Nonproportional Reinsurance and the Index Clause

Not since the Depression of the ’30s has the country been so concerned about the state of the economy and, in particular, inflation. Everyone recognizes inflation to be the cruelest tax of all - a phenomenon that in its most virulent form can tear asunder the fabric of society. We are confronted with double digit inflation and double digit prime rates. In the words of President Ford, “Inflation is domestic enemy number one.”