Definition of RE-INSURANCE


RE-INSURANCE

mar. contr. An insurance made by a former insurer,
his executors, administrators, or assigns, to protect himself and his estate
from a risk to which they were liable by the first insurance.


2. It differs from a double insurance (q. v.) in this, that in the
latter cases, the insured makes two insurances on the same risk and the same
interest.


3. The insurer on a re-insurance is answerable only to the party whom he
has insured, and not to the original insured, who can have no remedy against
him in case of loss, even though the original insurer become insolvent, because
there is no privity of contract between them and the original insured. 3 Kent,
Com. 227; Park. on Ins. c. 15, p. 276; Marsh. Ins. B. 1, c. 4, s. 4




Source: Bouviers Law Dictionary 1856 Edition

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