37.1 One of the essential characteristics of most insurance and reinsurance contracts is the transfer of economic liability for an insurable risk from the insured to the insurer. In this chapter we shall concentrate upon not how or whether obligations to reinsure another are properly assumed, but when and how those assumed obligations can be passed over to a third party; in what circumstances that third party becomes directly accountable to ensure those contractual obligations are honoured; and what safeguards are afforded to those affected by the change made.