Arbitration in general is intended as an alternative to litigation in the courts. For good reasons, courts rarely intervene in pending arbitrations and instead require the parties, under most circumstances, to wait for a final award before seeking redress for perceived grievances in the arbitration process. Indeed, the Federal Arbitration Act, 9 U.S.C. § 1, et seq. (“FAA”), … [Read more...] about When Courts Peek Under the Arbitral Veil: The Role of the Courts in Managing Your Reinsurance Arbitration
Legal Updates
Assaulting the Bellefonte Citadel: Reinsurers Win…Not So Fast
In the 1990 landmark decision of Bellefonte Reinsurance Co. v. Aetna Cas. & Sur. Co., 903 F.2d 910 (2d Cir. 1990), the Second Circuit Court of Appeals held that the reinsurer’s liability was capped at the dollar amount stated in the “Reinsurance Accepted” provision of the applicable facultative certificate. In doing so, the court relied on the portion of the … [Read more...] about Assaulting the Bellefonte Citadel: Reinsurers Win…Not So Fast
AIRROC Dispute Resolution: Adding Simplified Mediation to Your Toolbelt
Is the Duty of Utmost Good Faith in Runoff?
For centuries the venerable duty of utmost good faith has served as a bedrock principle of the reinsurance industry: a standard that has set reinsurance contractual relationships apart from other commercial transactions governed by “caveat emptor.” However, a number of commentators in the industry have questioned whether the duty of utmost good faith has been in … [Read more...] about Is the Duty of Utmost Good Faith in Runoff?
Walking the High Wire: The Discoverability of Insurer/Reinsurer Communications in Insurance Coverage Litigation
In insurance coverage litigation, cedants and reinsurers have a common financial interest in the investigation and adjustment of complex, high-dollar or questionable claims. In the real world, a joint financial interest is the firmest of foundations for expectations of confidentiality. Cedants have a duty to keep reinsurers informed, and reinsurers may decide to join in the … [Read more...] about Walking the High Wire: The Discoverability of Insurer/Reinsurer Communications in Insurance Coverage Litigation
