The Asian Surety & Insurance (Asian) and the Fieldmen’s Insurance Company (Fieldmen), as the reinsurer, entered into seven (7) reinsurance agreements or treaties. The agreements or treaties were to take effect from certain specific dates and were to be in force until cancelled by either party upon previous notice of at least three (3) months by registered mail to the other party, the cancellation to take effect as of the 31st of December of the year in which the notice was given.
On September 19, 1961, FIELDMEN’S, by means of registered mail, served notice to ASIAN to be relieved from all participation in various treaties effective December 31, 1961. On December 7, 1961, FIELDMEN’S sent another letter expressing such intention. However, Asian did not acknowledge the letters.