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Silk and love of exclusions

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When the silky embrace gets you anywhere. Within a couple of weeks after the Semana Grande , San Sebastián will have one of its famous hotels full of cinema anoraks.   No one will be excluded from this wonderful event. A worrying trend making the role of contract wordings anoraks so useful is the misunderstanding of exclusions and their unique relationship with coverage extensions. Let us focus on the remote days when the market was sitting on the edge of LMP (London Market Principles) and close to adopt the Market Reform Standards. Twenty years or so later we are now sitting alongside the Market Reform Contract MRC V2.1 and the IMRC. An exclusion would be amended, deleted in part or in full. An exclusion would not apply to a particular scenario. Similarly, a coverage extension would be satisfactorily secured if it explained what was happening with an existing exclusion.   A coverage extension may be obtained until a set amount and beyond that amount the exclusion app...
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Case law library

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 Always looking for new ideas and new decisions from so many valuable sources HFW, HSF, INCE, DAC, CLYDE, PENNINGTON, NORTON ROSE, ALLLEN OVERY, DLA PIPER, EVERSHEDS, BAKER MCKENZIE, PINSENT, RPC,  HOGAN LOVELLS Updating as many times as possible the case law library
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Northern Ireland Protocol Master policy endorsement

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 Notwithstanding and unless otherwise stated elsewhere. Wordings and geopolitics are amazing disciplines. Whatever your allegiance the Northern Ireland protocol announcement tomorrow will be like endorsing a master policy non admitted sub-section interlocking clause. Image Source Dublin's Castle Hall of Presidents May 2022
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Wording impact seen in Chelsea away sanctions breaches

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Special licence for Chelsea Football Club clearly states in its wording that no home Men Premier League fixtures sales to away supporters should take place for fixtures past the 10 March 2022 and as a result both Chelsea Football Club, Arsenal Football Club and to some extent the Premier League body are in breach of the sanctions regulation with respect to the Russian sanctions. Match tickets are the sole and unconditional property of the club, in this instance Chelsea Football Club. By selling the away match tickets to its fans Arsenal Football Club is in breach of the sanctions law and the licence and so is of course Chelsea Football Club. The financial transaction between Arsenal and Chelsea as well as the purchase by fans are both illegal On 5 April 2022 I found out that Arsenal Football Club had organized the away match to Chelsea ticketing for the pending Barclays Premier League match. I then contacted the club telling them that it was illegal. They responded on 6 April 2022 in a...
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Proof of Assignment to lovely Prevention of Access delights

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H SF delivered an outstanding update on the prevention of access clauses last Tuesday (15 March 2022) in a format slightly different from their annual report of cases. And my turn to have a go on this proof of assignment! The FCA Test Case had a selection of wordings which were in the judgement more or less set out in a manichean classification. There was scope for disagreement in some of the conclusions and that is what the court marvellously achieved in the Corbin & King v AXA Insurance Plc [2022] EWHC 409 case. This decision is also going the opposite direction from that taken by the Irish High Court in Brushfield Ltd (trading as The Clarence Hotel) v AXA Insurance Designated Activity Company & Another [2021] IEHC 263 !   Policyholders can expect new Prevention of Access [POA] tests as a detailed analysis of the hybrid clauses and the overall context can change everything. Covid-19 was a “danger” and that the prevention of access clause in the case provided local...
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WTO wordings, the solution to diplomatic jitters

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There are more excluded territories or sanctioned countries (from an insurance geopolitical standpoint) that are genuine members of the World Trade Organization (WTO) as opposed to observation members. In contract law only political risk insurance would help entities deal with the negative effects of sanctions on their revenue and/or profitability. Insurance contracts used to have a trade and sanctions clause mentioning the WTO. It suddenly changed when the sanction limitation exclusion clause came to the fore. It is baffling that the WTO stance on the war in the Ukraine is being ignored. Wordings matter in geopolitical times. MORE than ever. The Washington Post contends that the WTO agreements do not include a provision that explicitly authorizes expulsion. In such contracts it would appear that no criteria, such as maintaining democratic order, that might provide grounds for suspension were established. This is astonishing and appears to contradict what, as part of the Davo...
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Fascinating new world

The following bulletin got shared to the market participants and wordings chums yesterday. Lloyd's Market Association Bulletin LMA21-027-DP | 22 June 2021 Amendments to LMA Model Clauses The LMA, on behalf of its members, publishes LMA (and previously NMA and LSW) referenced clauses as model clauses. These clauses are purely illustrative and are published and distributed for the guidance of Lloyd’s managing agents, brokers and other market participants. All contracting parties are free to agree to different conditions/amend the model clauses as they see fit; the LMA does not protect its intellectual property rights over model clauses. It is for underwriters to decide whether or not any contractual language is acceptable on any given risk. Where an LMA model clause is changed to align with the requirements of the contracting parties, it is no longer the model clause and should not be represented as such. It is currently common practice in the market to change LMA model clauses and h...
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