Unum Life Insurance Company of America v. The Israel Phoenix Assurance Co. Ltd
. (Commercial Court – Andrew Smith J., 16 March 2001)
Policy wordings are often not produced and agreed until some time after the slip is completed and the insurers or reinsurers go on risk. Indeed, it is often the case that the policy wordings are only produced and agreed after a dispute has arisen (as here). Phillips J. held in Youell v. Bland Welch [1990] 2 Lloyd’s Rep. 423 that: "An insurance slip customarily sets out a shorthand version of the contract of insurance, in terms which may be neither clear nor complete. Where, as here, the slip provides for the formal wording to be agreed by the leading underwriter, the other subscribers to the risk anticipate and agree that the leading underwriter will, on their behalf, agree the final wording that will spell out their rights and obligations." In Unum v. Israel Phoenix, the court had to decide whether such agreement extended to permit the leading
