News & Analysis as of

Arbitration Reinsurance Insurance Industry

Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties... more +
Arbitration is a widely-used method for settling disputes between parties. During arbitration, parties submit their dispute to an impartial third person or party, usually chosen by the parties. Typically, parties to arbitration agree in advance to be bound by the arbitrator's decision. Arbitration is an alternative to litigation, but it shares many of the familiar features of litigation. Namely, parties to arbitration hold hearings before neutral decision-makers, present evidence and argue the merits of their position. Parties often choose arbitration due to its perceived advantages over litigation. Those perceived advantages include greater efficiency and flexibility, and lower costs. less -
BCLP

English Court Decides COVID-19 is a “Catastrophe”

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The English Court has, for the first time, considered the meaning of a “catastrophe”, as well as how Hours Clauses work in the context of non-damage business interruption losses claimed under two Property Catastrophe Excess...more

Hinshaw & Culbertson - Insights for Insurers

The Second Circuit May Well Reconsider Reverse-Preemption of The New York Convention by the McCarran-Ferguson Act

A significant number of states prohibit or restrict the arbitration of disputes between an insurer and its policyholder and/or preclude the inclusion of arbitral provisions in insurance policies.The McCarran-Ferguson Act...more

NAM (National Arbitration and Mediation)

Some Thoughts On Insurance And Reinsurance Mediation

Having served as a commercial mediator for the Southern District of New York mediation program for 28 years, I have some thoughts about the use of mediation to resolve insurance and reinsurance disputes. My perspective is...more

White and Williams LLP

Third Circuit Clarifies Standards Governing Confidentiality of Litigation Documents

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As an update to our April 1, 2019 Reinsurance Alert, the Third Circuit Court of Appeals recently affirmed the U.S. District Court for the Middle District of Pennsylvania’s holding in Pennsylvania National Mutual Casualty...more

Locke Lord LLP

It’s Not Over … Until The Panel Sings

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A federal court in New York recently held that an arbitration panel retained the right to resolve any dispute arising out of an arbitration award. In Chicago Insurance Company v. General Reinsurance Corporation et al., no....more

Clark Hill PLC

A Gentlemen’s Agreement Broken: Life and Annuity Reinsurance Arbitration

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As late as the 1980s, the vast majority of U.S. reinsurance arbitrations were handled in-house. An in-house lawyer from the cedent and reinsurer presented their respective cases at a day-long hearing before a panel of...more

BCLP

No spiking allowed - Reinsurers’ appeal is successful in Equitas v MMI

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The Court of Appeal’s highly anticipated judgment in Equitas v MMI has been handed down today (17 April 2019). The decision is the latest ruling in the long running saga and represents an important victory for reinsurers....more

Locke Lord LLP

Although They Did Not Enter a Reinsurance Lottery, They Won The Jackpot

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A California Court of Appeal recently affirmed a trial court’s denial of an insurer’s motion to compel arbitration, finding that the trial court had the authority to decide the issue of the enforceability of an arbitration...more

White and Williams LLP

PA District Court Holds Newly Formed Arbitration Panel Should Decide Consolidation Dispute

In Pennsylvania National Mutual Casualty Insurance Company v. Everest Reinsurance Company, the U.S. District Court for the Middle District of Pennsylvania held that procedural issues relating to the interpretation of...more

BCLP

Insurance and Reinsurance Update

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This is our pick of the key recent legal and regulatory issues affecting the insurance and reinsurance sector. Non Party PI Insurers Liable for Costs - In the January 2019 case of Various Claimants v Giambrone the...more

Locke Lord LLP

Don’t Throw Me into the Briar Patch – Consolidation of Reinsurance Arbitration

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Employers Insurance Company of Wausau (“Wausau”) recently was adverse to The Hartford (“Hartford”), creating a procedural briar patch in a California federal court over the issue of consolidation of multiple disputes under...more

Carlton Fields

Court Construes Reinsurance Participation Agreement, Rejects Venue Objection, and Confirms Arbitration Award

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O’Connell Landscape Maintenance, Inc. (O’Connell) and Applied Underwriters Captive Risk Assurance Co. (AUCRA) entered into a reinsurance participation agreement (RPA)....more

Carlton Fields

Second Circuit Joins Sister Circuits in Holding Party-Appointed Arbitrators Not Subject to Same Disclosure Requirements as Neutral...

