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The Novel Coronavirus and Reinsurance

I have updated my musings on insurance losses arising from the novel coronavirus and the issues that may arise should those losses become cessions to reinsurance contracts in my latest IRMI.com quarterly Reinsurance Commentary.  I hope you find it useful and would welcome comments and feedback.  You can access the Reinsurance Commentary by clicking the … Continue Reading

It Is All Relative When Determining Which Insurer Covers a Subsequent Lawsuit

Successive lawsuits with similar facts often give rise to fights between insurers over which insurance policy must defend the lawsuit.  Why?  Because many insurance policies have provisions that define losses to include those that relate to an earlier claim.  This may mean that if a claim was brought two years ago and noticed to that … Continue Reading

COVID-19 Losses from a Reinsurer’s Perspective

This blog post provides some thoughts on addressing COVID-19 losses from the reinsurer’s perspective.  A reinsurer does not issue the underlying policies and does not handle the underlying claims.  A reinsurer relies upon its reinsured to adjust claims within the terms and conditions of the reinsured policies and the reinsurance contract.  Just like the ceding … Continue Reading

COVID-19 Losses From a Reinsured’s Perspective

This blog post provides some thoughts on addressing COVID-19 losses from the perspective of the reinsurance buyer: the reinsured or cedent.  A cedent has two main considerations when faced with a loss:  (1) is the loss a covered loss under the cedent’s insurance policies? and, (2) if the loss is a covered loss, is it … Continue Reading

Second Circuit Reverses Judgment for Cedent and Finds Reinsurer Not Liable for Asbestos Losses

In a significant reversal of a judgment for a cedent after a jury verdict, the Second Circuit Court of Appeals has held in favor of the reinsurer in an important follow-the-settlements case.  The court agreed with the reinsurer that, as a matter of law, it was not obligated to the cedent because the losses did … Continue Reading

Without the Bellefonte Presumption, Reinsurer Denied Partial Summary Judgment

You remember Bellefonte, right?  Bellefonte Reinsurance. Co. v. The Aetna Casualty & Surety Co., 903 F.2d 910 (1990).  When the New York Court of Appeals in Global Reinsurance Corp. of Am. v. Century Indemn. Co., 30, N.Y.3d 508 (2017), took the wind out of reliance on Bellefonte as authority for the stated limits in a facultative … Continue Reading

Coverage for Government Investigations and Warranty of No Known Claims

Obtaining insurance coverage for a government investigation is often complicated by the type of investigation and the available coverage.  Most policies that cover aspects of government investigations–directors and officers liability policies or errors and omissions policies–are written on a claims-made form and exclude claims that relate back to prior or pending claims.  Very often the … Continue Reading

Ramifications of Global Re v. Century Indemnity Evident in Second Circuit

In late 2017, the New York Court of Appeals, in Global Reinsurance Corp. of Am. v. Century Indemn. Co., 30 N.Y.3d 508 (2017), provided guidance to the Second Circuit Court of Appeals on how New York law interprets reinsurance contracts and, in particular, the stated limits in facultative certificates and whether those stated limits are … Continue Reading

The Bell Tolled — New York Court of Appeals Rules No Presumption on Facultative Liability Cap

An interesting trend has emerged from the New York Court of Appeals.  In several recent cases, parties have asked the court to declare that a bright line rule of construction or presumption arises in every case where an insurance or reinsurance contract has certain language.  The high court has rejected this call for a bright line … Continue Reading

Failure to Comply With Protective Safeguards Endorsement Results in Loss of Coverage

A Protective Safeguards Endorsement (“PSE”), as defined by my friends at IRMI, is “[a] property insurance endorsement that makes it a condition of coverage that the protective safeguards cited in the endorsement (such as an automatic sprinkler system or night watch guard) be in operation at all times except when the insurer has been notified of … Continue Reading

New York Court of Appeals Reaffirms Contract Language Controls Allocation and Exhaustion Methodologies

Long-tail claims from asbestos and other toxic exposures have plagued policyholders and their insurers for decades. Myriad issues arise when trying to determine when injuries are incurred, how policies are triggered, how liability should be allocated among multiple policies and when excess policies are required to cover the losses. None of this is easy and … Continue Reading
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