting of the Contact Group 'Actuarial Science', editors F. de Vylder and M.l.Goovaerts, (1978).

P . Strickler , 'Rtickversicherung des Kumulrisikos in der Lebensversicherung' in Transactions 0/ the XVI International Congress 0/ Actuaries, Vol I (1960).

L.Sudekum, 'The intermediary in international reinsurance' Papers presented at the International Reinsurance Seminar (Reinsurance Offices' Association, 1973).

B.Supple, The Royal Exchange Assurance (Cambridge University Press, 1970)

Swiss Reinsurance Co. (UK) Ltd, 'International survey of regulations governing motor insurance' in Sigma, Swiss Reinsurance Co. (11-12 November IDecember 1977).

Swiss Reinsurance Company, A Reinsurance Manual of the Non-life Branches, 3rd edition revised, (Zurich, 1981).

A.Taylor, 'The property account-the truth, the whole truth and nothing but the truth' in Papers presented at the Third International Reinsurance Seminar (Reinsurance Offices' Association, 1977).

A.Taylor, 1.Lavers and G.W.Croton, 'Underwriting information and the non-proportional account', in Papers presented at the Third International Reinsurance Seminar (Reinsurance Offices' Association, 1977).

G. Taylor, A survey 0/ the principal results of risk theory. A note deposited with the Institute of Actuaries Library.

G.C.Taylor, 'Testing goodness of fit of an estimated run-off triangle', The ASTIN Bulletin, (1978).

K.R.Thompson, Reinsurance, 4th edition (The Spectator, 1966).

H.M.Tract, 'Accounting for reinsurance premiums by reinsurance brokers' in Best's Review Vol 78, No 8 (December 1977).

621

REINSURANCE

F.L.Tuma, 'The economics theory of reinsurance' in Journal oj the Insurance Institute oj London (1933).

UNCTAD, Reinsurance problems in developing countries, UNCTAD document TD/B/C.3/106/Rev. I, (United Nations, 1975).

UNCT AD, Insurance oj large risks in developing countries TD/B/C, (United Nations, July 1977).

H. von Urbanski, 'Reinsurance: Legend and Reality' in Die Industrie (July 1977) reprinted in The Review (26 August 1977).

M.Wolff, Private International Law, 2nd edition (Oxford Clarendon Press, 1950).

C.Worthington, 'Exchange rate fluctuations and their impact on reinsurance companies' , in Papers Presented to the Second Meeting oj Insurance Economists. (University of Nottingham, 1980).

C.Zwonicek, 'Swiss reinsurance', International Insurance Monitor, (April/May 1982).

622

Index

Aachener and Miinchener, 15 Accident insurance policies, earliest, II Accident reinsurance, 17, 391-425 Accounting procedures, 531-95

facultative, 532 inter-company, 531-67 internal, 571-95 management, 559-67, 572 shareholders, 571 standardized, 537 supervisory, 572

Accounts year, Ill, 200 Accumulations of losses, 350-51, 436-7 Acts of Parliament, etc

Act touching policies of assurance used among merchants (1601), II

Act to regulate insurance on ships belonging to the subjects of Great Britain and on merchandises of effects laden thereon (1746), 14

Arbitration Acts: (1950), 147; (1979), 147; US, 148

Bankruptcy Acts (1869; 1914), 145 Companies Acts: (1948),145; (1967),

345; (1948-81), 571 Employers' Liability Act (1969), 407 Insurance Companies Act (1982),

572 Life Assurance Act (1774), 120 Marine Insurance Act (1906), 80,

120121, 123, 151, 154 New York Insurance Law, 153 Rehabilitation of Offenders Act

(1974),125 Stamp Act (1891), 80 Statutory solvency regulations, 62 Third Parties (Rights against

Insurers) Act (1930), 140 Actuaries, 195, 481 Adjustable premiums, 195-6 Administration of reinsurance treaties,

52-3 Aggregating losses, 183-5, 331-2 Allianz, 40

American captive insurance companies, 33-4 fire insurance company, first, 12 law, 138, 139-40, 148, 153 reinsurance company, first, 18 reinsurance market, 39, 49, 52-3, 54

