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Insurance Litigation Reinsurance Reinsurance Agreements

Wiley Rein LLP

Court Denies Reinsurer’s Motion for Judgment on the Pleadings Where Complaint Alleged Retaliatory Conduct During Applicable Policy...

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Applying Washington state law, the United States District Court for the Western District of Washington has denied a reinsurer’s motion for judgment on the pleadings where, although alleged sexual assaults occurred before its...more

Carlton Fields

Pennsylvania Federal Court Finds Forum Selection Clause in Services Agreement Between Insurer and Reinsurance Broker to Be Valid...

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In Housing & Redevelopment Insurance Exchange v. Guy Carpenter & Co., a Pennsylvania federal court considered the enforceability of a forum selection clause in a services agreement between Pennsylvania-based insurer Housing...more

Hinshaw & Culbertson - Insights for Insurers

The Bell Tolls For the "Bellefonte Cap"

In 2016, Best's Review published our article titled "The Bellefonte Cap Returns." As we explained, the Cap stemmed from the decision of the U.S. Court of Appeals for the Second Circuit in 1990 in Bellefonte Reinsurance Co. v....more

Carlton Fields

Eastern District of California Grants Partial Summary Judgment to Plaintiffs in Reinsurance Mortgage Kickback Class Action;...

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The Eastern District of California recently granted partial summary judgment to a class of plaintiffs suing a reinsurer and related entities with respect to a reinsurance arrangement regarding private mortgage insurance that...more

Locke Lord LLP

What’s Behind the Green Door?

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We don’t expect many of you to remember a 1950’s song (as most weren’t yet born!), What’s Behind the Green Door.* The vocalist, Jim Lowe, was certainly not thinking about insurance when he sang it, but in the insurance world...more

Carlton Fields

SDNY Finds Cedent Entitled to Indemnification for $20 Million Settlement Payment Under English Law

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The question before the Southern District of New York was whether, under English law, certain facultative reinsurance policies obligated a reinsurer to indemnify its cedent for a $20 million settlement. The finding was...more

BCLP

Must reinsurers follow their cedants’ COVID-19 related claim settlements?

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A key question being asked in the markets is whether reinsurers are obliged to follow their cedants’ Covid-19 related settlements? Covid-19 continues to dominate the headlines and the lives of people around the world....more

Hinshaw & Culbertson - Insights for Insurers

The Latest Decision in the Global Re Case: On Treatment of Expenses under Facultative Reinsurance Certificates

The Bellefonte Cap - The Bellefonte Cap is a shorthand reference to the "reinsurance accepted" limit set forth in a facultative certificate generally capping the reinsurer's obligations with respect to loss and expense...more

White and Williams LLP

Unringing the Bellefonte Rule

On March 2, 2020, the U.S. District Court for the Southern District of New York issued its long-anticipated ruling in the Global v. Century case. More than five years after applying the Bellefonte Rule to hold that a...more

Carlton Fields

Nebraska Appellate Court Affirms Dismissal for Lack of Personal Jurisdiction in Suit Involving Breach of Reinsurance Participation...

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The Court of Appeals of Nebraska has affirmed the dismissal of a claim under a reinsurance participation agreement based on lack of personal jurisdiction....more

Carlton Fields

Trial Court Denies Post-Trial Motions in Asbestos Reinsurance Saga Involving Claims That Reinsurer Failed to “Follow the Fortunes”...

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We previously posted about the yearslong reinsurance dispute between Utica Mutual Insurance Co. (the cedent) and Century Indemnity Co. (the reinsurer), involving Utica’s claims that Century breached two reinsurance...more

Carlton Fields

Eighth Circuit Reinstates Arbitration Award Stemming From Federal Crop Insurance Policy

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The Eighth Circuit reversed a district court decision vacating an arbitration award relating to a federal crop insurance policy issued through a standard reinsurance agreement with the Federal Crop Insurance Corp. (FCIC). The...more

