The United States District Court for the Southern District of New York recently held that an arbitrator was not precluded by the doctrine of functus officio from modifying his findings regarding a prior award in a dispute between parties, since that award did not resolve the question of damages related to a particular issue and thus was not “final.”
Reinsurance
Florida House Committee Passes Legislation to Expand Private Reinsurance Market
By Troutman Pepper Locke on
On Thursday, the Florida House Committee unanimously passed a bill backed by Chief Financial Officer Alex Sink requiring insurer’s that buy into the state’s catastrophe fund to purchase reinsurance from the private market. It was estimated that the bill, which was backed by Republican’s such as Ron Reagan, could inject as much as $3 billion of limits back to the private reinsurance market. …
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Court Rules That Reserve Information and Reinsurance Communications Are Not Relevant to Bad Faith and Consumer Protection Claims
By Troutman Pepper Locke on
In a recent decision from the United States District Court for the Western District of Washington at Seattle, Heights at Issaquah Ridge Owners Association v. Steadfast Ins. Co., Case No. C07-1045RSM (W.D.Wa. Dec. 13, 2007), the court denied the plaintiff’s motion to compel an insurer to produce loss reserve information because the plaintiff did not assert how such information would be relevant to its bad faith claim.
New York Court Finds That a Factual Issue Exists as to Whether a Cedent’s Allocation was in Bad Faith and Constitutes an Ex Gratia Payment
By Troutman Pepper Locke on
The New York Appellate Division, First Department, recently denied a reinsurer’s motion for summary judgment, finding that an issue of fact existed as to whether a cedent’s allocation of an underlying claim to a reinsured policy was made in bad faith and constituted an ex gratia payment.
Reinsurance Arbitration Predominates
By Troutman Pepper Locke on
From time to time, we are asked about the prevalence of arbitration over litigation as a forum for resolving reinsurance disputes. Vince Vitkowsky recently conducted a survey of the attorneys at Edwards Angell Palmer & Dodge, LLP, in both the US and England, as to to their experience.
Brazilian Bank Seeks Authorization for Reinsurance License
Parana Banco, a Brazilian bank, recently sought authorization to form the country’s first ever private-sector reinsurer. Parana Banco indicated that the reinsurer, which will be named J. Malucelli Resseguradora S.A., will have nearly $40 million in capital and initially provide reinsurance cover only for surety bonds issued by J Malucelli Seguradora, the insurance unit of the bank. …
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Lloyd’s to Apply for Admission as a Reinsurer in Brazil
By Troutman Pepper Locke on
Lloyd’s announced on 13 February that it will be making a formal application to be admitted as a reinsurer in Brazil with plans to set up its first representative office in Rio de Janeiro, subject to regulatory approval.
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Hong Kong: Regulatory: China Insurance Regulatory Commission Issues a New Regulation, “Circular Concerning Risk Issues in Reinsurance Business”
By Troutman Pepper Locke on
On 28th November 2007 the China Insurance Regulatory Commission (CIRC) issued a new regulation, “Circular Concerning Risk Issues in Reinsurance Business” (the “Circular”). The Circular tightens up controls on foreign reinsurers to minimise risks in reinsurance transactions by setting out specific financial rating and capital requirements and further evidences the CIRC’s commitment towards the steady and regulated development of the Chinese reinsurance market.
Non-Signatory Compelled to Arbitrate Claims Against Reinsurer
The United States District Court for the Eastern District of Pennsylvania recently ruled that a non-signatory insured was obligated to arbitrate her claims against a reinsurer pursuant to the reinsurance contract’s arbitration provision, finding that the insured was a third-party beneficiary of that contract.
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Connecticut Supreme Court Rules that “Common Cause” Provision of Reinsurance Treaty Is Ambiguous With Respect to the Aggregation of Claims
In Hartford Accident and Indemnity Co, et al. v. Ace American Reinsurance Co., et al., No. 17625 (Sup. Ct. Conn. Dec. 25, 2007), the Connecticut Supreme Court found a “common cause” provision in a reinsurance treaty to be ambiguous for purposes of whether multiple asbestos claims could be aggregated as a single occurrence, reversing the lower court’s decision granting summary judgment to the defendant reinsurers. …
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