Annual loss expectancy formula, 173 Annuities, 186-7, 505-8

indexed, 213-8 Anyone risk limits, 166, 355-6 Arab Federation Pools, 20 Argentina, 19 Asian Reinsurance Corpn, 47 Atomic insurance pools, 20 Australia, 48 Aviation insurance, 232-3 Aviation reinsurance, 96, 458-63

Babylonian marine loans, (3000 BC), 1O-1l

Bankruptcy see Insolvency Beard, R.E., 318-20. 333 Benktander, Gunnar, 208-10 BIA see British Insurance Assn. Bimeh Markazi of Iran, 36 Blackburn, Low and Company, 152 Bonds, 400-402 Bonds, respondentia, II Borch, Karl, 176 Bordereaux, 235-6, 237-9, 398, 440-41

465, 498-9 specimen, 237

Bottomry, 11 Brazil, 19, 36 Breaches of duty, 128 Bretton Woods system of fixed

exchange rates, 100 Britain, reinsurance market in, 39, 54;

see also London British Columbia, 35 British fire tariff companies, claim

report, 238-9 British Insurance Assn (BIA), 537, 587 Brokerage, 53, 89

623

REINSURANCE

Brokers, 10, II, 20-21, 47-53 advantages of, 55-6 legal position, 149-54

Bruges Chamber of Assurance, 11 Burning costs, 33, 191,200-204,226;

see also Pure burning costs Business expansion, financing of, 68-9 Business interruption policies, 349 Buyers of reinsurance, 28-37

Caja Reaseguradora de Chile, 19 Canada/North America, 35, 39, 86,

541 Cancellation see Termination Cantonal insurance companies,

Switzerland, 35 Capacity, surplus treaties, 168-9 Captive insurance companies, 32-4 CAR see Contractors All Risks Cargo risks, 232 Cargo treaties, 434-5, 450-53 Cases of litigation and arbitration,

115-54 Case studies, fire reinsurance, 377-87 Catastrophe

cover, 180, 184, 185,291,360-67 potential, 192

Cazenove, Mr, 20 CEA see Comite Europecn Chamber of Assurance, Bruges, 11 Changes, underwriting policy, 238,

256-7, 260, 297 Chemicals, 349 Chile, 19, 605 Chinese insurance, primitive, 10 Claims

notification, 261-2, 299-301, 462, 499,548-53

payment, 265-6 Claims-commutation clause, 213 Claims costs, 61-5

stabilizing, 66-8 variability, 61-4, 66

Claims forms, 238-9" Claims negotiations, 263-4 Clean-cut termination, 280-81 Coded excess, 198, 358, 360 Coinsurance, 1215, 17,46,65 Cologne Reinsurance Company, 18 Combined classes of insurance, 251-4,

412-14 Combined treaties, 170-71

624

Comite Europeen des Assurances (CEA),537

Commencement of liabilities non-proportional treaties, 289-92 proportional treaties, 249

Commercial Union, 11 Commissions, 9-10, 63, 87-97

increase by reinsurer's results, 104-5 losses to extinction, 95 profit commission, 93-5, III sample clauses, 106-10 sliding scale/stepped scale, 90-93,

96-7 super profit commission, 96 three year average, 95

Common account, 183 Common law, 120, 121

rights waiver, 127-8 Communist bloc, nationalization, 18,

2g,35 Compagnie des Proprietaires Reunis

(Brussels), 15 Compagnie Nationale d' Assurances

(Paris), 15 Compagnie Royale, 15 Computer simulation models, 337-41 Conflict of laws, 148-9 Consumer prices index, 218 Contingency insurances, 399-400 Continuity, 193 Contracts

conditions, 241-3 disputes, 80 form of expression,

120-21, 133-8 legal principles, 115-55 reinsurance, as insurance, 116-17

Contractors' All Risks (CAR), 412 Control of liabilities, 166-7 Control systems, management, 54 Corporate planning, 593-5 Credit insurance, 402-3 Crop hail insurance, 181 Currencies

devaluation, 273 fluctuation clause, 218-19, 223, 224-5 foreign, 100-103, 539-42, 590-93

