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On Tuesday, March 1, 2011, the U.S. Reinsurance Under 40s Group will be hosting an event at Lucky Strikes Lane in New York City, which is located at 624-660 West 42nd Street.  The event goes from 7:00 pm to 10:00 pm, and will be held in a private room within Lucky Strikes (the “Luxe Suite”) that includes a private bar, four private bowling lanes, HD projection screen and a pool table. …
Read More Come Join the U.S. Re Under 40’s on March 1st at Lucky Strikes Lane in NYC

Aon International Energy, Inc. (“Aon Energy”) has entered a $36,000 settlement with the Office of Foreign Assets Control (“OFAC”) after allegations that the broker violated the Iranian Transactions Regulations.  Aon Energy served as a broker on behalf of a European reinsurance company and placed facultative retrocession reinsurance with two European retrocessionaires. …
Read More Aon Energy Settles with OFAC After Alleged Sanctions Violations

In 2009, we reported on an action brought by Callon Petroleum Company (“Callon”) against National Indemnity Company (“NICO”) to recover for a judgment Callon obtained against NICO’s cedent, Frontier Insurance Company (“Frontier”). …
Read More New York Federal Court Rules That No Contractual Privity Exists Between Third Party Claimant and Reinsurer

The U.S. Court of Appeals for the Seventh Circuit recently issued its opinion in Trustmark Ins. Co. v. John Hancock Life Ins. Co., a case that both the reinsurance and general arbitration communities have been following closely.  In a unanimous opinion, the Seventh Circuit reversed the District Court’s decision to hold that a party-appointed arbitrator’s prior involvement in an earlier arbitration between the parties did not disqualify him or render him incapable of serving in a subsequent arbitration involving related issues. …
Read More Seventh Circuit Unanimously Lifts Injunction Issued in Arbitration, Holding that Arbitrator’s Service in Prior Arbitration Between the Parties Involving Overlapping Issues Did Not Disqualify Him from Serving in Subsequent Arbitration

The administrator who is running off the business of English (re)insurer GLOBAL General & Reinsurance Company Ltd filed a petition under Chapter 15 of the United States Bankruptcy Code with the federal bankruptcy court in Manhattan yesterday.  The petition asks for the court’s assistance with the last of four Schemes of Arrangement for GLOBAL, which was sanctioned by the High Court of Justice for England & Wales on January 28, 2011. …
Read More GLOBAL General & Reinsurance Company Ltd Seeks US Court Assistance in Aid of Last of Four UK Runoff Schemes

We have been following on www.insurereinsure.com various decisions that concern whether state laws that bar enforcement of arbitration agreements in insurance or reinsurance contracts are preempted by the Federal Arbitration Act (the “FAA”).  As noted here (insert link to Dec. 29th post), the U.S. Supreme Court recently declined to review the Fifth Circuit’s holding that the Convention on The Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”), implemented by the FAA, preempts and supersedes Louisiana state law precluding enforcement of arbitration agreements. …
Read More Oklahoma Federal Court Declares Arbitration Clause in Insurance Contract Unenforceable, Not Preempted by the FAA

In OneBeacon America Insurance Co. v. Swiss Reinsurance America Corporation, 09-CV-11495-PBS (D.Mass. December 23, 2010), a motion was brought by petitioner OneBeacon to vacate an arbitration award on the basis that the arbitrators were guilty of misconduct for refusing to permit necessary discovery and hear certain evidence. The main issue in the arbitration itself concerned contract interpretation, but OneBeacon relied upon industry custom and practice to support its case. …
Read More Massachusetts Federal Court Addresses Manifest Disregard of the Law Standard, Finds that Panel’s Decision to Limit Discovery and Witness Testimony did not Provide a Basis to Vacate Award

We recently blogged about the Second Circuit’s decision in Arrowood Surplus Lines Ins. Co. v. Westport Ins. Corp., No. 10-cv-0397 (2d Cir. 2010), in which an appellate panel held that a reinsurer had no obligation to indemnify its cedent for losses outside the scope of the treaty at issue.  Click here to review a copy of that blog post.
Read More Second Circuit Denies Cedent’s Motion for a Rehearing in Follow the Fortunes Case

In Goldman Sachs Execution & Clearing, L.P. v. The Official Unsecured Creditors’ Committee of Bayou Group, LLC, et al., Slip Copy, 2010 WL 4877847 (S.D.N.Y. 2010), the court denied petitioner’s motion to vacate a $20.580 million award obtained in a FINRA arbitration by The Official Unsecured Creditors’ Committee of Bayou Group (“OUCCBG”). …
Read More New York Federal Judge Provides Interesting Insights Regarding Arbitration and “Manifest Disregard of the Law”