How to use PRICL

Good news—PRICL is simple, flexible, and fully adaptable to your needs!

You can adopt PRICL as your governing law or apply only the specific provisions that best fit your agreement—the choice is entirely yours.

Here’s a quick guide to the three ways you can integrate PRICL into your contract. No matter which option you choose, you’re set to gain!

Choosing PRICL as the governing law of the reinsurance contract means that PRICL will replace the otherwise applicable national law. PRICL therefore becomes the law that applies to the reinsurance contract.
PRICL becomes the governing law and replaces the otherwise applicable national law, including those rules of the relevant domestic law from which the parties are unable to derogate contractually. PRICL does not restrict the application of overriding mandatory rules under national, international or supranational law.
PRICL can be chosen as the governing law of the reinsurance contract with a governing law cause.
The advantage of this method is that PRICL becomes the ‘background law’ of the reinsurance contract. Any rules of the relevant domestic law from which the parties would not be able to derogate contractually do not apply. Domestic law does not come into play as a gap filler. Any gaps left by PRICL are filled by the UNIDROIT PICC.

Incorporating the whole set of PRICL into the reinsurance contract means that PRICL will take effect as contractual terms. The reinsurance contract will have a separate governing law of a national legal system as chosen by the parties or, in the absence of a valid choice, as determined by the rules of private international law.
PRICL takes effect as contractual terms that substitute the default rules of, and fill the gaps left by, the applicable domestic law. PRICL supplements the other terms of the reinsurance contract to the extent that the PRICL provisions are not inconsistent with those other terms.
PRICL can be incorporated by an incorporation clause that references PRICL. There may be additional requirements for effective incorporation under the applicable domestic law.
The advantage of this method is that PRICL fills gaps in the reinsurance contract itself, and the applicable domestic law (which may be of particular benefit if the applicable domestic law has no dedicated body of reinsurance contract law). At the same time, the parties can contract against the background of a (chosen) domestic law with which they are familiar or under which they are required to contract by law or regulation.

Incorporating an individual PRICL provision means that this PRICL provision only – but not the other non-incorporated provisions of PRICL - becomes a term of the reinsurance contract. The reinsurance contract will contain other terms agreed between the parties and will be governed by the law of a national legal system.
The incorporated PRICL provision will become a term of the reinsurance contract. To the extent the PRICL provision is inconsistent with a default rule, the parties contract out from such a default rule by incorporating the PRICL provision.
An individual PRICL clause can become a term of the reinsurance contract by copy-pasting into the contract document.
The advantage of incorporating an individual PRICL provision is that parties can continue to use reinsurance policy wordings with which they are familiar while using specific PRICL provisions that suit their circumstances. Initially, it may be easier to become comfortable with, and test out, individual PRICL provisions.