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EAUA Pools Scope

This page identifies the scope of the business covered by the proposed Pool Scheme.

SCOPE

The Scheme Companies (“the Companies”) each underwrote insurance and reinsurance business in pooling arrangements through one or more of the pools described below. Pooling is a method of spreading risk whereby a combination of insurers, writing a specific class of insurance, agree to share the premiums and losses in agreed proportions. In this case the affected pools are the EAUA Pools, the TAUS Pool, the Transglobe Re Pool and the E&A Re Pool (together referred to as the "Pools").

The Pools underwrote risks until the end of 1992, at which time they ceased accepting new business and went into run-off.

The Companies current and former names are summarised under EAUA Pools Companies.

The proposed Pool Scheme will apply to the Companies' 'liabilities' in respect of:

    		•  business underwritten or administered by EAUA specified (and not excluded) below ("EAUA Pools Business");
    		• certain Liabilities of individual Companies which are not EAUA Pools Business, (referred to as "Other Liabilities"), which are specified (and not excluded) below.

    The proposed Pool Scheme will apply only to EAUA Pools Business and Other Liabilities.

    SCOPE OF SCHEME – LIABILITIES CONSTITUTING SCHEME CLAIMS

    A Scheme Claim is any Liability of the Scheme Company which is a Pool Liability or Other Liability referred to below.

    1. Introduction

    1.1 The Scheme Companies underwrote Insurance contracts through one or more of the following pools:
  •  
    		•  the Marine Pool, also known as the English and American Marine or “M” Group or Bowring Marine Group, which underwrote from 1954 to 1992.
  •  
    		•  the Aviation Pool underwrote from 1980 to 1992 as three separate accounts, originally in the name of TAIG (Transglobe Aviation Insurance Group), which changed in 1983 to EAAG (English & American Aviation Group).
  •  
    		•  the Non-Marine Pool, which underwrote from 1977 to 1992 (including direct and reinsurance business from 1977 to 1985 and reinsurance business only from 1986 to 1992) originally in the name of C T Bowring Underwriting Services and Aurora Underwriters Limited through London market brokers.
  •  
    		•  the TAUS Pool was an aviation account underwritten in Guernsey from 1990 to 1992.
  •  
    		•  the 'Transglobe Re Pool', the underwriting years of account for this pool were 1982 and 1983 and the business included a mix of facultative, proportional reinsurance and excess of loss. In general, all of the accounts provided reinsurance protection to direct aviation underwriters of mainly airline, airports and aviation products manufacturers.
  •  
    		•  the E&A Re Pool. E&A Re was an underwriting agency established by the English & American Group in Brussels in June 1981.
       
    1.2  Certain of the Scheme Companies acquired their participations in the above pools through accepting a statutory transfer and novation of other companies’ underwriting participations in those pools. Those transfers of which the Scheme Manager is aware are set out in the table at paragraph 5 below. The Scheme Companies and the names in which they wrote Insurance Contracts are set out on the Scheme Companies page.
      Non-Pool - English and American Insurance Company ("EAIC"), and City International Insurance Company Limited ("City International")
    1.3 (a) EAIC commenced underwriting in 1929 and since that date has been involved in a number of underwriting activities. EAIC's active underwriting operations immediately prior to November 1992 included its participation in the English & American Underwriting Agency Limited (“EAUA”) Pools and the Transglobe Underwriting Management (Guernsey) limited (“Transglobe Guernsey”) Pool.
     
    		  
     
    		 EAIC also had a number of discontinued or run-off operations prior to November 1992 now commonly referred to as “non pool”. These included :
  •  
    		•  the London Market Non-Marine account, which comprised London Market non-marine and some aviation business written principally between 1952 and 1976
  •  
    		•  the ANMC, BIAN, BPI and BEAF fronting facility arrangements written between 1977 and 1986
  •  
    		•  the Bowring International Reinsurance Group (BIRG) account which wrote London Market Excess of Loss (“LMX”) reinsurance between 1967 and 1983
  •  
    		•  an International account which encompassed various overseas agency operations. These were discontinued in 1985
  •  
    		•  a Home account which consisted of various agencies in the UK. This business was also discontinued in 1985
  •  
    		•  the general insurance business of Providence Capitol Life Assurance Company Limited, formerly Slater Walker Life Assurance Company Limited, which was transferred to EAIC in 1988 and consisted of marine and non-marine business written in the name of Slater Walker between 1972 and 1976.
       
