Inured contracts

I would like whether others agree with the statements below. If reinsurance program A is paid prior to reinsurance program B (that is B is paid after the effects of A has been taken into consideration), then the technical terms are either of:

• A inures to B or
• B is inured to the benefit of A

 

I would say the first bullet point.

If A inures to the benefit of B, then contract A acts before B. So reinsurance recoveries made on contract B are Net of recoveries made on contract A

 

Thank you for your prompt reply. Therefore the contract that "inures" is the one that is minimizing the effect to "the benefit" of the second contract.

"A inures to B" and "A inures to the benefit of B" would mean the same.

 

-"inure" basically means "to be used"
-if something is done for the benefit of you (e.g. "we're explaining this for the benefit of zuglubuglu"), then you are the one that takes advantage of it.

So, as LastHurdles says, the correct phrase is "A inures to the benefit of B", because it is programme A is used, and programme B takes advantage of it.

Hope that helps