Darwin (Australia) flood disaster, 358

Delays in settlement of accounts, 52, 98,236

Department of Trade (DOT), 33, 44, 572, 582

Deposits, premium reserve, 302-3 Developing countries, 19, 35, 36, 65,

600 Development statistics, 191 Direct insurers

ceding of reinsurance, 42-3 need for reinsurance, 59-69 purchase of reinsurance, 28-32

Disclosure duty, 128 Disputes, 80, 146-8 DOT see Department of Trade Double insurance, 13 Downside risk, 62

Eagle Fire Insurance Company of New York, 15

EAR (Engineering All Risks), 411 Earthquakes, 64, 361 EEC see European Economic

Community EML (Estimated Maximum Loss), 323,

355, 356-7, 398 Employers' liability, 407-8 Engels, G.O., 340 Engineering, 411-12 English law, 116, 119, 120, 138, 153

difference from American, 139-40 Error clauses, 137, 260 Estimated Maximum Loss see Loss European Economic Community

(EEC), 128,334,571,605 Ex gratia settlements, 131, 239 Excess-of -average-loss cover, 181 Excess of loss treaties, 17, 64, 72, 99,

172-219 advantages, 172-6 disadvantages, 176-8 introduction, 16 specimen fire agreement, 305-9

Exchange control regulations, 546, 603-4

Exchange rates, 19, 100-103, 539-42 Exclusions, 346-7, 368-9, 395, 417-18,

434,475-6 Expected losses, 30

INDEX

Expenses, 192-3 loading, 206

Exposure rating, 358-60 Exposure units, interdependence,

336-40 'Extra-contractual obligations', 264

Facultative obligatory agreements, 76-7,240-3

Facultative reinsurance, 14, 16, 17, 73-5, 229-43 disadvantages, 231 legal requirements, 126

Failure see Insolvency Federal Arbitration Act (USCA), 148 FGU (From the Ground Up), 190 Fidelity Guarantee business, 249 Finance, reinsurance, 531-95 Financing business expansion, 68-9 Fire insurance

development, 11, 14-16 Fire Offices Committee (FOC), 15, 239 Fire of London (1666), 11 Fire reinsurance, 181, 345-87

types, 351-2 Fire surplus treaties, specimen clauses,

346-7 Fixed premium rates, 196-9 Flanders, Duke of (charter of 1310), 11 Flat premium, 194-5 Flixborough chemical plant disaster,

349 Foreign exchange rates/currency see

Exchange rates/currency Forms of reinsurance see Types FPA (Free of Particular Average), 232,

432,440 France, 35, 216

reinsurance legislation (1681), 13 Franklin, Benjamin, 12 'Free of Particular Average' (FPA),

232, 432, 440 Friedman,D.G., 336-40 'From the Ground Up' (FGU), 190

GATT (General Agreement on Tariffs and Trade), 605

General average, II General Reinsurance Group, 40

625

REINSURANCE

Geographical scope, 252-4 Geratewohl, R., 331 Germany, 48

West, 35, 37-8 Globe Compagnie d'Assurances contre

l'lncendie, 16 Good Record Returns (GRR), 89 Great Fire of London (1666), II Greek bottomry and respondentia

bonds, II Groups of insurance companies, 29-32 Group underwriting schemes, 31-2,

504-5 GRR (Good Record Returns), 89 Guarantee business, 15, 400-402 Guardian Royal Exchange, 15 Guaschi, F.E., 324-5, 333

Hand-in-Hand Fire Office, II Heath, Cuthbert, 16 Heckscher, Martin, 20 Heckscher and Gottlieb, 20 History of insurance and reinsurance,

