In Midwest Employers Cas. Co. v. Legion Ins. Co. (In Liquidation), No. 4:07CV870 CDP (E.D. Mo. Nov. 7, 2007), Midwest Employers Casualty Company (“MECC”) sought a declaration that the demand for arbitration from Legion Insurance Company under forty-three reinsurance contracts that did not contain arbitration clauses was null and void.
Read More Missouri District Court Rules That Suit Against Insurer in Liquidation Can Proceed in Federal Court
Reinsurance
Massachusetts Court Orders Discovery of Reinsurance Agreements
By Troutman Pepper Locke on
A Massachusetts trial court recently ordered a defendant insurer to produce reinsurance agreements during discovery in a coverage dispute. Neles-Jamesbury, Inc. v. Liberty Mutual Ins. Co., C.A. No. 02-0982A (October 11, 2007). …
Read More Massachusetts Court Orders Discovery of Reinsurance Agreements
Massachusetts Considering Creation of Catastrophe Fund and Other Reforms to Address Coastal Insurance Problems
By Troutman Pepper Locke on
A Massachusetts Special Commission recently recommended that Massachusetts create a catastrophe fund to reduce the cost of coastal insurance within the Commonwealth. Click here to review the Special Commission’s Report.
Landmark Victory For Reinsurers of Insolvent Integrity Insurance Company
In a matter of first impression under New Jersey law that potentially impacts both the reinsurance and insurance industry and policyholders of insolvent insurance companies, the New Jersey Supreme Court affirmed the appellate division’s ruling that the Fourth Amended Final Dividend Plan (the “FDP”) proposed by the Liquidator for Integrity Insurance Company (“Integrity”) should not be approved because it unlawfully allowed incurred but not reported (“IBNR”) claims to share in the insolvent insurer’s estate. …
Read More Landmark Victory For Reinsurers of Insolvent Integrity Insurance Company
Pennsylvania Appellate Panel Enforces Arbitration Clause in Reinsurance Agreement
By Troutman Pepper Locke on
A Pennsylvania appellate court recently reversed a trial court’s ruling that denied a cedent’s motion to compel arbitration, finding that the existence of a service of suit clause in the reinsurance agreement did not render the arbitration clause meaningless.
…
Read More Pennsylvania Appellate Panel Enforces Arbitration Clause in Reinsurance Agreement
Policy construction: The English Commercial Court has construed the terms of a business interruption policy
By Troutman Pepper Locke on
In Coromin Ltd v AXA Re & Ors [2007] EWHC 2818 (Comm), the Commercial Court considered whether Coromin was entitled to be indemnified by its reinsurers for the physical damage and business interruption losses suffered by its insured as a result of a defective mill motor at a copper mining and processing facility in Chile.
Contesting an Arbitration Award? Seventh Circuit Affirms That Statute of Limitation Runs From Date the Award is Sent
In a ruling that may impact the world of commercial arbitrations, the United States Court of Appeals for the Seventh Circuit affirmed a district court’s denial of a motion to vacate an arbitration award on the basis that it was filed one-day too late.
Florida to Change Foreign Reinsurer Collateral Requirements
By Troutman Pepper Locke on
As we previously discussed here, the move to change the rules governing collateral requirements for foreign reinsurers has been gaining momentum in a number of U.S. states. New York started the trend last October, when its Superintendent of Insurance, Eric Dinallo, introduced a draft regulation that seeks to eliminate the existing collateral requirements imposed on foreign and alien reinsurers operating in New York. …
Read More Florida to Change Foreign Reinsurer Collateral Requirements
NAIC Adopts Memorandum outlining Framework for Reinsurance Regulatory Modernization
By Troutman Pepper Locke on
This post serves as an update to our postings on June 7, September 12, October 9, and October 19.
During the winter meeting of National Association of Insurance Commissioners (“NAIC”) (November 30 through December 4, 2007), the Reinsurance Task Force (“Task Force”) of the Financial Condition (E) Committee unanimously adopted a framework memorandum outlining a three-part approach to modernizing current U.S. reinsurance regulation.
…
Read More NAIC Adopts Memorandum outlining Framework for Reinsurance Regulatory Modernization
House Passes Homeowners’ Defense Act, Senate Introduces Companion Legislation
By Troutman Pepper Locke on
Last week, the United States House of Representatives passed the Homeowners’ Defense Act of 2007 by a vote of 258-155, a day after Senators Hillary Rodham Clinton and Bill Nelson introduced companion legislation in the Senate. We have previously reported on the Act here and here.
…
Read More House Passes Homeowners’ Defense Act, Senate Introduces Companion Legislation