Reinsurance

News & Analysis as of

Reinsurance Exclusion Bars Coverage For Bad Faith Lawsuit

A federal judge in North Carolina recently examined a reinsurance policy provision excluding loss “resulting from any claim for . . . any actual or alleged lack of good faith or unfair dealing in the handling of any claim or...more

Reinsurer Placed Under Order Of Rehabilitation

An Illinois circuit court entered an agreed order of rehabilitation against a reinsurer, Millers Classified Insurance Company, following a complaint for rehabilitation filed by the Illinois Department of Insurance. Millers...more

Court Affirms Reinsurance Arbitration Award But Directs Further Briefing On The Issue Of Sealing Documents

A federal district court in New York confirmed an arbitration panel’s final award, but directed the parties to brief the issue of whether the continued sealing of supporting documents, filed in connection with the petition to...more

Commutation, Settlement, And Release Agreement Of Legion Insurance Company (In Liquidation) Filed Under Seal And Approved

A Pennsylvania Court has approved the commutation, settlement and release agreement between Legion Insurance Company (In Liquidation) and Midwest Employers Casualty Company. Legion was judicially determined insolvent in 2003,...more

Seventh Circuit Denies Rehearing In Failed Attempt To Compel Arbitration And To Require Pre-Pleading Security From Uruguay...

On November 18, 2014, we reported on the Seventh Circuit’s decision in Pine Top Receivables of Illinois, LLC v. Banco de Seguros del Estado, in which Pine Top claimed that Banco de Seguros owed it $2,352,464.08 under certain...more

Third Circuit Evaluates The Definition Of “Materiality” In Rescission Claims

In a case on which we previously reported, the Third Circuit recently evaluated the legal standard for determining materiality in a claim for rescission of an insurance contract. The case involved a dispute between two...more

Reinsurer Found Prejudiced By Disadvantageous Commutations Resulting From Ceding Insurer’s Late Notice

A legal dispute stemmed from Utica Mutual Insurance Company’s late notice of claim to Fireman’s Fund Insurance Company, Utica’s reinsurer. Although the parties’ facultative reinsurance certificate required Utica to provide...more

Delaware Court Orders Bank To Turn Over $156 Million Of Reinsurer’s Assets To State Insurance Commissioner

The Delaware Court of Chancery has denied U.S. Bank, N.A.’s request for an order establishing its right to retain cash and securities valued at $156 million and maintained by Freestone Insurance Company, a reinsurer now in...more

Reinsurance-Related Dispute Stayed Pending Arbitration Despite Later Executed Settlement Agreement

Steadfast Insurance Company entered into a settlement agreement with its insured, Barton Malow Enterprises after agreeing to pay $15 million on Barton’s claim. The settlement included a complete release of all claims by...more

Court Denies Motions To Compel Production Of Documents Unrelated To Reinsurance Policies At Issue In Action

The dispute continues between Utica Mutual and Clearwater Insurance in the Northern District of New York where the court recently denied, in large part, the parties’ respective motions to compel discovery of insurance and...more

Alternative Capital Proving That For Reinsurers, Size Does Not Matter

The (re)insurance industry is changing and recent consolidations are signaling a momentous shift for customers too. Every once in a while the staid insurance and reinsurance industries go through a momentous change...more

Loss In English-Spanish Translation Can Cost Insurers

Some terms frequently found in (re)insurance contracts and statutes have different meanings in common law, English-speaking jurisdictions than they do in civil law, Spanish-speaking countries. It is critical for (re)insurers...more

Court Compels Discovery Of Reinsurance And Other Insurance Documentation From Insurer In Garnishment Proceedings

The judgment was entered in a class action by plaintiffs who lost their tuition payments for computer training programs at schools that abruptly closed in 2009. In attempting to collect on the judgment, plaintiffs served...more

Southern District Of New York: “If You Want Strict Application Of The Law, Don’t Agree To Arbitration Clauses.”

A federal judge in the Southern District of New York recently denied a motion to vacate an arbitration award in a reinsurance dispute, scolding the movant for complaining that the arbitrators reached a compromise verdict. The...more

Eye on Insurance - A Look Back at 2014 and Forward to 2015

Welcome to our annual “Eye on Insurance”, our round-up of notable developments during 2014, which are relevant to the London insurance and reinsurance markets. This update has been compiled by lawyers in Sedgwick’s London...more

Court Orders Production Of Reinsurance-Related Discovery

A federal district court has ordered Westchester Insurance to produce all files and documents in its possession evidencing any reinsurance agreements or related reinsurance communications that pertain to the insured’s policy...more

FY 2016 Budget Tax Proposals Target Insurance Companies

On February 2, the Obama Administration released its fiscal year 2016 budget (FY 2016 Budget). The hallmarks of the FY 2016 Budget are proposals that would impose (i) a minimum tax on the current foreign earnings of U.S....more

Reinsurer Obtains Award Of Attorney’s Fees Against Cedent That Failed To Timely Produce Electronically Stored Information

This case was brought by the cedent, Michigan Millers Mutual Insurance Co., seeking indemnity and expense payments arising from various underlying lawsuits, under a Casualty Excess Reinsurance Agreement. A discovery dispute...more

FIO Issues Report On Global Reinsurance Market And Its Importance To The U.S. Insurance Industry

On December 31, 2014, the Federal Insurance Office (FIO) issued a report entitled “The Breadth and Scope of the Global Reinsurance Market and the Critical Role Such Market Plays in Supporting Insurance in the United States.” ...more

Illinois Court Issues Corrected Opinion On Expenses Being Included In Reinsurance Limit

As we previously reported, an Illinois appellate court recently concluded that the limit stated on certain reinsurance certificates applied to both indemnity expenses as well as defense expenses, relying on the often cited...more

California’s “Third Party Litigation Exception” Not Preempted By The FAA

A California appellate court recently examined that state’s legislative response to the situation where a party moves to compel arbitration and some of the parties to the dispute are not parties to the arbitration agreement....more

Treaty Tip: Clarity In Reinsurance Contracts

Reinsurance agreements commonly contain a dollar limit on the liability of the reinsurer. Both the reinsured and the reinsurer benefit from clarity with respect to such limits. The reinsured benefits by knowing with precision...more

Court Approves $7 Million Settlement Agreement With Reinsurer In Reliance Insurance Company’s Liquidation

A Pennsylvania court overseeing Reliance Insurance Company’s liquidation proceedings approved the settlement agreement between Reliance and XL Reinsurance Company. The agreement allowed the liquidator to terminate and commute...more

Seventh Circuit Analyzes Its Jurisdiction Under the Panama Convention

International arbitration can be tricky, and it’s not often that the Seventh Circuit has an opportunity to analyze the grounds for its jurisdiction in this area. That makes the court’s recent decision in Pine Top Receivables...more

Connecticut Revises Financial Reporting Requirements

The Connecticut Insurance Department has issued two Bulletins revising certain financial reporting requirements for certain insurers. Bulletin FS-4AR-14 (November 25, 2014) revises the annual financial filing requirements...more

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