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Insurance & Reinsurance News

Case Law

Exhaustion Found Ambiguous Causing Reinsurer to Follow the Settlement

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In a recent facultative reinsurance dispute over the payment of an asbestos settlement, a New York federal court found the term “exhaustion” ambiguous and granted summary judgment to the cedent requiring the reinsurer to pay its share of an asbestos settlement. In Fireman’s Fund Insurance Co. v. OneBeacon Insurance Co., No. 14 Civ. 4718 (PGG) (S.D.N.Y. Oct. 19, 2020), the … [Read more...] about Exhaustion Found Ambiguous Causing Reinsurer to Follow the Settlement

UK High Court Rules on Business Interruption Insurance Test Case

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On September 15, 2020, the UK’s High Court issued its highly-anticipated ruling on the “test case” for COVID-19 business interruption insurance coverage. The case was brought by the UK Financial Conduct Authority (FCA) on behalf of several policyholders – many small and medium sized enterprises (SMEs) – to determine how the Court would rule on several different policy wordings … [Read more...] about UK High Court Rules on Business Interruption Insurance Test Case

To the Cedent, Summary Judgment

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A New York federal court grants summary judgment to a cedent for breach of contract where reinsurer failed to provide the required collateral. Legal News Many reinsurance arrangements require the posting of collateral. The failure to post collateral is often grounds for a breach of contract claim. In a recent decision, a New York federal court granted summary judgment to the … [Read more...] about To the Cedent, Summary Judgment

No Tort Liability in Reinsurance Contract Dispute Under California Law

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California federal court addressing an issue of the first impression holds that tort liability for breach of the implied covenant of good faith and fair dealing was not a valid cause of action under California law in a reinsurance dispute. A typical reinsurance dispute is essentially a breach of a contract dispute. A reinsurance agreement is a contract between two insurance … [Read more...] about No Tort Liability in Reinsurance Contract Dispute Under California Law

Using a Letter Agreement to Strengthen the Confidentiality of Settlement Negotiations

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Letter agreements are usually confidential.  As a result, there is a dearth of practical guidance on when, and how, to use them. Porter Wright Morris & Arthur LLP helps fill that gap.  Your settlement negotiation checklist should include this entry:  “whether, and how, to use a letter agreement.”  A letter agreement—if well-drafted—can … [Read more...] about Using a Letter Agreement to Strengthen the Confidentiality of Settlement Negotiations

Second Circuit Says Cedent Cannot Use the “Follow-the-Settlements” Doctrine to Circumvent Plain, Unambiguous Policy Provision

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Second Circuit holds that the “follow-the-settlements” doctrine does not bind a reinsurer to settlement decisions that are inconsistent with the plain, unambiguous terms of the reinsured policy.  https://www.whiteandwilliams.com/resources-alerts-Second-Circuit-Says-Cedent-Cannot-Use-the-Follow-the-Settlements-Doctrine-to-Circumvent-Plain-Unambiguous-Policy-Provision.html … [Read more...] about Second Circuit Says Cedent Cannot Use the “Follow-the-Settlements” Doctrine to Circumvent Plain, Unambiguous Policy Provision

Arbitrators to Decide If Reinsurance Rebilling After Final Arbitration Award Is Precluded

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Federal District Court in Massachusetts holds that the preclusive effect of a prior arbitration award is itself an arbitrable issue.  Read full article here - https://www.inredisputesblog.com/2020/03/arbitrators-to-decide-if-reinsurance-rebilling-after-final-arbitration-award-is-precluded/   … [Read more...] about Arbitrators to Decide If Reinsurance Rebilling After Final Arbitration Award Is Precluded

Final Award Confirmed Over Interim Final Award in Reinsurance Dispute

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Court rules that the Final Award is the Final Award and rejects reinsurer’s argument that the arbitration panel was functus officio after it issued the Interim Final Award.  Read full article here - https://www.inredisputesblog.com/2020/04/final-award-confirmed-over-interim-final-award-in-reinsurance-dispute/   … [Read more...] about Final Award Confirmed Over Interim Final Award in Reinsurance Dispute

Who Demands Arbitration Is Key to Whether Arbitration Will be Compelled

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Complex corporate structures and internal reinsurance relationships can complicate legacy reinsurance relationships. Larry Schiffer summarizes a recent SDNY case that dealt with one such complication in compelling arbitration.  Read full article here - https://www.inredisputesblog.com/2020/02/who-demands-arbitration-is-key-to-whether-arbitration-will-be-compelled/ … [Read more...] about Who Demands Arbitration Is Key to Whether Arbitration Will be Compelled

Is Reinsurance Information Relevant In an Insurance Coverage Case?

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Larry Schiffer of Squire Patton Boggs blogs about noteworthy decision on discovery of reinsurance information in lawsuit against National Football League.  There are lots of cases discussing the production of reinsurance contracts and reinsurance communications in insurance coverage disputes.  Generally, the answer depends on the specific facts of the case.  … [Read more...] about Is Reinsurance Information Relevant In an Insurance Coverage Case?

The Edges of Follow the Fortunes

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Ask two reinsurance experts to define the parameters and limitations of Follow the Fortunes (“FTF”) and you will, undoubtedly, receive two different responses.  Provide these experts with a fact pattern and ask whether FTF applies, and you are still likely to receive inconsistent answers.  It hardly matters whether the experts have more experience on the ceded or … [Read more...] about The Edges of Follow the Fortunes

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