Basic Law Of The Reinsurance Contract Research

As an important part of insurance law, re-insurance has three functions. Firstly, it can spread risks. Secondly, it can improve underwriting capacity of insurance companies.Tirdly; it can protect the interest of the original role of the insured person. China has no specific re-insurance law. Insurance law has changed three times in the past fifteen years. But there are some questions are still not clearly defined. Such as, the nature of reinsure contracts, cut- through clause, re-insurance subrogation, etc. In this paper we want to introduce the relevant system of re-insurance contract and we will use the method of comparative analysis and normative analysis to answer these questions we have listed above. This paper is divided into four parts:In the first chapter, firstly, we introduce the concept of reinsurance and its functions. Secondly we want to tell the difference between similar concepts. Such as, co-insurance and duplicate insurance and its functions.Tirdly, we introduce the characteristics of re-insurance contracts and its types. The last part is the nature of the re-insurance contracts. In this section, we describe the different nature of the re-insurance contracts doctrine, and then we base on the analysis of various theories and obtained the conclusion that re-insurance contract is has nature of liability insurance.In the second chapter, we mainly discus the application of three principles, There are the principle of utmost good faith, insurable interest principle and the principle of compensation of loss re-insurance. There are different from the application in the principle of utmost good faith, the re-insurer undertakes the obligation of infinite inform. While the original insurer undertakes the obligation of limited inform. In the principle of insurable interst, we try to certify that the time of re-insurance is different from the person insurance. But it is accord with the time of the insurable interest in property insurance. In the principle of compensation for the loss re-insurance, we try to discuss this principle can use in re-insurance contract.In the third chapter, we focus on the re-insurance contract elements: subject, object and content. Firstly, the main terms of the re-insurance contract is different from the original insurance contracts. Because the subjects of re-insurance contracts are insurance companies.Secondly, the terms of re-insurance contracts are unique in that it has international general terms and conditions, such as, follow the fortunes, Cut-through clauses, error omission terms.Tirdly,in terms of re-insurance contracts on the basis of the principal rights and obligations of both parties were summarized.In the last chapter, we want to know whether the right of subrogation is entitled to the re-insurer and in which way re-insurers exercise their right of surbogation. After analysis, we have a conclusion that re-insurers have the right of surbogation. In general the right of subrogation can use by insurers. But under the special situation re-insurances can use it by themselves.