10-21 Holland,48 Hours clauses, 361, 373 Hull risks

aviation, 468-71 marine, 232, 434-5, 447-50

IBNR (Incurred But Not Reported) claims, 191,547,550-51,578

ILU see Institute of London Underwriters

IMF see International Monetary Fund Imperial Fire, 15 INA Reinsurance Company, 39 Indemnity, principle of, 4, 129-33 Indexation clauses, 207-18

illustrated, 221-2 Indexed annuities, 213-17 Indian reinsurance market, 28 Inflation, 97-100, 207-18 Information supply, broker to

reinsurer, 50-52, 54 Information systems, 54 Ingosstrakh, 36 Insolvency, insurance companies,

protection against, 7-8, 59-65, 66,

626

140-44 technical vs. normal, 66

Inspection of records, 259-60 Institute of London Underwriters

(ILU), 53, 148, 538 Insurance

conduct of business, 5-7 direct, difference from reinsurance,

3-5 Insurance Companies Regulations

(1980),572 Insurance Company of North America

(lNA),39 Insurance Exchanges, 40 Insurance in practice, diagrammatic

representation, 60-61 Figs. 3.1-4 Insurance Institute of London, 187; see

also London Insurance Institute Insurance portfolios, 60 International conflict of laws, 148-9 International Monetary Fund (lMF),

97, 100 International reinsurance, 8, 100,

253-4, 599-611 markets 26-7, 40

Investment policy, 328-9, 550-51 Iran, 20, 36 Italy, early insurance practice, II

Japan, 48

Kolnische Riickversicherungs Gesellschaft, 18

Lander, West Germany, insurance corporations, 35

Language, reinsurance contracts, 133-8 Large numbers, law of, 162 Law see Legal principles Law Reform Committee, 128 Layers, 364-5 Leading companies, world's, 38

Table 2.2 Legal and General insurance group, 39 Legal principles, 115-55 Letters of credit, 544-6

Liability definition, 183-7 effect of indemnity principle, 141 marine, 435-6 nature and extent in proportional

reinsurance, 254-6 non-proportional, 292-7

Liberalization, 606-10 Life cover, early, II Life reinsurance/reassurance, 479-528

origins, 16-17 regulation of, 16-17 specimen treaties, 518-27 types, 483-94

Life Offices Assn., 587 Limitations

indemnity rights, 128-31 liability, 131-2, 166-7, 295-6, 361,

395 recovery rights, 132-3

Lines, 254-5 Liquidators, 143-4 Litigation precedents, lI5-55 Livestock, 403-5 Lloyd, Edward, 41 Lloyd's of London, lI, 26, 27, 29,

40-42 accident, 392 accounting, 538, 586 brokers, 20, 26, 48, 53, 55 Corporation of, 40 excess of loss, 16, 72, 392 marine, 232 premiums, 298

Lloyd's Insurance Brokers Assn, 148 Loading factor, 203-4, 205-6 Loans, marine, Babylonian, 10-11 London Assurance, 12 London Insurance Institute Advanced

Study Group, 187 claims development, 416, 550 marine, 443, 445-6 'one event' clauses, 362 war risks, 453

London reinsurance market, 25-7, 28 accident, 392 accounting, 53, 537-8 annuities, 215 aviation, 460, 461 brokers, 48, 53 marine, 433 underwriting agents, 44

INDEX

losses in non-proportional reinsurance, 290-92

Loss event, 294-5 Loss expectancy, 60, 67 Loss probability, 322 Loss settlement, 53 Loss variability, calculation equation,

30-31 Louis XIV (ordonnance of 1861), 13 McGuinness, l.S., 336-40 Management

accounting, 559-67, 572 objectives, 66 services, 10, 54-5

Marine insurance, lI, 12 Marine loans, Babylonian, 10-11 Marine reinsurance, 12-14, 96, 232-3,

429-56 Markets, 25-56

brokers, 47-53 buyers, 28-37 international, 26-7 Lloyd's, 40-42 national, 27-8 selIers, 37-47

Mercantile and General Reinsurance Company, 17, 18,39,314,315 Fig. 9.1

Mercantile risks, 353-4 Mergers between insurance companies,

29-32 Metropolitan Life Insurance Company

of New York, 491 Minimum and maximum premium

rates, 203-4 Minimum solvency margins, 9 Mixing classes of insurance, 252 Motor insurance, 405-7, 415-16 MPL (Maximum Possible Loss), 323,

