Holding An Illinois appellate court held that genuine issues of material fact existed as to the existence of reinsurance policies, based on the cedent’s secondary evidence. The court also held that the reinsurer was not entitled to summary judgment on its late notice defense. Pohjola Ins. Ltd. v. Cont’l Ins. Co., 2026 IL App (1st) 242294-U. Background In 2004, … [Read more...] about Illinois Appellate Court Reverses Trial Court’s Summary Judgment Ruling For Reinsurer, Finding Genuine Issues Of Material Fact On Reinsurance Existence And Late Notice Of Loss
Legal
Reinsurance Contract Drafting 101—Plain English
Like many commercial contracts, some reinsurance contracts are filled with archaic terms, industry jargon, and, most unfortunately, legalese. And it doesn't have to be that way. All contracts, including reinsurance contracts, should be written in plain English. It's time to abandon templates that are overly wordy and obtuse. It's time to "say what you mean, and mean what you … [Read more...] about Reinsurance Contract Drafting 101—Plain English
Umpire Checklist: A Practical Guide for Commencing the Arbitration
The following is a “laundry list” that includes as many opening data points as I have gathered through discussion with many arbitrators and in my own arbitrations. Not all of these items will be necessary in every case, and I invite anyone who would like to add something to this list to contact me at connie@cdomaraconsulting.com. I. Kickoff Call with Panel Where is … [Read more...] about Umpire Checklist: A Practical Guide for Commencing the Arbitration
A Brief Review of Reinsurance Trends in 2025
In 2025, the courts issued some significant arbitration decisions in non-reinsurance cases that have potential applicability to reinsurance disputes. Additionally, decisions were handed down concerning the defense of late notice, the use of collateral estoppel direct actions against reinsurers, disclosure of reinsurance information and funding of collateral. Read More... … [Read more...] about A Brief Review of Reinsurance Trends in 2025
Unlocking capital: Liability transfer solutions for captive insurance companies
Introduction: Capital opportunities for captive insurers with legacy liabilities Many (re)insurance companies carry legacy liabilities on their balance sheets that no longer align with their current strategic goals. This practice is equally relevant to captive insurance companies. Such legacy liabilities, whether in run-off portfolios, discontinued lines of business, or aged … [Read more...] about Unlocking capital: Liability transfer solutions for captive insurance companies
Arbitration in the Courts
Chapter 2 of the Federal Arbitration Act (FAA) incorporates the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention), and grants federal courts subject-matter jurisdiction over actions “falling under” the Convention. 9 U.S.C. § 203. In Molecular Dynamics, the Second Circuit held that this jurisdictional grant does not extend to … [Read more...] about Arbitration in the Courts
Special Termination Provisions in Reinsurance Contracts
Most reinsurance contracts contain a "special termination" clause. The clause typically allows either party to terminate the contract early if certain contingencies arise. Unsurprisingly, there are myriad versions of the special termination clause ranging from versions that only allow the ceding insurer to terminate to mutual clauses that allow either party to terminate. The … [Read more...] about Special Termination Provisions in Reinsurance Contracts
Using the Organizational Meeting to Build a Better Arbitration
Arbitration clauses in most insurance and reinsurance contracts are remarkable for how little they say about the process. The most basic form of arbitration clause states only that, if a dispute arises, the parties will arbitrate rather than litigate. Exactly what “arbitration” means usually remains undefined. A typical clause may add a few barebones terms regarding the … [Read more...] about Using the Organizational Meeting to Build a Better Arbitration
Enstar’s Cavello Bay sues Aspen for more than $400 million over alleged breach of reinsurance deal
Enstar subsidiary Cavello Bay Reinsurance Limited is seeking damages of more than $400 million against Aspen Insurance Holdings in a U.S. lawsuit over an alleged breach of a reinsurance agreement. Cavello Bay alleges in the lawsuit, which it filed in the Connecticut Superior Court in the judicial district of New Britain, that Aspen breached multiple provisions of an amended … [Read more...] about Enstar’s Cavello Bay sues Aspen for more than $400 million over alleged breach of reinsurance deal
Discovery of Reinsurance Information Rolls On
Policyholders and claimants seeking to access reinsurance contracts and other reinsurance information and communications to support their claims continues to take up plenty of judicial time. Courts are split on the issues, but the issues are all fact-dependent. In this post, I discuss two cases from this year where both courts granted motions seeking to disclose reinsurance … [Read more...] about Discovery of Reinsurance Information Rolls On
