Court compels arbitration finding issue of arbitrability was delegated to the arbitrators as well as sorting out procedural differences between the arbitration provisions.https://www.inredisputesblog.com/2020/06/arbitration-prevails-in-coverage-dispute/ … [Read more...] about Arbitration Prevails in Coverage Dispute
Second Circuit holds that the “follow-the-settlements” doctrine does not bind a reinsurer to settlement decisions that are inconsistent with the plain, unambiguous terms of the reinsured … [Read more...] about Second Circuit Says Cedent Cannot Use the “Follow-the-Settlements” Doctrine to Circumvent Plain, Unambiguous Policy Provision
Federal District Court in Massachusetts holds that the preclusive effect of a prior arbitration award is itself an arbitrable issue. Read full article here - https://www.inredisputesblog.com/2020/03/arbitrators-to-decide-if-reinsurance-rebilling-after-final-arbitration-award-is-precluded/ … [Read more...] about Arbitrators to Decide If Reinsurance Rebilling After Final Arbitration Award Is Precluded
Court rules that the Final Award is the Final Award and rejects reinsurer’s argument that the arbitration panel was functus officio after it issued the Interim Final Award. Read full article here - https://www.inredisputesblog.com/2020/04/final-award-confirmed-over-interim-final-award-in-reinsurance-dispute/ … [Read more...] about Final Award Confirmed Over Interim Final Award in Reinsurance Dispute
Complex corporate structures and internal reinsurance relationships can complicate legacy reinsurance relationships. Larry Schiffer summarizes a recent SDNY case that dealt with one such complication in compelling arbitration. Read full article here - … [Read more...] about Who Demands Arbitration Is Key to Whether Arbitration Will be Compelled
Genes or the environment? Advances in genomics science provide a new legal framework for a genetic defense to toxic tort claims. Legacy (re)insurers holding or acquiring toxic tort liabilities may be relying too heavily on outdated legal strategies to defend their policyholders. In our view, millions (perhaps billions) of dollars might be saved if reinsurers … [Read more...] about The Revolution in Analysis of Cancer Causation and Genomics Liability
Locke Lord highlights recent decision on ability of arbitration panel to retain jurisdiction to resolve any dispute arising out of an arbitration award. Continue reading here - https://www.jdsupra.com/legalnews/it-s-not-over-until-the-panel-sings-41283/ … [Read more...] about It’s Not Over … Until The Panel Sings
Corporate Partner Mound Cotton tackle the topic of how the automatization of underwriting may affect the relationship between reinsured and reinsurer, including the classic reinsurance doctrines of utmost good faith and follow the fortunes.New technology and artificial intelligence are leading to major changes in the traditional underwriting process. This article … [Read more...] about Automatization of Underwriting and the Future of the Reinsurance Relationship
Larry Schiffer of Squire Patton Boggs blogs about noteworthy decision on discovery of reinsurance information in lawsuit against National Football League. There are lots of cases discussing the production of reinsurance contracts and reinsurance communications in insurance coverage disputes. Generally, the answer depends on the specific facts of the case. … [Read more...] about Is Reinsurance Information Relevant In an Insurance Coverage Case?
Ask two reinsurance experts to define the parameters and limitations of Follow the Fortunes (“FTF”) and you will, undoubtedly, receive two different responses. Provide these experts with a fact pattern and ask whether FTF applies, and you are still likely to receive inconsistent answers. It hardly matters whether the experts have more experience on the ceded or … [Read more...] about The Edges of Follow the Fortunes
In June 2016, the Financial Accounting Standards Board (FASB) approved a new accounting standard, the Current Expected Credit Loss (CECL) model, to replace the former incurred loss model for measuring credit risk on financial instruments. This change will accelerate the financial reporting of credit losses on loans and other financial instruments, including reinsurance … [Read more...] about Preparing for CECL: A Ceded Reinsurance Perspective
In the wake of the recent release of another investigating grand jury report regarding abuse of minors by clerics, Pennsylvania state lawmakers have introduced a proposal to revive previously time-barred civil claims arising out of allegations of childhood sexual abuse. If passed, the new law would open a two-year “window” during which victims could file such claims without … [Read more...] about Allegations of Clergy Misconduct
Some thoughtsMost readers are familiar, at least to some extent, with the jury’s verdict earlier this year in Lanzo v. Johnson & Johnson. In that case, a New Jersey state court jury awarded $117 million in compensatory and punitive damages against J&J and Imerys after concluding that asbestos-contaminated talc, supplied by Imerys and used to make Johnson’s Baby … [Read more...] about Avoiding the Next Lanzo: Some Thoughts
A good few eyes are focused on the daily, if not hourly, developing news on the UK’s departure from the European Union. What does it mean for the London Market and in turn for those who deal with its many participants both in the EU and throughout the rest of the world?The run-up to Brexit might have resonances of Y2K and the millennium bug but it is distinctly different. Y2K … [Read more...] about Brexit: Whats going on?
Recently, while on a family vacation, I drove past the Yellowstone Imerys talc-mining operations in Montana near Yellowstone National Park. The operation is set against a beautiful backdrop in one of the most naturally stunning areas of the country. The tranquil setting stands in stark contrast to the company’s current turmoil as a defendant in one of the highest profile mass … [Read more...] about Lanzo v. Johnson & Johnson, et al. Is this the Beginning or the End?
New legislation is loosening the tight regulatory knot that’s been wrapped around legacy insurance business in the U.S. Upcoming game-changers include:Key amendments to the Rhode Island Voluntary Restructuring Statute (the ‘Rhode Island Statute’), which, among other amendments (House Bill 8163), would allow (re)insurers to transfer eligible portfolios without requiring … [Read more...] about Legacy Watershed: Capitalizing on the New Legislative Options for Runoff
Joanne McGovern (Claims Regional Vice-President for ProSight Specialty Insurance), joined Laura Besvinick and Julie Nevins (both of Stroock & Stroock & Lavan) to discuss the dynamics of claims handling in Florida, the hallmarks of good faith claims-handling, and avoiding bad faith claims. Bad faith claims have become something of a “cottage industry” in Florida. Certain … [Read more...] about Florida Bad Faith Claims: Best Practices In Claims Handling
The panel consisted of Bruce Engel, Partner at Freeborn & Peters LLP, moderated the panel consisting of Amy Kallal, Partner at Mound Cotton Wollan & Greengrass LLP, and Robin Dusek, Partner at Freeborn & Peters. Amy Kallal addressed the Viking Pump decision, stating that “it turns out” that New York is not really a pro rata state, but that “sometimes” it is. In … [Read more...] about A New Allocation Landscape Under In re Viking Pump, Inc.
What does that mean?If rumors are to be believed (and there is no reason to think that they should not be), the long running dispute of United States Fidelity & Guaranty Co. v. American ReInsurance Co. (“USF&G v. Am Re”) settled with trial looming.As many will remember, in February 2013, the New York Court of Appeals (the state’s highest court) issued an important … [Read more...] about USF&G v. American Re Settles
Recently Rhode Island revised its Voluntary Restructuring of Solvent Insurers Act as implemented by DBR Regulation 68. This is, in many respects, modeled after the UK’s Part VII Transaction, which, subject to court approval, enables companies to transfer/novate a book of business (and divest itself of all residual liability), to another unrelated insurer that assumes all … [Read more...] about Rhode Island Regulation 68: Voluntary Restructuring of Solvent Insurers Act