dr kyriaki noussia ll m ph d
Download
Skip this Video
Download Presentation
Dr Kyriaki NOUSSIA LL.M, Ph.D

Loading in 2 Seconds...

play fullscreen
1 / 22

Dr Kyriaki NOUSSIA LL.M, Ph.D - PowerPoint PPT Presentation


  • 99 Views
  • Uploaded on

XIIIth AIDA WORLD CONGRESS PARIS 2010 Reinsurance Working Party “Conflicts of interest faced by reinsurance brokers: the modern role of the broker and his duties.”. Dr Kyriaki NOUSSIA LL.M, Ph.D. 1. Introduction. Insurance, Reinsurance law Broker - agent of assured or reinsured

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Dr Kyriaki NOUSSIA LL.M, Ph.D' - lavada


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
dr kyriaki noussia ll m ph d
XIIIth AIDA WORLD CONGRESS PARIS 2010Reinsurance Working Party “Conflicts of interest faced by reinsurance brokers: the modern role of the broker and his duties.”

Dr Kyriaki NOUSSIA

LL.M, Ph.D

1 introduction
1. Introduction

Insurance, Reinsurance law

Broker - agent of assured or reinsured

- owes insured/reinsured

fiduciary and contractual duties.

1 introduction cont
1. Introduction (cont.)

HIH Casualty & Gen. Ins. Ltd v JLT Risk Solutions Ltd [2006]Lloyd’s Rep. I.R. 493

  • brokers who had expressly undertaken
  • to forward to their reinsured management reports of a third party
  • also owed a duty to alert and advise the reinsured
  • of any breaches of warranty by the assured.
1 introduction ctd
1. Introduction (Ctd.)

HIH Casualty & Gen. Ins. Ltd v JLT Risk Solutions Ltd

[2006]Lloyd’s Rep. I.R. 493

sparked concerns across insurance & reinsurance world

encompassed presumption

post-placement duty to alert insured/reinsured

as to any coverage concerns

applies not only in unusualcircumstances.

1 introduction ctd1
1. Introduction (Ctd.)

HIH Casualty & Gen. Ins. Ltd v JLT Risk Solutions Ltd [2006]Lloyd’s Rep. I.R. 493

Back-to-back context,

Brokers - should discuss with insured

before sending information to

reinsured,

- be alive to potential for conflict

- seek advice if concerned.

1 introduction ctd2
1. Introduction (Ctd.)

Similarly

Broker = not only agent of insured

also agent of insurer for certain

duties.

Thus

> agency relationship of double character

(broker - performs functions also for

insurer)

2 ongoing information duty of the broker
2. Ongoing Information Duty of the Broker
  • Rule

- responsibility to advise on operation of policy

Sarginson v Moulton (1942)73 Ll.L.R. 104;

Strong & Pearl v Allison & Co (1926) 25 Ll.L.R.

504;

King v Chambers & Newman [1963]2 Lloyd’s Rep.

130;

Victor Melik & Co Ltd v Norw. Un. Fire Ins. Soc.

[1980] 1 Lloyd’s Rep.523

2 ongoing information duty of the broker ctd
2. Ongoing Information Duty of the Broker (Ctd).
  • Rule (cont.)

- no general duty to monitor activities or insurance needs of assured while policy subsists

BUT

- duty of care may be owed

HIH Casualty & General Ins. Ltd v JLT Risk Solutions Ltd [2006]Lloyd’s Rep. I.R. 493

3 hih casualty general ins ltd v jlt risk solutions ltd
3. HIH Casualty & General Ins. Ltd v JLT Risk Solutions Ltd.
  • Held

First instance

Breach of continuing post-placement duty

Continuing post-placement duty

> to alert HIH to any potential issues of coverage

Not enough > for JLT to ONLY to pass on risk

management reports

3 hih casualty general ins ltd v jlt risk solutions ltd ctd
3. HIH Casualty & General Ins. Ltd v JLT Risk Solutions Ltd (Ctd).

Court of Appeal

  • upheld the Commercial Court judgment in all respects
  • whether broker owed duty of care to insured post-placement, & scope of duty, had to depend on the circumstances of the case
3 hih casualty general ins ltd v jlt risk solutions ltd ctd1
3. HIH Casualty & General Ins. Ltd v JLT Risk Solutions Ltd (Ctd.)
  • Commentary (Ctd).

Arguable:

- post-placement duty

to alert insured re coverage issues

applies

not only in unusual circumstances,

BUT

across the board

4 obligations of broker to the insurer
4. Obligations of Broker to the Insurer

Agency duty

  • owed by broker to insurer
  • entailedin functions brokers perform
  • unquestionable
  • if broker does not bring conflict of interest
  • if assured has given full informed consent

to broker acting in such function

Excess Life Ass. Co Ltd v Fireman’s Fund Ins. Co of Newark NJ [1982] 2 Lloyd’s Rep. 599s

Pryke v. Gibbs Hartley Cooper[1991]1 Lloyd’s Rep. 602.

4 obligations of broker to the insurer1
4. Obligations of Broker to the Insurer

Where insurance broker:

  • duty to report facts to underwriter
  • failure to report = detrimental
4 obligations of broker to the insurer2
4. Obligations of Broker to the Insurer

Practical operation of London Ins. Market

Brokers > carry out functions for both

parties of ins. transaction

[The Zephyr] [1984]1 Lloyd’s Rep. 58

5 other jurisdictions
5. Other Jurisdictions

Continental jurisdictions (Greece, Germany)

Post-contractual information duties

> regulated in complex of insurance contract law.

Germany - s.6 § 1.1. Regulation on Duties of Information

Relating to Insurance Contracts

Greece- 1997 Insurance Law, Civ. Code, art. 224 et seq.

5 other jurisdictions ctd
5. Other Jurisdictions (Ctd).

German Law - broker has information duty

pre-contractually

- bears post-placement information

duty

- bears all duties that any representative would

have under general contract law

(§ 181 BGB, §19 VVG).

Also – duty to inform the insurer of any alteration in risk’s

nature

- obligation to collect the premium and payments on

behalf of the insured.

5 other jurisdictions ctd1
5. Other Jurisdictions (Ctd).
  • Greek Law

Insurer- broker relations:regulated mainly by:

  • Law 1569/1985
  • Minister’s Decision (Min. for Commerce)K3/1377/18-2-1994
  • Presidential Decree 190/2006.
5 other jurisdictions ctd2
5. Other Jurisdictions (Ctd).

Most usual obligation

  • de lege: payment of commission to broker by insurer for conclusion of

task of effecting insurance contract

Also usual:

  • by special separate contractual agreement,

other obligations are being agreed

(e.g. collection of premium by broker on behalf of insurer,

exact insurance risks undertaken by him & resulting duty of care owed to insurer way and amount of damages (may be) owed for breach of duty the way agreed for broker to give account for actions)

6 conclusions
6. Conclusions.
  • Arguable

if post-placement duty to alert insured

(coverage issues)

applies always in all circumstances

6 conclusions ctd
6. Conclusions (Ctd).

Re back-to-back insurance:

  • brokers to discuss matter with insured

before sending information to reinsured

6 conclusions ctd1
6. Conclusions (Ctd).

Traditional broker’s role - agent of assured

Exception - brokers have also obligations

vis-à-vis the insurer

slide22
XIIIth AIDA WORLD CONGRESS PARIS 2010Reinsurance Working Party “Conflicts of interest faced by reinsurance brokers: the modern role of the broker and his duties.”

Thank you for your attention !

ad