Principles of Reinsurance Contract Law PRICL General Rules

PRICL Concept Main characteristics: • Uniform law instrument • Optional instrument

PRICL Structure • • • Chapter 1: General Provisions Chapter 2: Duties Chapter 3:

PRICL General Provisions • Art. 1. 1. 1 - Substantive scope of application •

Art. 1. 1. 1 PRICL - Application • “The PRICL apply to contracts of

Art. 1. 1. 1 PRICL - Application Art. 28 (1) sentence 1 UNCITRAL Model

Art. 1. 1. 1 PRICL - Application • Option 2 Incorporation into contracts which

Art. 1. 1. 2 PRICL – External Gaps • “Issues not settled by the

Art. 1. 1. 2 PRICL – External Gaps Art. 2. 1. 1 ff. PICC

Art. 1. 1. 3 PRICL – Default Rules • “The parties may exclude the

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Principles of Reinsurance Contract Law (PRICL) General Rules Prof. Dr. Helmut Heiss, LL. M. Attorney at Law, Zurich

PRICL Concept Main characteristics: • Uniform law instrument • Optional instrument

PRICL Structure • • • Chapter 1: General Provisions Chapter 2: Duties Chapter 3: Remedies Chapter 4: Allocation Chapter 5: Aggregation

PRICL General Provisions • Art. 1. 1. 1 - Substantive scope of application • Art. 1. 1. 2 - External gaps • Art. 1. 1. 3 - Exclusion or modification of the PRICL • Art. 1. 1. 4 - Usages and practices • Art. 1. 1. 5 - Mandatory rules • Art. 1. 1. 6 - Interpretation and internal gaps

Art. 1. 1. 1 PRICL - Application • “The PRICL apply to contracts of reinsurance where the parties have agreed that their contract shall be governed by them. ” • Option 1 Choice of law in contracts submitted to arbitration [replacing the otherwise applicable national law – limited only by Art. 1. 1. 5 PRICL]

Art. 1. 1. 1 PRICL - Application Art. 28 (1) sentence 1 UNCITRAL Model Law “The arbitral tribunal shall decide the dispute in accordance with such rules of law as are chosen by the parties as applicable to the substance of the dispute. ”

Art. 1. 1. 1 PRICL - Application • Option 2 Incorporation into contracts which are submitted to litigation [replacing the default rules of the otherwise applicable national law]

Art. 1. 1. 2 PRICL – External Gaps • “Issues not settled by the PRICL shall be settled in accordance with the UNIDROIT Principles of International Commercial Contracts 2016 (“PICC”)” • Art. 1. 1 PICC (Freedom of Contract) Art. 1. 12 PICC (Computation of time set by the parties) Art. 2. 1. 1 ff. PICC (Formation of contract)

Art. 1. 1. 2 PRICL – External Gaps Art. 2. 1. 1 ff. PICC (Formation of Contract) Art. 4. 1 ff PICC (Interpretation of Contracts) Art. 5. 1. 2 PICC (Implied Obligations) Art. 10. 1 ff. PICC (Limitation Period)

Art. 1. 1. 3 PRICL – Default Rules • “The parties may exclude the application of or derogate from or vary the effect of any of the provisions of the PRICL. ” • Advantage: flexibility • Disadvantage: loss of uniformity