Article 6.1.3

(Interpretation of incorporated matching terms)

(1)  Where the reinsured has settled a claim by its insured in a manner which is binding on the reinsurer, the reinsurer may not raise any defence based upon the interpretation of any incorporated matching terms in the contract of reinsurance.

(2)  The interpretation of a term in the insurance contract as determined in judicial or arbitration proceedings in relation to that contract is deemed to be the interpretation to be applied to the incorporated matching term in the contract of reinsurance.