AIDA Reinsurance Working Party Meeting

1. Vejledning Sådan skifter du billedet på Titelsiden: Dobbeltklik på selve billedet (klik uden for tekstfelterne) Klik på Change Picture på værktøjslinjen Vælg den mappe på netværket, hvor billedfilerne i formatetH 18,4 x B 26,8 ligger Dobbeltklik nu på den ønskede billedfil, og billedet er udskiftet HUSK AT SLETTE DENNE VEJLEDNINGSBOKS AIDAReinsurance Working Party Meeting Paris, 2 December 2015

2. Vejledning Ønsker du flere afsnitstitelsider med mørk tekst, så kopier denne side Sådan skifter du billedet på Afsnitstitelsiden: Dobbeltklik på selve billedet (klik uden for tekstfelterne) Klik på Change Picture på værktøjslinjen Vælg den mappe på netværket, hvor billederne i formatetH 18,4 x B 26,8 ligger Dobbeltklik på den ønskede billedfil, og billedet er udskiftet HUSK AT SLETTE DENNE VEJLEDNINGSBOKS Agenda The insurer's obligation to pay interest on a claim Can a reinsured pass on interest paid on a claim to the reinsurer? If the reinsurer delays payment of the claim reported by the reinsured would interest then be payable by the reinsurer?

3. A: The insurer's obligation to pay interest on a claim • Section 24 of The Danish Contracts of Insurance Act: • Payment of the policy moneys may be claimed to be made 14 days after the company has been able to obtain the information necessary for the estimation of the event insured against, and fixation of the amount of the policy moneys. If before the final adjustment can take place, it is indisputable that the company is to pay at any rate part of the amount claimed, payment of that portion can be claimed to be made in accordance with the rules contained in the 1st sentence of this section. (Since 1930) • The company shall pay interest on the amount from the time that it can be claimed in accordance with subsection 1 at an annual rate pursuant to the rate in section 5 of The Danish Interest Act. • (…)

4. A: The insurer's obligation to pay interest on a claim Section 5 of The Danish Interest Act: • Interest after the due date is fixed at an annual interest rate which corresponds to the fixed benchmark rate plus an interest rate premium of 8 percent. For the purposes of this Act the benchmark rate is the official lending rate fixed by the Danish Central Bank on 1 January and 1 July respectively of the year in question. • (…) • The official lending rate as of 20 January 2015: 0,05 %

5. B:Can a reinsured pass on interest paid on a claim to the reinsurer? • As a starting point one must look at the reinsurance contract. However, often it is not regulated herein. • Based on principles of "business efficacy" and "business common sense" and the fundamental common destiny between the reinsurer and the reinsured the reinsured can most likely pass on interest paid on a claim to the reinsurer. • No recent case law published in which the reinsurer has disputed payment of such interest (since 1925).

6. C:If the reinsurer delays payment of the claim reported by the reinsured would interest then be payable by the reinsurer? • As a starting point one must look at the reinsurance contract. However, often it is not regulated herein. • The Danish Contract of Insurance Act, the act does not apply to reinsurance, see section 1(2), litra 1 and thus the rules in article 24 are not applicable to this situation. • The rules of the Danish Interest Act applies.

7. C:If the reinsurer delays payment of the claim reported by the reinsured would interest then be payable by the reinsurer? Section 3 of The Danish Interest Act: • Interest is payable from the due date, if it is fixed in advance. • In other cases, interest is payable when 30 days have passedsince the date of which the creditor has sent or submitted a request for payment. The debtorneed not payinterest for the period prior to receipt of the request. • Notwithstandingsubsection 1 and 2 interest is at the earliest payable after a period of 30 daysafter the date of which the debtorwasable to obtain the information that is deemednecessary to assess the eligibility and size of the claim. • Notwithstandingsubsection 2 and 3 interest is at the latest payable from the daywhen the creditorbeganproceedings for the payment of the debt. • (…)

8. C:If the reinsurer delays payment of the claim reported by the reinsured would interest then be payable by the reinsurer? Section 5 of The Danish Interest Act: • Interest after the due date is fixed at an annual interest rate which corresponds to the fixed benchmark rate plus an interest rate premium of 8 percent. For the purposes of this Act the benchmark rate is the official lending rate fixed by the Danish Central Bank on 1 January and 1 July respectively of the year in question. • (…) • The official lending rate as of 20 January 2015: 0,05 %

9. Torben Bondrop Plesner Law Firm Amerika Plads 37 2100 København Ø Denmark Phone: +45 40 10 91 56 tbo@plesner.com www.plesner.com Informationerne i denne præsentation er af generel karakter og er ikke at forveksle med juridisk rådgivning. Anvendelse af præsentationens informationer sker på eget ansvar. Du er velkommen til at kontakte Plesner ved behov for rådgivning.