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Suffolk Federal Credit Union (“SFCU”) brought an action against Cumis Insurance Society to recover certain losses arising under a fidelity bond.  During discovery, SFCU served interrogatories, that included a request that Cumis disclose the identity of any reinsurance agreement that might indemnify Cumis for the losses at issue. …
Read More Federal Court Orders Insurer to Produce Reinsurance Information, Despite Acknowledging Split Among Courts on the Issue

The U.S. Court of Appeals for the Second Circuit recently affirmed a district court decision that remanded to state court a lawsuit asserted by the Liquidator of Midland Insurance Company against its reinsurer, Dunav Re, finding that the Service of Suit clause in the reinsurance treaties at issue unambiguously waived Dunav Re’s right to remove the dispute to federal court. …
Read More Second Circuit Finds That Service of Suit Provision in Treaties Unambiguously Waived Reinsurer’s Right of Removal

In a case we have been following on www.insurereinsure.com, Louisiana Safety Association of Timbermen – Self Insured Fund v. Certain Underwriters at Lloyd’s, London, the U.S. Supreme Court declined to grant certiorari to hear a dispute between an insurance pool and its reinsurer concerning whether the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”) preempts a Louisiana statute that bars enforcement of arbitration agreements in insurance or reinsurance contracts. …
Read More U.S. Supreme Court Refuses to Hear Dispute Concerning Preemptive Effect of New York Convention on State Law Barring Arbitration

Recently, the U.S. Court of Appeals for the Second Circuit affirmed a district court’s ruling denying the motion of plaintiffs-appellants (collectively “LSED”) to compel arbitration of a dispute with Merrill Lynch, Pierce, Fenner & Smith Inc. (“MLPFS”), finding that LSED waived its right to arbitrate by litigating the case for nearly a year before filing its motion. …
Read More Second Circuit Determines Party Waived its Right to Arbitrate

The U.S. Court of Appeals for the Third Circuit recently affirmed a District Court’s vacatur of an arbitration award because the arbitration panel exceeded its authority in ordering relief not sought by either of the parties and removing from the parties’ reinsurance agreement a material provision. …
Read More Third Circuit Affirms District Court’s Vacatur of Arbitration Award, Finding That the Panel Exceeded its Powers by Awarding Relief Not Sought by Either Party

Earlier this week the commissioner (the “Commissioner”) of the Florida Office of Insurance Regulation (“FOIR”) announced that the FOIR entered into reduced collateral agreements with three alien reinsurers pursuant to Section 690-144.007 of the Florida Administrative Code (the “Rule”). …
Read More Alien Reinsurers Enter Florida Property and Casualty Market Under Reduced Collateral Rule

R&Q Reinsurance Co. v. American Motorist Ins. Co., involved a dispute arising under a series of reinsurance treaties entered into by the parties.  Pursuant to the arbitration clauses in the treaties, their dispute was heard by a panel of arbitrators, which issued its “Final Award” on February 5, 2010. …
Read More Illinois Federal Court Rules that Reinsurer’s Motion to Vacate Arbitration Award is Untimely Under the Federal Arbitration Act

In Travelers Casualty & Surety Co. v. Insurance Co. of North America, Nos. 06-4100, 06-4101 and 08-1032 (2010), the U.S. Court of Appeals for the Third Circuit affirmed the District Court’s decision holding that a cedent’s settlement allocation was reasonable and binding on the reinsurer, except for the portion of the allocation that was based upon annualized per-occurrence limits for multi-year policies. …
Read More Third Circuit Rules that Follow the Fortunes Doctrine Binds Reinsurer to Part, But Not All, of a Cedent’s Post-Settlement Allocation

We previously blogged about the District of Connecticut’s decision in Arrowood Surplus Lines Ins. Co. v. Westport Ins. Corp., No. 08-cv-1393 (D. Conn. 2010), in which the court held that a reinsurer had no duty to honor the portion of a cedent’s loss that was outside the scope of the reinsurance agreement at issue.  In that case, Equity Residential argued that a policy issued to it by Arrowood Surplus Lines Insurance Company had a three-year period and sought coverage for losses that occurred from December 15, 1999 to December 15, 2002.
Read More Second Circuit Finds that Portion of Cedent’s Loss is Outside the Scope of the Reinsurance Agreement, Relieving Reinsurer of any Obligation to Follow the Fortunes