355, 398 Munich Reinsurance Company, 38, 40

Nationalization, 18, 601 National pools, see pools National reinsurance markets, 27-8 NCB see No claims bonus Negotiations for reinsurance treaties,

52-3 Newcastle Fire Office, 15 New York Insurance Law, 153 Nigeria, 35

627

REINSURANCE

No claims bonus (NCB), 89, 199 Non-proportional reinsurance, 31,

72-3, 177,289-309 North America see Canada; American Norwich Winterthur Reinsurance

Company, 40

Objectionable phrases, 147-8 Objectives, management, 66 OECD (Organization for Economic

Co-operation and Development, 546, 605

Oil-rigs, 456 Omissions clauses, 137-8, 260 'One event', 294-5, 404 'One risk', 166, 355-6 OPEC (Organization of Petroleum

Exporting Countries), 429 Open covers, 76-7, 240-43 Operating results as percentage of

earned premiums, 61 Fig. 3.4, 64 Fig. 3.5

Operative clauses, 250-54, 292 Origins

insurance, 10-12 reinsurance, 12-21

Outstanding claims, 266, 279-81

Pakistan, 20 Paramount War Clause, sample, 474 Park, A System of the Law of Marine

Insurance, 13 'Payback' rating system, 364-5 Personal accident, 405 PHI (Permanent Health Insurance),

511-15 Philadelphia Contributionship, 12 Philippines motor pool, 20 Placing methods, 73-9

summary, 74 Fig. 3.7 Pleine propriete, 544 PML (Probable Maximum Loss), 323 Policy construction, 133-8 Policyholders' rights, 138-40

insolvency cases, 140-41 Policy Proof of Interest (PPI), 122 Policy Signing and Accounting Centre

(London), 53 Pools, insurance/reinsurance, 20, 37,

46-7, 77-9, 456, 500 see also Underwriting pools

628

Portfolio, insurance, 60 movement example, 281 original, 163 Fig. 5.1 retained, 163 Fig. 5.2 risk profile, 324-6, 336 size and composition, 62-3, 321-2 variability, 63-4

PPI (Policy Proof of Interest), 122 Practice, reinsurance, 59-112 Premium income, Lloyd's, 41-2

Table 2.3 Premium loading, 31, 66-7, 326-7 Premium rating, 189-206

calculations, 60, 260-61 equations, 6 fire reinsurance, 357-60 life reinsurance, 490-92, 494 methods, 194-206

Pricing of surplus treaties, 169-70 Principles of reinsurance, 59-112 Probability

of loss, 173, 175, 323 of ruin, 319, 327-8

Procedures in facultative treaties, 233-6 Product liability, 185, 408-9 Professional indemnity, 185 Profit commission, 199,442, 473 Proportional reinsurance, 31, 71,

247-86 commencement, 249-50 form, 247-8

Protection against insolvency see Insolvency

Prudential insurance group, 39 Pure burning costs, 200-204; see also

Burning costs

Questionnaires, sample, 374-6,419-25 Quota-share treaties, 71, 89, 98,

159-61,329,330-31,393-6

Railway Passengers Assurance Company, 17

'Rate on line', 364-5 Reassurance Agreement (1900), 17,

482-3,495,516-17 Reassurance Company of America, 18 Rebate systems, 205

Reciprocity, 16, 80-87 advantages, 81-2, 86 disadvantages, 83-7 marine, 432

Regional Co-operation for Development Pools, 20

Regional underwriting pools, 20, 46, 79 Regulations, 62, 68; see also Insolvency Reinarz, Robert, 332 Reinstatement, 369-71 Reinsurance

definition, 4 development, 10-21 difference from direct insurance, 3-5 functions summarized, 10 legal definition, 115-19 principles and practice, 59-112 purpose, 5-10, 59-69 technical role, 7-9 types, 159-226

Reinsurance, 132, 136, 151 Reinsurance companies, professional,

37-40 Reinsurance Company Ltd, 39 Reinsurance departments of direct

companies, 42 Reinsurance Institute of Brazil, 36 Reinsurance Offices Assn, 148, 323

