AIDA Reinsurance Working Party Covid19 Reinsurance Issues Jonathan

Definition of Loss Occurrence applicable to Property Catastrophe Treaties • The term "Loss Occurrence"

Triggers for the losses Proximate Cause: the pandemic Proximate Cause: the Government lockdown Property

Loss Settlements/Follow • Version 1 “All loss settlements made by the Reinsured shall be

Jonathan Sacher, Co-Head of Insurance 15 July 2020 Practice This document provides a general

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AIDA Reinsurance Working Party Covid-19 Reinsurance Issues Jonathan Sacher, Co-Head of Insurance Practice 15 July 2020

Definition of Loss Occurrence applicable to Property Catastrophe Treaties • The term "Loss Occurrence" shall mean all individual losses arising out of and directly occasioned by one catastrophe. • The duration and extent of any "Loss Occurrence" so defined shall be limited to: 1. 168 consecutive hours as regards hurricane, typhoon, cyclone, windstorm, rainstorm, hailstorm, tornado, earthquake, seaquake, tidal wave, tsunami, volcanic eruption, riot, strike, civil commotion and malicious damage; 2. 504 consecutive hours as regards flood; 3. 168 consecutive hours for any Loss Occurrence of whatsoever nature which does not include individual loss or losses from any of the insured perils mentioned in the paragraphs above • The Reinsured may choose the date and time when any such period of consecutive hours commences and the date and time when it ends, subject always to the maximum period of consecutive hours set out above www. bclplaw. com Page 2 © Bryan Cave Leighton Paisner

Triggers for the losses Proximate Cause: the pandemic Proximate Cause: the Government lockdown Property damage Non-damage denial of access extensions Primary business interruption cover Some notifiable disease extensions Damage-based denial of access extensions Some loss of attraction extensions Some notifiable disease extensions Prevention of access cover / public emergency cover Some loss of attraction extensions www. bclplaw. com Page 3 © Bryan Cave Leighton Paisner

Loss Settlements/Follow • Version 1 “All loss settlements made by the Reinsured shall be binding upon the Reinsurers provided they are within the terms and conditions of the original policies and within the terms and conditions of this Contract. ” • Version 2 “ Being a Reinsurance of and warranted same…terms and conditions as and to follow the settlements of the Reinsured. ” www. bclplaw. com Page 4 © Bryan Cave Leighton Paisner

Jonathan Sacher, Co-Head of Insurance 15 July 2020 Practice This document provides a general summary only and is not intended to be comprehensive. Specific legal advice should always be sought in relation to the particular facts of a given situation.