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New soft-law rules for the reinsurance contracts

The Principles of Reinsurance Contract Law (PRICL) were published in the end of 2019. They were drafted by a Project Group of university professors, representatives from primary insurance and reinsurance companies and reinsurance brokers, in cooperation with the International Institute for the Unification of Private Law (UNIDROIT).

The Project Group aimed to harmonize the different national legislations because the reinsurance business is usually carried out internationally. PRECL encompass the best national practices and is often construed as means for interpretation of contracts irrespective of the national reinsurance law.

PRECL include rules for the conclusion, validity, remedies, risk and loss allocation, the duties of the contracting parties to a reinsurance contract. The main feature of PRECL is that they are not binding for the contracting parties unless the latter have explicitly agreed so.

The newsletter above is intended for information purposes only by drawing your attention to the newest soft-law regulation. It should not be construed as (binding) legal advice. For a thorough understanding of the subjects covered and prior acting on any issue discussed we kindly recommend Readers consult Ilieva, Voutcheva & Co. Law Firm attorneys at law.