Carlton Fields

Court Holds Former Director in Contempt Following Wild Reinsurance Dispute

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Recovering returns from reinsurance commissions can be a costly and time-consuming endeavor, at least when a former director of the agency that received the provisional commissions allegedly engages in a slew of activity to...more

Carlton Fields

Federal Court Dismisses Policyholder’s Third-Party Action Against Reinsurers

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A Puerto Rico district court dismissed a third-party action by defendant-policyholder Puma Energy Caribe LLC against the reinsurers of an insurance policy issued by plaintiff Integrand Assurance Co. Puma claimed that the...more

Carlton Fields

Third Circuit Affirms Order Declining to Consolidate Reinsurance Dispute, but Vacates Order Denying Motion to Unseal

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Everest Reinsurance Co. appealed from two district court orders. It claimed that this dispute with Pennsylvania National Mutual Casualty Insurance Co. was the same as a prior dispute that Penn National had arbitrated with two...more

Carlton Fields

SDNY Dismisses Captive Reinsurer’s Counterclaims, Finding Reinsurance Agreement Never Rescinded and Cedent’s Duty to Cede Premiums...

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The Southern District of New York granted a ceding insurer’s motion to dismiss certain counterclaims by a defendant-reinsurer, finding their reinsurance agreement was never rescinded and that the cedent adequately performed....more

Mintz - Arbitration, Mediation, ADR...

Consolidation of Arbitrations is a Procedural Matter Presumptively For the Arbitrator to Decide in Accordance With the Parties’...

Since arbitration is a process of dispute resolution in accordance with a private agreement, the question of consolidation of arbitral proceedings ought to be determined in the same manner as other procedural issues. In...more

Carlton Fields

Promissory Note Issued In Satisfaction of Unpaid Insurance Premiums Is Valid And Enforceable, Even If Allegedly Derived From...

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Plaintiff sells workers’ compensation insurance through its “EquityComp” program approved by New Jersey law. Defendant purchased an EquityComp policy....more

Carlton Fields

Nebraska Federal Court Applies First-To-File Rule To Reinsurance Breach Of Contract Disputes, Transfers Case To Connecticut

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The District of Nebraska recently ruled in favor of Charter Oak Oil Co. (“Charter Oak”)’s attempt to dismiss a breach of contract case by Applied Underwriters Captive Risk Assurance Co. (“AUCRA”) based on the first-to-file...more

Carlton Fields

Reinsurer Prevails In Dismissing Breach Of Contract, Bad Faith Claims Asserted By Underlying Policyholder

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A federal district court in Pennsylvania recently dismissed all claims asserted by an insured against a reinsurer in a coverage dispute over an explosion at plaintiff Three Rivers Hydroponics (“Three Rivers”)’s commercial...more

Carlton Fields

Insurance Receiver’s Preemption Argument Under Mccarran-Ferguson Fails To Avoid Arbitration Of Reinsurance Dispute

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The receiver for Gramercy Insurance Company sought to avoid arbitration of a reinsurance dispute with Contractor’s Bonding, Ltd., by arguing the FAA was reverse preempted under the McCarran-Ferguson Act....more

Carlton Fields

California Court Considers Enforceability Of Arbitration Clause In Reinsurance Related Agreement Applying Nebraska Law

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In a case involving a reinsurance participation agreement (RPA), a California trial court has examined the interplay between two seemingly irreconcilable contract provisions: one that provided for the arbitration of any...more

Carlton Fields

New York’s High Court Scales Back Reinsurance Liability Cap

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In Excess Insurance Co. Ltd. v Factory Mutual Insurance Co., 3 NY3d 577 (N.Y. 2004), New York’s high court held that, under a facultative reinsurance agreement, the reinsurer’s liability was limited to a per occurrence cap,...more

Carlton Fields

Court Upholds Prior Ruling That Unfiled Rates Charged Under Reinsurance Agreement Were Not Void

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On July 21, 2016, we reported on a putative class action filed in a California U.S. district court by Shasta Linen Company against Applied Underwriters, Inc. and its affiliate entities, alleging that the “EquityComp” workers’...more

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