following the fortunes

  • The clause stipulating that once a risk has been ceded, whatever the ceding company may find necessary to do in good faith is binding on the reinsurer. The words "in good faith" are stressed, for this is the core of the matter.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).