Reinsurance

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Recently, in Argonaut Ins. Co. v. Century Indemnity Co., No. 05-5355 (E.D. Pa. September 5, 2007), the United States District Court for the Eastern District of Pennsylvania was asked to determine which of four arbitration panels should decide the question of whether individual arbitration proceedings should be consolidated. 

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Read More Court Rules That Four Separate Panels Must Resolve Arbitration Consolidation Issues

Recently, the California Supreme Court held that the alleged victims of child abuse by certain priests in the Catholic Church will not have access to the reinsurance information of the defendant Church’s nonparty liability insurers in the course of discovery. 

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Read More California Supreme Court Finds Reinsurance Information Outside the Scope of Discovery Rules

According to a recent report from credit rating agency Fitch Ratings, subprime lending exposure is not expected to present a significant rating issue for the reinsurance sector.  Noting that reinsurers typically seek to generate underwriting income rather than spread-based income, Fitch observes that most reinsurers have avoided heavy investments in subprime mortgage-backed securities. 

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Read More Subprime Lending Unlikely to Impact Reinsurance Sector: Rating Agency

On remand for further proceedings from the Connecticut Supreme Court, the Appellate Court of Connecticut recently agreed with plaintiffs Hartford Accident and Indemnity Company and thirteen of its affiliates’ statutory interpretation of Connecticut General Statutes § 38a-27, holding that the plaintiffs are entitled to prepleading security from defendants Ace American Reinsurance Company and various other foreign reinsurance companies. 

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Read More Connecticut State Court Rules That Service On Designated Agents For Process Sufficient And Orders Hearing On Amount Of Prepleading Security To Be Posted

The Reinsurance Association of American (“RAA”) recently joined a reinsurer in urging the United States Court of Appeals for the Tenth Circuit to overturn a decision of the Northern District of Oklahoma that held that Oklahoma’s Uniform Arbitration Act (the “Oklahoma Act”) prohibits arbitration agreements in reinsurance contracts. 

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Read More Enforceability of Arbitration Agreements to be Decided by Tenth Circuit

In National Union Fire Ins. Co. of Pittsburgh, Pa. v. Clearwater Ins. Co., 04-CV-5023 (S.D.N.Y., July 21, 2007), the Southern District of New York denied a cedent’s motion for summary judgment based on the follow the fortunes doctrine, finding that a material issue of fact existed as to whether a portion of a settlement involved payment for consequential damages claims that would be excluded under the reinsurance certificate at issue. 

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Read More Southern District of New York Denies Summary Judgment to Cedent in Case Involving 3M Settlement

In a dispute concerning the appointment of an umpire in a reinsurance arbitration, the federal district court of Connecticut held that it, and not the parties, should appoint the umpire and appointed Robert M. Hall to serve on the arbitration panel. 

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Read More Federal District Court in Connecticut Appoints Umpire in Reinsurance Arbitration

In Jurupa Valley Spectrum, LLC v. National Indem. Co., et al., 06 Civ. 4023 (S.D.N.Y., June 29, 2007), the Southern District of New York examined whether a beneficiary of surety bonds had standing to bring a cause of action for bond payments against the reinsurer of a bond issuer. 

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Read More Beneficiary of Surety Bond Lacks Standing to Assert a Direct Action Against Reinsurer