Archives: Reinsurance

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Liquidator’s Motion to Dismiss Petition to Confirm Reinsurance Arbitration Award Denied

In some states receivers may bring claims inside or outside the receivership court, including reinsurance arbitrations. In other states receivership proceedings end the ability of either party to bring a reinsurance arbitration outside of the liquidation court.  In a recent case, a receiver of an insolvent cedent commenced a reinsurance arbitration outside of the receivership … 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

Enforcement of Arbitration Subpoenas and Summonses

Sometimes it is necessary to obtain evidence from non-parties during a reinsurance arbitration.  Yet, the Federal Arbitration Act (“FAA”) does not expressly sanction non-party (or for that matter any) pre-hearing discovery.  In practice, however, most parties ask the arbitration panel to issue a subpoena to a “hearing” and then negotiate with the non-party about producing … Continue Reading

When Arbitrators Exceed Their Powers

When an arbitration panel issues a final award any challenge to that award faces an uphill battle.  That is because under the Federal Arbitration Act (“FAA”) a final arbitration award must be confirmed (if requested) and can only be vacated for a very narrow set of reasons.  Of the four grounds for vacatur under Section … 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

Arbitration Awards and Confidentiality Revisited

In reinsurance arbitrations, most parties agree to confidentiality and enter into a formal confidentiality order.  The confidentiality order typically applies to the final award as well as all materials generated in the arbitration.  Some insurance and reinsurance agreements have confidentiality provisions that lead to the same result.  The ARIAS-U.S. Rules for U.S. Insurance & Reinsurance … Continue Reading

As the Commercial Market Expands Government Terrorism Mechanisms Pull Back

In response to the terrorist attacks of the 2000s, a number of governments established insurance-like mechanisms to address the catastrophic effects of a terrorist attack.  One of the early state-backed facilities is the UK’s Pool Reinsurance Company, Ltd. (“Pool Re”), which was actually set up in the 1990s to address events sparked by the unrest … 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

Second Circuit Affirms Exception to Functus Officio Rule in Arbitration

In 2017, we discussed a reinsurance case where the district court articulated an exception to the functus officio rule that allows for clarification of an arbitral award.  The Second Circuit has now affirmed that decision and joins the Third, Fifth, Sixth, Seventh and Ninth Circuits in allowing this exception.… 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

Vacating an Arbitration Award for Evident Partiality Just Got Harder

Vacating an arbitration award has always been tough.  The Federal Arbitration Act only has limited bases to seek vacatur.  One of those bases is when there is “evident partiality” by the arbitrator. 9 U.S.C. § 10(a)(2).  In “traditional” reinsurance arbitrations, the arbitration panel includes two party-appointed arbitrators, each of whom may be predisposed toward the position of … Continue Reading

June 2018 Reinsurance Newsletter

The Squire Patton Boggs June 2018 Reinsurance Newsletter is out.  You can access it here.  This quarter’s newsletter covers the Second Circuit’s remand of Global v. Century, an interesting Massachusetts case involving self-insured workers’ compensation programs and follow-on reinsurance, and a McCarran-Ferguson reverse preemption case.  Please enjoy.… Continue Reading

Interplay Between Reinsurance and Self-Insured Workers’ Compensation

There is a somewhat complicated statutory scheme in many states concerning an employer’s ability to self-insure its workers’ compensation obligations. Reinsurance often plays a role where an employer self-insures. Typically, that role is to provide “reinsurance” in excess of a self-insured retention to protect the employer’s top end.  If an employer fails to insure or … Continue Reading

English Court of Appeal Rules on “Experience of Insurance and Reinsurance” Arbitrator Qualifications Includes Legal Experience

In Allianz Insurance PLC (formerly Cornhill Insurance PLC) v. Tonicastar Ltd,  [2018] EWCA Civ 434, the Court of Appeal held that the arbitral qualification of experience of insurance and reinsurance means experience as a lawyer working for the industry and does not mean only those who have worked for the industry qualify.… Continue Reading

March 2018 Reinsurance Newsletter

Our March 2018 Reinsurance Newsletter is now available for your reading pleasure.  This issue covers the Global v. Century decision by the New York Court of Appeals answering the Second Circuit’s certified question as well as our annual review of reinsurance trends in 2017, as well as cases involving reinsurance for the September 11th terrorist attacks … Continue Reading

Direct Claims Against Reinsurer Fail to Succeed

Direct actions against reinsurers have been on the rise for some time.  To bring a direct action, a policyholder must get over the contractual privity hurdle and find some basis to show a direct relationship or third-party beneficiary relationship.  Many policyholders try to bring these actions, but they more often than not fail at the … 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

Flood Reinsurance Triggered — So What Happens Next?

In an effort to stabilize the National Flood Insurance Program (“NFIP”), Congress passed several bills that allowed the NFIP to access the private reinsurance market. First piloted in 2016, in 2017 the program resulted in a broker-placed $1.042 billion cover with 25 private reinsurance markets.  The 2017 catastrophe excess-of-loss program provides coverage of 26% of … Continue Reading
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