We use cookies to improve your website experience. To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy. By continuing to use the website, you consent to our use of cookies. Close

Reinsurance: cut-through clauses

Insurance Law Monthly

Reinsurance: cut-through clauses

Cut-through clauses have been used in reinsurance contracts for many years. Their effect is to give the assured a direct claim against reinsurers. Traditionally the clauses have been confined to the situation where the reinsured had become insolvent, and there are unresolved issues as to whether the clause can be enforced as against the reinsured’s liquidator in that it favours the assured as an unsecured creditor.

The clause in Randgold Resources Ltd v Santam Ltd and Another [2018] EWHC 2493 (Comm) operated independently of insolvency. The question before Christopher Hancock QC (sitting as a Deputy High Court Judge) was whether the assured was entitled to seek a declaration as to the liability of the reinsurers to the reinsured.

The rest of this document is only available to i-law.com online subscribers.

If you are already a subscriber, please enter your details below to log in.

Enter your email address to log in as a user on your corporate account.
Remember me on this computer

Not yet an i-law subscriber?

Devices

Request a trial Find out more