News & Analysis as of

Reinsurance Policy Terms

WaterStreet Company

2025 Hurricane Season for Insurance

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As the 2025 hurricane season unfolds, insurance companies prepare. Early summer is time to closely monitor hurricane forecasts, assess risks, and account for financial implications that could arise due to increased property...more

WaterStreet Company

Texas FAIR Plan: Opportunities and Challenges for Private Insurers

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As natural disasters continue to impact the insurance market, Texas has seen a surge in policyholders relying on the Texas FAIR Plan Association for coverage....more

McGinnis Lochridge

Insurance Producer Exposure When Procuring Cover for Sophisticated Clients

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Generally speaking, insurance producers face fairly routine obligations when procuring cover. Every state imposes a general duty to exercise that degree of care, skill and diligence a reasonable producer would exhibit to his...more

Hogan Lovells

Captive audience: Will the UK's new captive insurance regime attract global attention?

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On 14 November 2024, Chancellor of the Exchequer Rachel Reeves announced the launch of a three-month consultation on the regulatory regime for UK-domiciled captives. The consultation seeks a broad range of market feedback on...more

Wiley Rein LLP

Court Denies Reinsurer’s Motion for Judgment on the Pleadings Where Complaint Alleged Retaliatory Conduct During Applicable Policy...

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Applying Washington state law, the United States District Court for the Western District of Washington has denied a reinsurer’s motion for judgment on the pleadings where, although alleged sexual assaults occurred before its...more

Carlton Fields

Alabama Federal Court Holds That Tort of Bad Faith Does Not Extend to Reinsurance Contracts

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In Alabama Municipal Insurance Corp. v. Munich Reinsurance America Inc., the U.S. District Court for the Middle District of Alabama addressed whether, under Alabama law, “reinsurance falls within the limited category of...more

BCLP

English Court Decides COVID-19 is a “Catastrophe”

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The English Court has, for the first time, considered the meaning of a “catastrophe”, as well as how Hours Clauses work in the context of non-damage business interruption losses claimed under two Property Catastrophe Excess...more

Carlton Fields

Reinsurer Permitted to Intervene in Affiliate’s Lawsuit Related to Breach of MGA Agreement

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Texas Insurance Co. sued Talisman Specialty Underwriters Inc. for breaching the parties’ managing general agent (MGA) agreement by authorizing the issuance of hundreds of insurance policies by Texas Insurance in sectors (like...more

Carlton Fields

Second Circuit Affirms Decision That Insurer Is Entitled to Reinsurance Coverage for an Allocated Portion of Settlement

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In Fireman’s Fund Insurance Co. v. OneBeacon Insurance Co., the Second Circuit Court of Appeals affirmed a district court order granting summary judgment to plaintiff Fireman’s Fund, holding that defendant OneBeacon is...more

Carlton Fields

D.C. Circuit Affirms Dismissal of Claims Against Reinsurers

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The D.C. Circuit recently affirmed a judgment in favor of reinsurers in a suit brought by an insured after concluding that the insured could not assert breach of contract and related claims against the reinsurers because the...more

Woodruff Sawyer

Placing D&O Insurance in Russia

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In our work with multinational corporations, we routinely place insurance programs with locally admitted policies around the world, including Russia. However, on March 15, 2022, Vladimir Putin signed a law prohibiting...more

Bradley Arant Boult Cummings LLP

Four New Cyber War Exclusions from Lloyd’s Market Association

The Lloyd’s Market Association (the “LMA”) recently released four model clauses to exclude coverage for “war” from cyber insurance policies. The exclusions align with the requirement that all insurance policies written at...more

Troutman Pepper Locke

10 Things to Consider When Buying, Selling or Operating a Reinsurance Intermediary

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The global reinsurance landscape is an interconnected, intertwined marketplace that continues to grow and evolve. As insurance companies, agencies, program administrators and other industry actors continue to expand their...more

Troutman Pepper Locke

A Fortunes Cookie For The U.S. Reinsurance Industry

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Much of American law is derivative of British law, and this is particularly true in the realm of reinsurance law. In the UK, courts distinguish between ‘follow the fortunes clauses’ and ‘follow the settlements clauses’ and...more

Carlton Fields

SDNY Finds Cedent Entitled to Indemnification for $20 Million Settlement Payment Under English Law

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The question before the Southern District of New York was whether, under English law, certain facultative reinsurance policies obligated a reinsurer to indemnify its cedent for a $20 million settlement. The finding was...more

Troutman Pepper Locke

The Case of the Disappearing Caps on Indemnity and Expenses

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For those old enough to remember, Abbott & Costello had a routine where the famous comedy duo debated the confusing question of “Who’s On First”. The evasive answer appeared to be in the eyes of the beholder....more

Hinshaw & Culbertson - Insights for Insurers

The Latest Decision in the Global Re Case: On Treatment of Expenses under Facultative Reinsurance Certificates

The Bellefonte Cap - The Bellefonte Cap is a shorthand reference to the "reinsurance accepted" limit set forth in a facultative certificate generally capping the reinsurer's obligations with respect to loss and expense...more

Carlton Fields

Nebraska Appellate Court Affirms Dismissal for Lack of Personal Jurisdiction in Suit Involving Breach of Reinsurance Participation...

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The Court of Appeals of Nebraska has affirmed the dismissal of a claim under a reinsurance participation agreement based on lack of personal jurisdiction....more

Zelle  LLP

Climate Change for Insurers: When Politics Fail, Flood the Courts

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This article follows on from a series of previous articles seeking to address climate change litigation in the context of insurance and reinsurance. Three different, but important, decisions in December 2019 have once again...more

Carlton Fields

Eighth Circuit Reinstates Arbitration Award Stemming From Federal Crop Insurance Policy

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The Eighth Circuit reversed a district court decision vacating an arbitration award relating to a federal crop insurance policy issued through a standard reinsurance agreement with the Federal Crop Insurance Corp. (FCIC). The...more

Carlton Fields

Court Dismisses Reinsurance Litigation in Favor of Prior Pending Action

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The plaintiffs, U.S. Fire Insurance Co. and North River Insurance Co., issued 12 umbrella and excess umbrella liability policies for a combined coverage of $244 million to a manufacturer of respiratory protection equipment...more

Carlton Fields

NDNY Unable to Resolve Ambiguity in Umbrella Policies and Sets Trial

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On remand from the Second Circuit, the Northern District of New York was asked to determine whether Utica Mutual Insurance Co. (the cedent) had a defense obligation under its umbrella policies. If it did, then Utica would be...more

Carlton Fields

Court Denies Reinsurer’s Motion to Compel, Finding No Basis to Decide Issues Concerning Costs for Which Cedent Has Not Requested...

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Lamorak Insurance Co. issued excess policies to Olin Corp. and also reinsured those policies with the defendants, Certain Underwriters at Lloyd’s, London. After Lamorak and Olin settled a declaratory judgment action...more

Carlton Fields

SDNY Dismisses Captive Reinsurer’s Counterclaims, Finding Reinsurance Agreement Never Rescinded and Cedent’s Duty to Cede Premiums...

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The Southern District of New York granted a ceding insurer’s motion to dismiss certain counterclaims by a defendant-reinsurer, finding their reinsurance agreement was never rescinded and that the cedent adequately performed....more

Carlton Fields

Northern District Of New York Declines To Imply A Follow-The-Fortunes Or Follow-The-Settlements Obligation In Reinsurance...

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After a ten-day bench trial involving ten fact witnesses and five expert witnesses, the Northern District of New York found that certain facultative certificates did not implicitly contain follow-the-settlements or...more

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