In a recent decision originating from the United States District Court for the Southern District of New York, on remand from the Second Circuit Court of Appeals, the court held that (i) there was no basis for finding that joint liquidators for a Bermuda insurer were deficient or engaged in any misconduct, or that their actions resulted in any prejudice to reinsurer Commercial Union and (ii) that vacating the underlying arbitration award and granting injunctive relief would confer an undeserved benefit on Commercial Union.
Read More Federal Court Rules That Reinsurer Was Not Prejudiced By Redomestication of Insurer Carried Out Through Deceit
Reinsurance
Insolvent Insurer Ordered to Produce Documents Related to its Reinsurance
By Troutman Pepper Locke on
Midwest Employers Casualty Company (“MECC”) filed suit against Legion Insurance Company in the United States District Court for the Eastern District of Missouri seeking a declaration with respect to its liability under forty-three reinsurance contracts issued to Legion.
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Chile Considers Legislation To Modernize Its Insurance and Reinsurance Laws
The Chilean legislature was recently presented with a draft law designed to modernize the insurance and reinsurance provisions contained within Chile’s Code of Commerce. If enacted, the legislation would replace Chile’s current laws concerning private insurance and reinsurance in their entirety.
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UK: Court Considers Application for Stay in Favour of Texas Arbitration
By Troutman Pepper Locke on
Posted in Reinsurance, United Kingdom
On 17 July in Equitas Limited v Allstate Insurance Company [2008] EWHC 1671 Mr Justice Beatson handed down his decision on whether Allstate was entitled to a stay of the instant proceedings initiated by Equitas in March 2008.
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Court of Appeals Denies Cedent’s Motion to Appeal Ruling That Reinsurer Not Obligated to Follow Settlement Allocation
By Troutman Pepper Locke on
About a year ago, www.insurereinsure.com reported on the New York Appellate Division’s ruling in Allstate Ins. Co. v. American Home Assurance Co., No. 9335 (App. Div., 1st Dept. June 12, 2007), which reversed a lower court’s decision and held that Allstate was not required to follow the fortunes of American Home’s loss allocation on a single occurrence “per site” basis, finding that American Home manipulated its allocation to exceed the facultative reinsurance contract’s $1 million per-occurrence deductible in order to maximize its reinsurance recoveries.
Court Vacates Arbitration Awards Because Arbitrators Improperly Assumed Jurisdiction
By Troutman Pepper Locke on
In a recent decision from the United States District Court for the Eastern District of Washington, Olsen v. United States, No. CV-06-5020-FVS (E.D. Wash. Mar. 10, 2008), the court vacated several arbitration awards on the grounds that the reinsurer was not bound by the arbitration agreement in contracts between the ceding company and its insureds, and the arbitrators did not have jurisdiction to preside over the disputes between the parties. …
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Post Hall Street, Federal Courts Differ On the Application of Manifest Disregard of the Law
By Troutman Pepper Locke on
Over the last few months, www.insurereinsure.com has reported on the U.S. Supreme Court’s landmark decision in Hall Street Associates v. Mattel, Inc., 128 S.Ct. 1396 (2008) (click here to view previous post), which held that parties could not contract to expand the grounds for vacatur or modification of arbitration awards under the Federal Arbitration Act (“FAA”), and the potential impact its holding might have on the doctrine of manifest disregard of the law (click here to view previous post). …
Read More Post Hall Street, Federal Courts Differ On the Application of Manifest Disregard of the Law
Brazil Issues New Regulations Governing Maximum Cession Levels To Occasional Reinsurers
By Troutman Pepper Locke on
Brazil’s insurance regulator, the Superintendency of Private Insurance (SUSEP), recently issued regulations establishing that cessions to occasional reinsurers (see definition below) by Brazilian insurers may not exceed 10% of the total premiums ceded to reinsurers. The new regulations further establish that no Brazilian insurer may cede more than 50% of the risk it underwrites to occasional reinsurers. The moves were not unexpected, having been foreshadowed in SUSEP’s discussions with the industry. …
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Arbitration: Second Circuit Finds That Order Denying Motion to Dismiss Is Not Appealable
By Troutman Pepper Locke on
The United States Court of Appeals for the Second Circuit recently held that an order denying a party’s motion to dismiss an application for a preliminary injunction was not an immediately appealable decision under the “final order rule,” on the grounds that the court lacked jurisdiction to hear it.
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New Jersey Considers Catastrophe Fund
By Troutman Pepper Locke on
Last month, New Jersey Senate Majority Leader Stephen Sweeney reintroduced the New Jersey Consumer Catastrophe Preparedness and Protection Bill, S.2089 (the “Bill”), which, if enacted, would create the New Jersey Catastrophe Fund (the “Fund”).