What Is A Reinsurance Trust Agreement

by lobo October 14, 2021  

The issues described above should be carefully considered in order to minimize the risk of litigation. Although the market is familiar with the negotiation and conclusion of reinsurance contracts, a number of legal issues arise when considering trust agreements that deserve special attention: this agreement (and any letter of credit that the retrocessionaire makes available to the entity or reinsurance trust agreement in accordance with Article 19 of this Agreement) and the service agreement constitute the entire agreement between to the parties in the context of the retrocession of the assigned agreement. Contracts.In event of any conflict between the terms of this Agreement and the provisions of any other document referred to herein, the provisions of this Agreement shall prevail. Each situation is different: some contracts, for example, provide for a reduction in the amount of guarantees recorded during the insurance year. Others require that the total amount of capital be accounted for for the entire year. The parties must therefore focus on the particular circumstances of their contract in order to reach an acceptable solution. 2. Duties of the Trustee: The Trustee will also endeavour to limit as far as possible the scope of his responsibilities: from refusing to verify whether securities deposited with the Bank actually fall within the definition of “eligible securities” (see point 4) to avoiding any obligation to inquire about instructions received from the parties […].

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