Archives: Reinsurance Contracts

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The Top 10 InReDisputesBlog Posts for 2019

Below are the top 10 blog posts from our Insurance & Reinsurance Disputes Blog for 2019.  These are the ones our readers viewed the most last year on our blog. The compilation is diverse as is the topic of insurance and reinsurance disputes.  Please enjoy this stroll down memory lane.  If you like these and … Continue Reading

Policyholder’s Attempt to Third-Party Reinsurers Denied

When a policyholder faces litigation from its insurance company over a claim submitted by the policyholder, the policyholder often will defend by alleging that the insurance company has breached the insurance contract and has wrongfully failed to pay the claim.  Sometimes, however, a policyholder will try to blame the insurance company’s refusal to pay a … Continue Reading

Life Reinsurer Gets Its Wish to Intervene

Life insurance policies issued in the past are often transferred in blocks to reinsurers on a 100% indemnity reinsurance basis.  These transfers often include servicing agreements, where the assuming reinsurer takes responsibility for all policy services, including determining the cost-of-insurance.  In the past several years, policyholders have brought putative class actions against life insurance companies … Continue Reading

Who Decides Consolidation Issue? A New Arbitration Panel or the Old One?

It is pretty well settled under modern arbitration law, including reinsurance arbitrations, that procedural issues like consolidation are questions for the arbitrators and not the courts.  But what happens if there are multiple arbitration panels?  Which panel decides the consolidation application?  And what if one arbitration has been completed and a motion to consolidate is … Continue Reading

Liquidator Compelled to Arbitrate Hurricane Reinsurance Disputes

The federal policy favoring arbitration sometimes bumps up against state-based receivers where the receiver would rather the receivership court address reinsurance disputes than have the matter arbitrated.  In the aftermath of Hurricanes Irma and Maria, which devastated Puerto Rico, reinsurance disputes arose over a cedent’s allocation between the hurricanes and other aspects of the many … Continue Reading

Post-Trial Motions Denied in Hard-Fought Reinsurance Dispute

Reinsurance disputes are rarely tried to a jury.  They are typically arbitrated.  When they are tried to a jury–just like any jury trial–there are often post-trial motions made to seek to overturn the jury verdict or modify the judgment.  Motions like that are difficult to win, especially when key facts are left to the jury to … Continue Reading

December 2019 Reinsurance Newsletter

In our December 2019 Reinsurance Newsletter we discuss non-signatories being bound by arbitration clauses, a case involving who decides arbitrability questions, a functus officio case, a remand to an arbitration panel to clarify an arbitration award, and an update on TRIA.  A number of other case developments are digested as well.  Please enjoy.  Feedback is always welcomed.… Continue Reading

Unique Arbitration Clause Does Not Prevent Granting of Motion to Compel Arbitration

Whether a motion to compel arbitration will be granted depends on, among other things, whether the arbitration provision is broad or narrow and whether the dispute falls within the scope of the arbitration provision.  In a recent case, a California federal court construed unique language in an arbitration provision in a reinsurance agreement, granted the … Continue Reading

Reinsurance and the Death Master File

In a traditional life insurance and reinsurance relationship, a life insurance company issues a policy to a policyholder and reinsures the policy (usually via a block of business consisting of the same or similar policies) with its reinsurer either by coinsurance or on a yearly renewable term basis (or otherwise).  When the insured person dies, … Continue Reading

Non-Party Notice of Appeal in Reinsurance Dispute Results in an Award of Attorney Fees

When you are not a party to a legal proceeding, but nevertheless file a notice of appeal purportedly on behalf of a party after a settlement, the likelihood of a positive outcome is very low.  Such was the case recently before a New York federal court.  The result:  an award of attorney fees.… Continue Reading

September 2019 Reinsurance Newsletter

The September 2019 Reinsurance Newsletter is now available for your reading pleasure.  You may access it on the Squire Patton Boggs website or here.  In this issue, we discuss a decision concerning the preclusive effect of an interim security award, a captive reinsurance dispute and an update on EU Third Country Equivalence.  Please enjoy.  Comments … 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

How Does the Latest US Supreme Court Ruling on Class Arbitration Affect Reinsurance Arbitration?

The US Supreme Court’s pronouncements on class arbitration have little to do with reinsurance arbitrations.  But, when the Supreme Court speaks on arbitrations and construes the Federal Arbitration Act (“FAA”), there may be statements or even holdings by the court that could affect aspects of reinsurance arbitrations, so we pay attention.  In the most recent … Continue Reading

How Courts Select Umpires Where The Reinsurance Contract Gives Courts the Power

Some reinsurance contracts have a provision in the arbitration clause that allow the parties to ask a court to appoint the umpire if the parties cannot agree on the selection of one.  A court’s analysis of the candidates and whether they are qualified or should be disqualified from consideration as an umpire is always interesting … Continue Reading

The Consolidation Circus Continues

In December 2018, we blogged about a new reinsurance arbitration consolidation case.  We mentioned that the reinsurer filed several other petitions to compel arbitration in various jurisdictions all seeking to allow for consolidation of these disputes in three arbitrations  based on the different reinsurance programs.  The facts are the same so read the December 2018 post … Continue Reading

Private Interest Outweighs Public Interest In Sealing of Arbitration Documents

In the past several years, motions to seal arbitration documents generally have been denied in favor of the public’s right to have access to documents filed in court.  We discussed this in a prior blog post in the context of arbitration awards.  But not every court will deny a motion to seal arising from a reinsurance … Continue Reading

March 2019 Reinsurance Newsletter

Our March 2019 Reinsurance Newsletter is available for your reading pleasure.  It covers reinsurance developments since December 2018 and also includes regulatory and policy updates as well as our annual Brief Review of Reinsurance Trends.  Please enjoy.  You can access the Newsletter here.… Continue Reading

Some Thoughts on Proving an Insurance Contract in Court

Insurance companies often have their backs against the wall in any dispute.  Typically, in a coverage or premium action brought by the insurance company, it bears the burden of proving its insurance contract and any exclusionary endorsements.  In inter-company disputes that may be a bit easier and the rules may be a bit looser (e.g., … Continue Reading

LPTs and Existing Reinsurance Relationships

Insurers have been using loss portfolio transfers (“LPTs”) for decades for a host of reasons.  An LPT is a great way to move a legacy book of business off the balance sheet.  What is often forgotten is the interplay between the LPT and existing reinsurance contracts.  This is especially so when the LPT is more retrocessional … Continue Reading

New Case on Consolidation in Reinsurance Arbitrations

It’s pretty clear in most jurisdictions that the question of whether disputes under multiple reinsurance contracts should be consolidated is a question for the arbitrators and not the court.  What’s less clear is how the parties get an arbitration panel in place to address the consolidation issue. A California federal court recently addressed this issue.… Continue Reading

December 2018 Reinsurance Newsletter

In this edition of the Squire Patton Boggs Reinsurance Newsletter we cover two Second Circuit cases; one on functus officio and the other on a post-Global v. Century decision.  Other cases include state court cases on manifest disregard and functus officio and on whether an arbitration provision was enforceable.  Comments are welcomed.  Please click here to … 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

September 2018 Reinsurance Newsletter

The Squire Patton Boggs September 2018 Reinsurance Newsletter is now available here.  This quarter’s newsletter discusses the recent Second Circuit case on evident partiality, a case on equitable subrogation and reinsurance damages arising out of the 9/11 terrorist attacks and a trial court’s decision to allow evidence of follow-the-settlements on the question of whether the … Continue Reading
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