Municipal Liability Cases
Coincidentally, this year’s AIRROC summer meeting was held in New York City. Brian McElhenny and Jeffrey Migdalen, from the Gerber Ciano law firm, treated participants to a presentation highlighting the frequent litigation against New York State municipalities for various torts. These include motor vehicle accidents involving municipal vehicles or emergency vehicles, motor … [Read more...] about Municipal Liability Cases
Navigating Time Limit Demands: Best Practices for Insurers in the Age of Social Inflation
Presented by Daisy Khambatta and John LaBarbera, Partners, Kennedys In today's legal landscape, insurers face unprecedented challenges with time limit demands, driven by the rising tide of social inflation. As verdicts escalate, with some reaching astronomical figures like the $1.2 billion Texas case, insurers must develop robust strategies to respond to policy limit … [Read more...] about Navigating Time Limit Demands: Best Practices for Insurers in the Age of Social Inflation
Arbitration in the Courts
Supreme Court holds that FSIA § 1330 provides exclusive statutory test for personal jurisdiction over foreign states in arbitration award enforcement action: Courts need not conduct additional “minimum contacts” analysis when FSIA arbitration exception applies and service is proper. CC/Devas (Mauritius) Ltd. et al. v. Antrix Corp. Ltd. et al., 605 U.S. (2025). The … [Read more...] about Arbitration in the Courts
Fifth Circuit Definitively Rejects Manifest Disregard As a Ground for Vacatur of an Arbitration Award
The grounds for vacating an arbitration award under the Federal Arbitration Act (“FAA”) are limited. For decades, however, parties have raised manifest disregard of the law as a ground for vacatur. Many courts have limited or rejected manifest disregard as a basis to vacate an arbitration award. In a recent decision, the Fifth Circuit Court of Appeals in a non-reinsurance case … [Read more...] about Fifth Circuit Definitively Rejects Manifest Disregard As a Ground for Vacatur of an Arbitration Award
New York insurance law adds parametric insurance as covered insurance
Insurers who issue policies covering catastrophic weather-related events should take note of New York Assembly Bill 10344. As of January 12, 2025, insurers have the ability to incorporate parametric insurance into their insurance products as a regulated area of insurance law. New York’s legislation is the most recent example of how states are recognizing parametric insurance … [Read more...] about New York insurance law adds parametric insurance as covered insurance
Social Media and Insurance Coverage: A TikTok-ing Clock
This presentation explores the evolving intersection of social media and insurance coverage, emphasizing the rapidly growing risks and claims stemming from platforms like TikTok. Legal, regulatory, and market-based concerns are brought to light, especially as technologies such as AI integrate into social platforms. Peter Calleo and Troy Shuman of Enstar, Grace Seigel of Guy … [Read more...] about Social Media and Insurance Coverage: A TikTok-ing Clock
Bankruptcies and the Runoff Market – Impacts and Implications
Shelly DeRousse and Kathleen Ehrhart, both Partners at Smith Gambrell Russell, along with Geoffrey Goodman a Partner at Foley & Lardner led the discussion on bankruptcy and the runoff market at the 2025 Spring Membership Meeting. The session focused on the increasing number of mass-tort bankruptcies and the involvement of insurance and reinsurance companies, with an … [Read more...] about Bankruptcies and the Runoff Market – Impacts and Implications
Arbitration in the Courts
New York appellate court holds that prior arbitration award precluded claim by party’s affiliate under doctrine of res judicata: Non-party to arbitration was precluded from bringing breach of contract claim when the same issue was or could have been adjudicated by a related party in a prior arbitration. The doctrine of res judicata or claim preclusion prevents parties from … [Read more...] about Arbitration in the Courts
Additions to the DRP: The Neutral Panel Process
For years, arbitrators have discussed the benefits of neutral panels. Simply put, the concept is not new. A “few” years ago [enough said about the passage of time], Caleb Fowler, Bob Hall and Larry Monin outlined these benefits and offered themselves as a “pre-set” panel, as stated in their article, All-Neutral Arbitration Panels, XV Mealey's Reins. Rpt. No. 24 at 23 (April 28, … [Read more...] about Additions to the DRP: The Neutral Panel Process
A Brief Review of Reinsurance Trends in 2024
In 2024, the United States Supreme Court answered the question of whether a case should be stayed or dismissed if arbitration is compelled. Courts also continued to enforce arbitration rights and compel arbitration and addressed discovery of reinsurance information issues, questions of sealing of reinsurance information, jurisdiction, and a rare late notice … [Read more...] about A Brief Review of Reinsurance Trends in 2024