International Seminar (1977), 188 Request notes, 234 Reserves, 31, 60, 68-9, 302-3, 542-6

retention, 266-70, 318, 326 Respondentia bonds, II Restrictions, international, 600-606 Retentions, 16, 65

fixing, 28-30, 313-41, 356-7, 508-10 summary, 335-6

Retrocession, 3, 16 Rhodes, laws of, II Risk factors, 7, 60-64 Risk-spreading, international, 8 Riunione Adriatica, 16 Roman insurance contracts, II Royal Exchange, 11, 12, 14, 15, 20 Russia (USSR), 36

Safety loading, 206 Sampling error, 60 Satellite insurance, 457 Scandinavia, 28 Schedule, 286

INDEX

Scope limitations, 166, 169, 181-3 Scottish life reinsurance, 16 Sellers of reinsurance, 37-47 Services, management and technical,

54-5 Set-off, 144-6 Settlement losses, 53 Simulation models, 337-41 Slips, 233-4

specimen, 235 Small insurance firms, 8-9, 65 Solvency margins, 9, 69, 334; see also

Insolvency South American reinsurance, 19 Specialist reinsurance companies, 17-18 Specialist underwriters, 27 Special records clause, 198 Specification of policy, 235 Spread of insurance losses, 8 Stability clauses, 207-18, 296

example, 220 Standard arbitration clause, 148, 155 Standardization of accounts, 537 Standards of practice, 16 State-owned or controlled corporations

insurance, 18-20, 28, 35-6,45-6, 65, 81

reinsurance, 18-20, 32, 35-7,45-6 Statistics, reinsurance, 546-59 Statutory solvency regulations, 62, 68 Sterling Offices Ltd, 21 Stop loss reinsurance, 64, 72-3, 176,

178-81 life, 492-4

Strickler formula, 490-91 Subsidiary companies, 42 Substandard lives, 65, 500-501 Success of reinsurance companies, 18,

19 Table 1.1 Sun Fire Office, 11-12 Sun Insurance Office, 14, 15 Surplus treaties, 71, 161-71,329-30

advantages, 161-4 disadvantages, 164-6 specimen agreement, 282-6

Swiss Reinsurance Company, 17,38, 40

Switzerland. 27, 35, 38 Syndicates, underwriting, 41

Taxation, 545-6, 586-90

629

REINSURANCE

Tax havens, 33 Technical services, 10, 54-5 Termination, 249-50, 271-81, 298,

303-4 Terms of original policy, 135-7 Theft,65 Third parties' rights, 140-41, 446-7 Time horizons, 333-4 TLO (Total Loss Only), 232, 432-3 Tonners, 433-4 Total Loss Only see TLO Treaties, 75-6

legal requirements, 126-7 Treaty documents, 52 Turkey, 20, 28 'Two risks' warranty, 357 Types of reinsurance, 69-79

summary, 70 Fig. 3.6, 74 Fig. 3.7

Uberrima fides/Uberrimae fidei see Utmost good faith

Umbrella cover, 182 UNCT AD (United Nations Conference

on Trade and Development), 19, 46, 79

Underwriters, specialist, 27 Underwriting

agencies, 43-5 capacity, increase of, 8, 64-5 covers, 184 excess of loss treaties, 187-9,414-16 fire reinsurance, 365-7 flexibility, 64 pools, 20, 37, 46-7 syndicates, 41

Underwriting year, 96, 112 Unearned premium reserves, 68 Union Insurance Company, 15 Union of Paris, 15, 20 United Nations see UNCT AD United States see American Unit-linked contracts, 503-4 Unusual risks, 65 USSR (Russia), 36 Utmost good faith (Uberrima

fides/Uberrimae fidei), 123-8, 188

Variable premium rates, 199-203 Victory Insurance Company, 39

630

War exclusions, 346-7, 453-4, 474-6 West Germany, 35 Winding-up, 144-6 Windstorms, 64, 361 Withdrawal of portfolio, 274-6 Wording of clauses, 137 Working covers, 184 Workmen's compensation, 409-10 World leading companies, 38 Table 2.2 World-wide treaties, 253