A recent decision originating from the United States Court of Appeals for the Second Circuit has established a new standard for determining issues of arbitrator bias.
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Reinsurance
Travelers Enters Settlement with ACandS, Ending “Potentially Unlimited” Exposure; Plan Includes Reinsurance Allocation
By Troutman Pepper Locke on
The Travelers Companies, Inc. has announced a settlement with ACandS Inc. to resolve all current and future asbestos-related coverage claims. ACandS, an insulation contractor, has been undergoing Chapter 11 reorganization since 2002, and its bankruptcy counsel has described the Travelers insurance coverage as “the most important asset of ACandS’s bankruptcy estate.”
District Court Enforces Arbitration Agreement
By Troutman Pepper Locke on
On January 20, 2006, Century Indemnity Company filed suit in the United States District Court for the Southern District of New York against Clearwater Insurance Company (“Clearwater”) seeking payment under a facultative reinsurance certificate that contained an arbitration clause.
Reinsurer Not Obligated to Follow Cedent’s Settlement Allocation
By Troutman Pepper Locke on
On June 12, 2007, a New York appellate court reversed a lower court’s decision and held that a reinsurer was not required to follow the fortunes of a cedent’s loss allocation on a single occurrence “per site” basis, finding that such allocation, which allowed the cedent to exceed the facultative reinsurance contract’s $1 million per-occurrence deductible with respect to certain sites, was unreasonable.
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District Court Orders Insurer to Produce Reinsurance, Reserve and Other Claims-Related Information
By Troutman Pepper Locke on
Recently, a magistrate judge presiding over an insurance coverage case involving more than a dozen insurers and one insured granted the insured’s motion to compel production of documents and information pertaining to reinsurance, loss reserves, claims handling manuals, and document retention policies.
Federal Court Rejects Cedent’s Argument that Follow-the-Settlements Clause is Implied in Facultative Certificates
By Troutman Pepper Locke on
Posted in Reinsurance, United States
Recently, the United District for the Northern District of California rejected a cedent’s contention that the follow-the-settlements clause is implied in reinsurance contracts. See American Motorists Ins. Co. v American Re-Insurance Co., No. C5-5202 (N.D. Cal. May 29, 2007).
FAA’s Time Limitations Do Not Apply to Non-Party to Arbitration Agreement
By Troutman Pepper Locke on
In R&Q Reins. Co. v. Rapid Settlements, Ltd., and Gwendolyn Sands Brown, No. 06-14329 (S.D. Fla. May 14, 2007), R&Q Reinsurance Company (“R&Q”) was obligated to make periodic payments to an underlying insured, Gwendolyn Brown (“Brown”), under the terms of a structured settlement agreement entered into to resolve a personal injury claim.
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Third Circuit Rules that Consolidation is Issue for Arbitrators
By Troutman Pepper Locke on
On June 12, 2007, the Third Circuit affirmed a New Jersey district court’s ruling that arbitrators, and not the court, should determine whether a reinsurance dispute involving numerous asbestos claims should be arbitrated in a single, consolidated proceeding.
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NAIC Plans to Address Collateral Issue by Modernizing Reinsurance Regulation
By Troutman Pepper Locke on
Earlier this week, the Reinsurance Task Force (“RTF”) met at the NAIC’s quarterly conference in San Francisco to discuss ways to overhaul reinsurance regulation in the United States thereby reducing collateral charges for nonadmitted reinsurers.
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SCOR to Arbitrate Reinsurance Dispute with World Trade Center Insurer
It didn’t take long for reinsurance disputes to arise from the recent $2 billion settlement between insurers of the World Trade Center and leaseholders of Silverstein Properties, Inc., that was announced on May 23.
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Read More SCOR to Arbitrate Reinsurance Dispute with World Trade Center Insurer