Tag Archives: 1213 Security

Pre-Answer Security In New York Is No Joke

New York, among several other states, protects its citizen policyholders in disputes with unauthorized foreign or alien insurance companies by requiring the insurance company to deposit security or obtain a licence to do an insurance business in the state before it can file any pleadings in an proceedings brought against it in New York.  This … Continue Reading

Pre-Answer Security and Preclusion Based on Arbitral Decision — Who Decides?

In reinsurance disputes where one party is insolvent or has financial difficulties, the other side often demands security.  Where a non-domiciliary is involved, some states have pre-answer security requirements, which have been held to apply in reinsurance arbitrations.  In a procedurally complicated case, where an arbitration panel issued a security award and then stayed the … Continue Reading