Archives: Contract Interpretation

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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

Confirming a Reinsurance Arbitration Award After Payment Is Made

The Federal Arbitration Act provides that “[i]f the parties in their agreement have agreed that a judgment of the court shall be entered upon the award made pursuant to the arbitration, and shall specify the court, then at any time within one year after the award is made any party to the arbitration may apply to … 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 Added Value of Contract Wording Specialists

As you can tell from many of my blog posts, and certainly from my IRMI.com Commentaries on Reinsurance, negotiating a clear and unambiguous contract wording is a big part of dispute avoidance. Certainly, a significant number of reinsurance disputes result from less than stellar contract drafting. This is true also in commercial insurance. The failure … Continue Reading

Remedies for Arbitration Clause Impossiblities

Reinsurance disputes, particularly collateral disputes over the technicalities of arbitration, are often caused by the words selected in the drafting of the reinsurance contract. Because there is no “right” arbitration clause perfect for every reinsurance agreement, arbitration clauses differ from company to company and from broker to broker. Every company and every broker has their … Continue Reading

The Resurgence of the Defense of Late Notice in Reinsurance Disputes

One of the first things that a reinsurance claims person looks at when receiving a claim notice for the first time is whether the notice from the ceding insurer complies with the notice requirements of the reinsurance contract. In other words, is the reinsurer hearing about this claim for the first time after judgment has … Continue Reading
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