London ruling favors reinsurers.

National Underwriter Property & Casualty-Risk & Benefits Management, July, 1991 by Taylor, Sebastian

London Ruling Favors Reinsurers LONDON--An important legal judgment on the right of reinsurers to deny payments to cedents which were voluntarily made through arbitration pools--such as the Wellington Agreement and the Center for Claims Resolution--has been handed down by the High Court in London.

The Wellington Agreement was established in 1988 by a number of U.S. insurers in conjunction with Lloyd's underwriters to resolve on a voluntary basis the large number of asbestos claims entering the London market. The High Court's judgment confirms the legal opinion expressed in 1988 by Lord Wilberforce, a High Courtjudge, that a reinsurer is legally liable only for claims for which the original insured had legal liability. In 1988 Lord Wilberforce stated that...

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