Archives: Facultative Certificate

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Proving a Reinsurance Contractual Relationship Exists

Litigating a reinsurance contract dispute is not much different than litigating any commercial contract dispute. The party seeking recovery under the contract has to prove that the contract exists. Proving the policy can be a big issue with claims asserted under old policies and reinsurance contracts. This certainly has been an issue with asbestos and other … Continue Reading

March 2017 Reinsurance Newsletter

This quarter’s Squire Patton Boggs Reinsurance Newsletter focuses on the certified question sent to the New York Court of Appeals by the Second Circuit on Bellefonte. It also features regulatory updates on the US-EU Covered Agreement as it affects reinsurance and on the new duty to pay insurance and reinsurance claims in the UK. Finally, … Continue Reading

The Assault on Bellefonte Accelerates

In a highly anticipated decision, the United States Court of Appeals for the Second Circuit has certified an important question of reinsurance law to the New York Court of Appeals. The appeal had amicus briefs from reinsurance intermediaries supporting the cedent’s argument that the so-called “Bellefonte” rule should not apply. We discussed this in an … Continue Reading

Frontal Assault on Bellefonte at Second Circuit

Those of you who dabble in reinsurance disputes are familiar with Bellefonte Reins. Co. v. Aetna Cas. & Sur. Co., 930 F.2d 910 (2d Cir. 1990) and its progeny. Many trees have been sacrificed explaining and arguing for and against the “rule” set in Bellefonte and its affect on claims expenses and limits in facultative certificates … Continue Reading

Resolving Competing Arbitration Clauses

A typical reinsurance contract has one arbitration clause. But sometimes, the contract is endorsed and a second and different arbitration clause may appear. Which controls? That was the question faced recently in a Hurricane Sandy reinsurance dispute when a facultative certificate of reinsurance had an arbitration clause in its body at Section U, but had … Continue Reading

The Battle Over Whether Reinsurance Limits in a Facultative Certificate Caps All Liability Rages On

Beginning in 1990 with the Second Circuit Court of Appeals’ controversial Bellefonte decision, a battle has raged on between parties to facultative certificates over whether a certificate’s reinsurance limit of liability is a cap on both reinsurance liability and expenses. For the most part, that battle has favored the reinsurers, with courts finding no ambiguity in the certificate’s … Continue Reading
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