Promises
A statement in a reinsurance contract requiring the Cedent to report claims in a timely manner to reinsurer is an example of a...
Warranty
From Latin for “make alike,” this term means an exact copy, but in the office, it refers to an archaic machine that once trilled and whirled out blurry documents at all hours of the day.
Facsimile
This clause basically says, “If it’s not written down in the contract, it doesn’t count.” So no, that text message doesn’t make it official.
Entire Agreement Clause
What does the court do for the injured party?
A legal remedy is the outcome a court provides to address a legal wrong — either by compensating, restoring, preventing, or punishing.
This term is the modern stand-in for “warranty.” The Company shall purchase or be _____ to have purchased inuring excess reinsurance to limit its loss subject hereto from any one insured to $5,000,000.
"Deemed" or deemer language
This Latin terms means “from the beginning” and it’s lawyer-speak for treating a contract as if it never existed at all.
Ab-initio
This term gives one party the power to say, “Here’s what counts as a single loss”—after the dust has settled.
Sole judgement
These damages aren’t about fixing the problem—they’re about sending a message about bad behavior through a financial punishment.
Punitive damages
An insurance policy includes a statement stating the policyholder will keep a trained guard dog on duty during off hours at the plant (warranty). The policyholder accidently leaves Oliver, a 12-year old ragdoll cat instead of Bruno, a expertly trained German Shepherd, and the plant is burglarized. Failure to leave Bruno at the plant may be considered this a ...
Breach of Warranty
When a massive, unforeseen event like an earthquake or flood disrupts normal business, this French term can excuse parties from their obligations due to circumstances beyond their control.
Force Majeure
In the AXA vs Field case, the House of Lords applied a more narrow application to the word event and stated than an “event” has to pass this test: “something that happens in a particular time, at a particular place, in a particular way.” What is this test called?
Unities test
These damages cover the direct hit—like replacing the broken window, not the emotional trauma of watching it shatter.
Compensatory damages
This may happen if you breach a warranty
The contract may be voided
1 This Latin term refers to what happens in reality or in practice, even if it lacks legal authority. It means "in fact". 2. Literally "from law"; something that is established in law, whether or not it is true in general practice.
De facto & De Jure
What word may clients decide to use in property contracts instead of “event” because of the unities test?
Catastrophe
This damage type is like a contract’s built-in calculator: breach the deal, and here’s the price—no guesswork needed.
Liquidated damages
As a condition precedent to filing a lawsuit, most reinsurance agreements require the parties to engage in this alternate dispute resolution method before going to court.
Arbitration
"For this purpose." Refers to arrangements or committees created for a specific contractual purpose.
Ad-hoc
What reinsurance principle requires a reinsurer to accept the cedent’s good‑faith claims decisions—even if the reinsurer might have handled the claim differently?
Follow the Fortunes
Who provides the best treats?
Elena :)