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📄 '''General disclosure''' is a broad, catch-all statement made by a seller during an [[Definition:Insurance merger and acquisition (M&A) | insurance M&A]] transaction that refers the buyer to an entire body of documents or information — such as board minutes, regulatory filings, or data room contents — rather than disclosing specific facts against individual [[Definition:Warranty | warranties]] in the [[Definition:Disclosure letter | disclosure letter]]. In insurance transactions, where the volume of regulatory correspondence, [[Definition:Claims reserve | claims reserve]] files, [[Definition:Reinsurance | reinsurance]] contracts, and [[Definition:Policyholder | policyholder]] records can be enormous, sellers frequently attempt to use general disclosures to sweep large categories of information into the disclosed universe without itemizing each relevant fact. The practice is especially common in sales of [[Definition:Managing general agent (MGA) | MGAs]], [[Definition:Insurance carrier | carriers]], and [[Definition:Run-off | run-off]] portfolios, where legacy documentation may span decades and multiple jurisdictions.

⚖️ In practice, a general disclosure clause typically states that the buyer is deemed to have knowledge of everything contained in specified repositories — often the virtual data room, publicly available regulatory filings with bodies such as the [[Definition:National Association of Insurance Commissioners (NAIC) | NAIC]], the [[Definition:Prudential Regulation Authority (PRA) | PRA]], or equivalent supervisory authorities, and any documents delivered to the buyer's advisors prior to completion. The buyer's legal team will usually resist unfettered general disclosures because they undermine the purpose of specific [[Definition:Warranty | warranties]] and make it difficult to bring a [[Definition:Warranty and indemnity insurance (W&I) | warranty and indemnity insurance]] claim or a direct claim against the seller for breach. Negotiations often produce a compromise: the general disclosure may be accepted but limited to documents that are clearly indexed, or the [[Definition:Sale and purchase agreement (SPA) | sale and purchase agreement]] may specify that general disclosures only qualify certain warranties rather than all of them. In cross-border deals involving [[Definition:Solvency II | Solvency II]] entities or businesses regulated under multiple regimes, the scope of publicly available filings that could be swept in adds another layer of complexity.

🔍 The treatment of general disclosures can materially affect deal economics and post-completion risk allocation, which is why [[Definition:Warranty and indemnity insurance (W&I) | W&I insurers]] scrutinize them carefully when underwriting transaction liability policies. A broadly drafted general disclosure may lead a W&I insurer to exclude certain warranty categories from coverage, or to insist on enhanced [[Definition:Due diligence | due diligence]] before binding. For sellers, a well-crafted general disclosure reduces exposure to post-closing claims; for buyers, pushing back on its breadth preserves the ability to recover losses if undisclosed liabilities — such as latent [[Definition:Asbestos and environmental liability | asbestos claims]], [[Definition:Regulatory risk | regulatory enforcement actions]], or under-reserved [[Definition:Long-tail liability | long-tail liabilities]] — surface after the deal closes. Understanding how general disclosures interact with the specific disclosure schedule is therefore a foundational skill in insurance transaction practice.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Disclosure letter]]
* [[Definition:Warranty]]
* [[Definition:Warranty and indemnity insurance (W&I)]]
* [[Definition:Due diligence]]
* [[Definition:Sale and purchase agreement (SPA)]]
* [[Definition:Data room]]
{{Div col end}}

Definition:General disclosure - Revision history

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