BONNER AND OTHERS v COX AND OTHERS

[2006] Lloyd's Rep IR 385

COURT OF APPEAL

Before Lord Justice Waller, Lord Justice Tuckey and Lord Justice Moses

Reinsurance - Energy risks insured under Open Cover - Reinsurance issued as standing offer to subscribers to Open Cover - Whether brokers’ knowledge of loss prior to acceptance of reinsurance cover was a material fact - Whether reinsurers induced - Whether misrepresentations made to reinsurers as to duration and nature of direct risks under Open Cover - Whether implied term that reinsured would not “write against” the reinsurance - Nature of terms to be implied into a reinsurance agreement - Whether reinsurance covered long-term risks re-signed into the period of coverage.