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The Second Circuit recently held that parties seeking to vacate awards under Federal Arbitration Act Section 10(a)(2) must satisfy a higher burden in showing evident partiality by a party-appointed arbitrator. ...more

Locke Lord LLP

How To Lose the Right To Arbitrate In One Easy (Mis)Step

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The recent decision of Nielsen Contracting, Inc. v. Applied Underwriters, Inc., 232 Cal.Rptr.3d 282 (Cal. App. 4 Dist. 2018) provides a cautionary tale of the failure to comply with insurance regulatory filing requirements of...more

Carlton Fields

Decade-Long Battle Between Policyholder, Reinsurer, And Retrocessionaire To Continue As Reinsurer Files Notice Of Appeal

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A Brazilian mining and steelmaking company (Companhia Siderurgica Nacional, S.A. (“CSN”)), a Brazilian insurance company (IRB Brazil Resseguros, S.A. (“IRB”)), and an American insurance company (National Indemnity Company...more

Carlton Fields

Court Vacates Arbitration Award In Crop Insurance Dispute That Awarded Remedies Preempted By Federal Law

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The plaintiff, a farming company, demanded arbitration against Diversified Crop Insurance Services over the nonpayment of federally reinsured claims....more

Carlton Fields

Court Applies The “Intertwined-Ness Test” To Find That A Non-Signatory Could Invoke Equitable Estoppel To Compel Arbitration

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The court applied a two-part “intertwined-ness test” to determine whether an arbitration agreement allowed a non-signatory to invoke equitable estoppel to compel arbitration....more

Carlton Fields

U.K. Court Of Appeal Finds Experienced “Insurance Or Reinsurance” Lawyers Are Eligible For Appointment To Arbitration Panel Under...

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The U.K. Court of Appeal has held that an arbitration clause commonly found in London market excess of loss reinsurance treaties does not prohibit the appointment of insurance or reinsurance lawyers to an arbitration panel....more

Cooley LLP

Blog: Court of Appeal addresses “experience of insurance or reinsurance” for the purposes of appointing an arbitrator

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In Allianz Insurance PLC & Ors v Tonicstar Limited [2018] EWCA Civ 434, the Court of Appeal decided that, under an arbitration clause requiring the appointed arbitrators to have “not less than ten years’ experience of...more

Carlton Fields

Court Enforces Arbitration Award, Finds Reinsurer Must Pay Settlement Between Retrocessionaire And Policyholder

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Granting a motion to enforce an arbitration award, the U.S. District Court for the Southern District of New York has held that a reinsurer is liable for a $5 million settlement entered into between a policyholder and the...more

Carlton Fields

Insurance Receiver’s Preemption Argument Under Mccarran-Ferguson Fails To Avoid Arbitration Of Reinsurance Dispute

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The receiver for Gramercy Insurance Company sought to avoid arbitration of a reinsurance dispute with Contractor’s Bonding, Ltd., by arguing the FAA was reverse preempted under the McCarran-Ferguson Act....more

Carlton Fields

California Court Considers Enforceability Of Arbitration Clause In Reinsurance Related Agreement Applying Nebraska Law

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In a case involving a reinsurance participation agreement (RPA), a California trial court has examined the interplay between two seemingly irreconcilable contract provisions: one that provided for the arbitration of any...more

Locke Lord LLP

NEBRASKA: A Good Home for Berkshire Hathaway, but not for Reinsurance Agreements

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A Cornhusker by birth, I’ve always had a special affinity for Nebraska, and particularly Omaha, where I was raised. My only regret is that I was neither old nor rich enough to participate in Mr.Buffet’s original partnership....more

Carlton Fields

Court Compels Discovery, Awards Sanctions In Dispute Over Whether Reinsurance Arbitration Clause Applies

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In 2011, Top’s Personnel entered into a reinsurance agreement with Applied Underwriters Captive Risk Assurance Company (“AUCRA”), and several years later executed a promissory note (“the Note”) in favor of a related entity,...more

Carlton Fields

Alabama Federal Court Finds Cedent Did Not Waive Arbitration, And Orders Reinsurance Dispute To Be Arbitrated

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Alabama Municipal Insurance Corp. (“AMIC”), an Alabama non-profit public insurer, brought suit in Alabama federal court against Munich Reinsurance America Inc. (“Munich Re”), alleging breach of a reinsurance contract for...more

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