PRINCIPLES AND RULES OF LAW APPLICABLE TO INTERNATIONAL REINSURANCE CONTRACTS

1. PRINCIPLES AND RULES OF LAW APPLICABLE TO INTERNATIONAL REINSURANCE CONTRACTS PRICL By: SERGIO RUY BARROSO DE MELLO sergiom@pellon-associados.com.br

2. Transnational Insurance Law: Principles of Reinsurance Contract Law (PRICL)

3. Introduction • The University of Zurich, with the support from the SwisNationalFunds, theAustrianScienceFunds and theGerman ResearchFoundation, created a groupofprestigiousexpertsworldwideto draft principles and rules oflawapplicabletoreinsurancecontracts, that are expectedto be convertedintoreferencetotheresolutionofconflictsbetweeninsurers and reinsurers at a global level. • The Project wasreferredto as PRICL (theabbreviationforPrinciplesofReinsuranceContractLaw), so thatweshalltakethelibertyto use thisexpressionherein.

4. Meaning of PRICL PRICL is a set of not-binding principles of private law that may apply to reinsurance contracts. Its purpose is to offer to the international insurance and reinsurance sectors some technical and legal elements that are able to provide legal certainty to contrating parties to reinsurance contracts.

5. Whyoptingfor PRICL? PRICLappears as a comprehensivesoftlawintegratedbyrelativelyuniformreinsuranceterms, and accompaniedbyexplanatorycommentsthatillustratetheapplicationthereoftotypical cases. Theoutcomeof legal disputes aboutthemeaningofthetermsunderreinsurancecontractsbecomesmuch more predictable, giventhatthepartiesoptedforPRICL as thelaw aplicable toreinsurancecontracts.

6. EFFECTIVENESS OF PRICL

7. Limitstotheeffectivenessof PRICL PRICLshall be effective, wheneverthepartiesbenefitfromitsautonomytoinsertitintoreinsurancecontracts. Whereastheterm “rules oflaw” alsoencompassesprovisionsotherthanthetraditionalones, PRICLshallappear as a qualified set of rules and principlesthat can be agreeduponbytheparties.

8. NON-MANDATORY RULES

9. PRICL provides a set of non-mandatory rules WheneverthepartiesoptforPRICL, theyshallnot be requiredtoagreeuponit in itswhole, being, instead, entitledtoalter itaccordingtotheirinterests, in thereinsurancecontractitself. ThisarisesfromthefactthePRICL isnotmandatoryat all. In addition, thepreambleofPRICLcontemplatessuchautonomyfortheparties.

10. USAGES AND CUSTOMS

11. Usages and customs In the light oftheprincipleoffreedomofcontract, theparties can agreeupontheapplicationofanyspecificusage. In thisrespect, usages and customs can be appliedtothecontractregardlessoftheirconformitytoPRICL, as thislatterensures and acknolwdgesthesovereignwishoftheparties. Whenevertheparties do notagreeupontheapplicationof a certainusageorcustom, PRICL shallrecognizesuchintention and shallprohibitthe use thereof.

12. Construction and complementationof PRICL PRICLshould be construedin the light ofitstext, ofitscontext, purpose and internationalfeature. Itspurposeistopromote contractual goodfaithwithinthereinsurance sector, the legal certainty in contractual relationships and a uniformapplicationofitsprinciples and rules. Nonetheless, theissuesencompassedwithinPRICLscopeofapplication are notexpressly resolved byit, but in compliancewiththeprinciplesfromthe aplicable local laworwiththeintentionmanifestedbythecontractingparties, as possible.

13. ParticipantstoPricl Leading members Heiss Helmut, Prof. Dr. University of Zurich  Schauer Martin, Prof. Dr. University of Vienna Schnyder Anton K., Prof. Dr. University of Zurich Wandt Manfred, Prof. Dr. University of Frankfurt am Main

14. ParticipantstoPricl Effectivemembers • Acanfora Rosaria Teresa (Generali France) • Sergio Ruy Barroso de Mello (Prof. Escuela Nacional de Seguros y Fundación Getúlio Vargas – Brasil) • Basedow Jürgen, Prof. Max-­Planck-­Institut, Hamburgo • Bell Christopher (Attorney - Sweden) • Bork Kevin (University of Frankfurt) • Carty Patrick Zurich (Global Life North America - General Counsel) • Cerini Diana, Prof. Universitàdegli Studi di Milano - Itália • Cousy Herman, Prof. University of Leuven - Belgiuma • Deighton Andrew (Qatar Re - Global Head of Claims) • Ebert Ina (Munich Re - Leading Expert Liability and Insurance Law) • Estrella Faria José Angelo (International Institute for the Unification of Private Law • (UNIDROIT), Secretary General • Felderer Christian (Chair Advisory Group Reinsurers) • Gal Jens, Prof. University of Frankfurt • Grau Juan Bataller, Prof. Universidad Politécnica de Valencia • Han Yong Qiang (National University of Singapore) • Horvath Adam (University of Vienna) • KozukaSouichirou (Gakushuin University) • KuitunenLari (Sampo Group Finland - Manager Reinsurance) • KullmannJérôme (Université Paris Dauphine) • Kuschke Birgit (University of Pretoria) • Lang Christian (Swiss Re - Senior Claims Expert, Property and Casualty • Business Management) • Loacker Leander (University of Zurich) • MarinacciAlessio (Universitàdegli Studi di Milano Bicocca) • Nakaide Satoshi (Waseda University) • Prickett Julie (AXA Global Life - General Counsel & Head of Compliance) • Pruitt John S. (Attormey – England) • Rouvray-­Kampe Melanie (Hannover Re - Senior Legal Counsel) • Schumacher Katrin (Hannover Re) • StalderPirmin (Zurich Insurance, Senior Legal Counsel) • Stempel Jeffrey W. (University of Nevada, Las Vegas) • Van der KlugtKees (Lloyd’s Market Association, Director Legal and Compliance) • Wedge Peter (Swiss Re - Senior Contracts Specialist) • William Oliver (University of Zurich)

15. ParticipantstoPricl InvitedMembers • Huicong Yu (China Re - London Office) • Klein Christopher (Guy Carpenter - Head of EMEA Strategy) • Klein Stefan (Munich Re - Senior Executive Manager, Claims Management) • Kunszt Zsuzsanna (AIG - Legal Counsel Switzerland and Austria) • Lee Young-­Bae (Korean Re - General Manager Oversea Department) • Maxl Gerd (Partner Re - General Counsel Global) • Newman Andrew (Willis Towers Watson - Co-­President, CEO Alternative • Strategies, Global Head of Casualty) • Schwer Dominic (SCOR - Senior Corporate Legal Counsel Life) • Wiegley Roger (Abogado) • Wiele Dana (RGA Re - Associate General Counsel, Global Legal Services) • Barry’ Ute (SCOR - Senior Legal Counsel) • Becker Michel (Generali France • Butten Christopher (Aon Benfield - Reinsurance Contract Specialist) • Cao Shunming (China Re, Chief Legal Officer) • Cho Patrick (Korean Re - Assistant Manager) • Clarke Malcolm A. (University of Cambridge) • Dalziel Helen (International Underwriting Association, Secretary of the • Technical Committee) • Dobiáš Petr, Dr. Charles (University Prague) • Goto Gen (University of Tokyo) • Goulder Nick (Willis Tower Watson - International Casualty Director) • Hengye Guan (China Re - Internal Control and Compliance, Legal Affairs • Department, Deputy Senior Manager)