AIRROC Update

Insurance & Reinsurance News

Legal Updates

Reinsurance Agreements and Initial Disclosures

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A recent decision by a North Carolina federal court adds to a list of cases requiring insurance company defendants in coverage actions to produce reinsurance agreements as part of their initial disclosures under Federal Rule of Civil Procedure 26. Although the list may be growing, many of these decisions adopt an overly simplistic, one-size-fits-all approach that fails to … [Read more...] about Reinsurance Agreements and Initial Disclosures

California Supreme Court clarifies the special relationship

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On April 1, 2021, the California Supreme Court entered an opinion in Brown v. USA Taekwondo, which involves sexual abuse-related claims against USA Taekwondo (“USAT”) and the United States Olympic Committee (“USOC”). Lowers Courts’ Decisions From 2007 to 2013, then-minors Yazmin Brown, Kendra Gatt and Brianna Bordon (collectively, “Plaintiffs”) were sexually abused by their … [Read more...] about California Supreme Court clarifies the special relationship

Strike and Rank – An Alternative to the Strike and Flip Umpire Selection Process

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Umpire selection is one of the most important aspects of a reinsurance (or any other) arbitration because it can have a significant impact on the outcome of your case. Traditionally, parties have utilized the “strike and flip” method of umpire selection where the parties nominate a specified number of candidates, strike all but one of the other side’s candidates and then select … [Read more...] about Strike and Rank – An Alternative to the Strike and Flip Umpire Selection Process

The latest challenge to Ohio’s allocation law

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Nearly two decades ago, the Supreme Court of Ohio adopted an “all sums” approach to allocate insurance coverage for progressive injuries among multiple triggered policies. In Goodyear Tire & Rubber Co. v. Aetna Cas. & Sur. Co., the Court held that “when a continuous occurrence of environmental pollution triggers claims under multiple primary insurance policies, the … [Read more...] about The latest challenge to Ohio’s allocation law

Confidentiality v. Public Access: Third Circuit Unseals Arbitration Award Based On Common Law Right of Access

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On December 24, 2020, the Third Circuit Court of Appeals held that an arbitration award filed in connection with a petition to confirm constituted a “judicial record” to which the common law right of public access applies. The Court also held that the ceding company failed to demonstrate a “clearly defined” injury that would warrant keeping the award under seal. The award was … [Read more...] about Confidentiality v. Public Access: Third Circuit Unseals Arbitration Award Based On Common Law Right of Access

New Jersey Judge Denies Insurer’s Motion to Dismiss COVID-19 BI Claim

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Since the outbreak of the COVID-19 pandemic, most insurers throughout the country have denied business interruption (BI) claims received from their policy holders based on the economic losses they have suffered as a result of the virus. Many insurers rely on specific language contained in their policies that exclude claims arising from losses due to viruses, bacteria or … [Read more...] about New Jersey Judge Denies Insurer’s Motion to Dismiss COVID-19 BI Claim

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

Expect Increased New York State Regulatory Enforcement in the Banking and Financial Services Industry

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The New York Attorney General and the New York State Department of Financial Services are leaders in the efforts to fill in the regulatory gap in the wake of perceived reduction in federal enforcement. Read the full article here... … [Read more...] about Expect Increased New York State Regulatory Enforcement in the Banking and Financial Services Industry

Non-Concurrency Between Ceding Companies and Their Reinsurers for Communicable Disease Exclusions: The Next COVID-19 Shoe to Drop

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As COVID-19 continues to change our everyday way of life, its impact on the insurance/reinsurance industry also continues to develop. The reinsurance renewal process that many insurance companies recently went through exposes yet another impending issue the insurance industry will need to confront – non-concurrency between the coverage afforded by newly issued insurance … [Read more...] about Non-Concurrency Between Ceding Companies and Their Reinsurers for Communicable Disease Exclusions: The Next COVID-19 Shoe to Drop

Social Unrest: Covered or Not?

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Corporate Partner Dentons highlights the legal issues in assessing coverage for vandalism, looting, and related business interruption and civil authority claims. Legal Information To say we are living in unprecedented times in the insurance and reinsurance world, and everywhere else, would be a gross understatement. While we continue to work from home, insurers … [Read more...] about Social Unrest: Covered or Not?

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

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

The Revolution in Analysis of Cancer Causation and Genomics Liability

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Genes or the environment? Advances in genomics science provide a new legal framework for a genetic defense to toxic tort claims.   Legacy (re)insurers holding or acquiring toxic tort liabilities may be relying too heavily on outdated legal strategies to defend their policyholders. In our view, millions (perhaps billions) of dollars might be saved if reinsurers … [Read more...] about The Revolution in Analysis of Cancer Causation and Genomics Liability

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