ERC FRANKONA REINSURANCE v AMERICAN NATIONAL INSURANCE CO

[2006] Lloyd's Rep IR 157

QUEEN’S BENCH DIVISION COMMERCIAL COURT

Before Mr Justice Andrew Smith

Reinsurance - Effect of scratching reinsurance slip “TBE” (“to be entered”) - Non-disclosure by reinsured of fraud of reinsured’s underwriting agent - Whether reinsured or agent knew of fraud - Whether knowledge of agent imputed to reinsured - Whether fraud material and induced the reinsurers - Non-disclosure by reinsured of direct losses - Whether reinsured guilty of misrepresentation as regards itself acting as reinsurer - Whether false statements amounted to warranties - Marine Insurance Act 1906, sections 18, 19 and 20.