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Legal Update

Wasa v Lexington [2009] UKHL 40

August 2009
Mayer Brown Legal Update
It may have been thought safe to assume that cover under a facultative contract of reinsurance, incorporating the terms of the underlying insurance contract, and cover under the insurance contract, will be back to back, even if the laws by which they are governed differ. The long awaited decision of the House of Lords in Wasa v. Lexington clarifies the limits to when this assumption may be relied upon.

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