Reinsurance Redux - November 2012

In This Issue:

- Illinois District Court Finds Revenue-Sharing Agreement Between Reinsurer and Broker to be Ambiguous:

A Northern District of Illinois judge denied cross-motions for summary judgment filed by a reinsurer and the broker in their dispute over the reinsurer’s annual fee in a revenue sharing agreement because the operative language in the agreement was ambiguous. Homeowners Choice Inc. v. Aon Benfield Inc., No. 19-7700 (N.D. Ill. Sept. 10, 2012)

- Northern District of Illinois Upholds “Follow the Settlements” Clause of Reinsurance Treaty and Orders Reinsurer to Pay Underlying Settlement:

Upholding a reinsurance treaty’s “follow the settlements” clause and its application to the settlement of an underlying insurance dispute, the Northern District of Illinois recently granted summary judgment in favor of a plaintiff insurer and ordered the reinsurer to pay the underlying settlement. Arrowood Indemnity Co., et al. v. Assurecare Corp., No. 11-cv-05206 (N.D. Ill. Sept. 19, 2012)

- Southern District of New York Confirms Arbitration Award and Holds Arbitration Panel’s Refusal to Hear Certain Evidence Did Not Limit Reinsurer’s Right to a Fair Hearing:

The Southern District of New York recently granted a group of insurers’ petition to confirm a series of arbitration awards and denied a reinsurer’s cross-petition to vacate the awards holding an arbitration panel’s refusal to hear certain evidence did not limit reinsurer’s right to a full and fair hearing. Century Indemnity Co., et al. v. AXA Belgium, No. 11-cv-07263, 2012 WL 4354816 (S.D.N.Y. Sept. 24, 2012).

Please see full publication below for more information.

LOADING PDF: If there are any problems, click here to download the file.