Reinsurance in Plain English

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Reinsurance in Plain English

Reinsurance represents one of the largest, if not the largest, purchase an insurance company makes annually. It is intentionally made nebulous by the reinsurance sales industry that makes commissions based on how much reinsurance it can sell you.

It was the courts that stated in 2013 that "Reinsurance is a dauntingly complex, esoteric field of business and the briefs in this case are correspondingly complex and esoteric...The lawyers' oral arguments were excellent. But their briefs, although well written and professionally competent, were difficult for us judges to understand because of the density of the reinsurance jargon in them. There is nothing wrong with specialized vocabulary--for use by specialists. Federal district and circuit judges, however, with the partial exception of the judges of the court of appeals for the Federal Circuit (which is semi-specialized), are generalists. We hear very few cases involving reinsurance, and cannot possibly achieve expertise in reinsurance practices except by the happenstance of having practiced in that area before becoming a judge, as none of us has. Lawyers should understand the judges' limited knowledge of specialized fields and choose their vocabulary accordingly. Every esoteric term used by the reinusrance industry has a couterpart in ordinary English, as we hope this opinion has demonstrated."1

It is Boomerang's expertise to take intentionally complex reinsurance treaty jargon and translate and interpret it into everyday, ordinary business English.

1 Indiana Lumberman's Mutual Insurance Company v Reinsurance Results, Inc. - No. 07-1823 January 16, 2008, (513 F.3d 652)

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