    1.3 (b) City International Insurance Company Limited is also including its non-Pools Business within the Scheme, namely all Liabilities arising by it (or by its predecessor in title) or in connection with any reinsurance or contract of insurance or reinsurance underwritten including, without limitation, in respect of its own non-marine reinsurance business during the years 1985 to 1992. Classes of business underwritten included facultative property, facultative liability, miscellaneous facultative business, proportional reinsurance property, proportional PA/KR, proportional property, bloodstock, non-proportional liability and non-proportional property. Since April 1996, the run off of this account has been managed by Capita Commercial Insurance Services Limited (formerly Claims Management Group Limited). This non-pools business amounts to less than 4 percent of this company's overall underwriting liabilities.
       
    1.3 (c) The Insurance Corporation of Singapore (U.K.) Limited. Provision was made in the Existing ICS Scheme for Oberon Pool Claims to be submitted to St Paul Re, and paid by that company. Those provisions are not amended by the Scheme and ICS has no remaining liability or obligation whatsoever to make payment in respect of those claims.
       
    2. Pool Liabilities

    Save as excluded in paragraph 4, "Pool Liabilities" are all Liabilities arising under or in relation to the Insurance Contracts referred to in paragraph 1.1 above. For the avoidance of doubt, Pool Liabilities include all Liabilities arising under any agreement pursuant to which an insurance broker is entitled to brokerage or commission from the Scheme Company in respect of placing an Insurance Contract referred to in paragraph 1.1 above, and Liabilities arising under rights of contribution and subrogation in respect of such an Insurance Contract.

    3. Other Liabilities

    3.1 "Other Liabilities" are:
    3.1.1 all Liabilities of EAIC which are neither Pool Liabilities nor Liabilities excluded by paragraph 4 below;
    3.1.2 all Liabilities of City International Insurance Company Limited which are neither Pool Liabilities nor Liabilities excluded by paragraph 4 below;

    4. Liabilities which are not Pool or Other Liabilities

    4.1 Pool Liabilities and Other Liabilities shall not include:
    4.1.1 Liabilities in respect of fees, costs and expenses (including any tax thereon), in respect of services or advice, payable to service providers, excluding brokers, but including, without limitation, lawyers and loss adjusters, unless they are liabilities incurred by EAIC or ICS before the Record Date, as defined within the Scheme.
    4.1.2 In the case of EAIC only, Liabilities under policies signed and issued by the Institute of London Underwriters on EAIC's behalf with an inception date between 3 July 1980 and 6 October 1983 (both dates inclusive) which have not become Established Scheme Liabilities under the Existing EAIC Scheme by the Effective Date ("the Marsh Mac Protected Liabilities").
     4.1.3 In the case of Nippon Insurance Company of Europe Limited only, Liabilities under any Relevant Employer's Liability policy or cover written by that company.
     4.1.4 If and to the extent that (i) the Scheme is not approved by the requisite statutory majorities of creditors under Relevant Employer's Liability (EL) Covers at the separate class meetings (or at any adjournment thereof) convened for those creditors of each affected Scheme Company to vote on the Scheme, or (ii) the Scheme is not subsequently sanctioned by the Court in respect of the class of creditors of each affected Scheme Company comprising creditors under EL Covers, in either or both cases, the EL Covers written by the affected Scheme Company concerned.
        
    5. Details of Business Transfers Relevant to EAUA Pools Business

    Transferee Transferor Previous names of transferor Date of transfer

    English & American Insurance Company Limited

    Providence Capitol Life Assurance Company Limited

    Slater Walker Life Assurance Company Limited, Slater Walker Insurance Company Limited and Arrow Life Assurance Company Limited

    26 February 1988

     

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