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Liability Risk and Insurance

Single or aggregating event

A ruling that the loss of a British Airways (BA) jet was a separate event from losses to Kuwait Airways Corp (KAC), even though both occurring in the course of the Gulf War and at the same location, has gone some way to clarifying reinsurance law in this area. In the case at issue it was held that the events differed on three of the four “unities” required for aggregation. The KAC losses arose from the capture of the airport and were driven by economic considerations, the BA loss was a retaliatory response to the outbreak of war and occurred some months later. [See Aviation].

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