Something new and important is coming to the $200 billion plus run-off market in the U.S. Proposed amendments to Insurance Regulation 68 are pending in the State of Rhode Island (RI) and are expected to be approved later this year. These amendments have the potential to invigorate and transform the market, similar to what has occurred in the UK run-off market over the last … [Read more...] about Insurance Business Transfer: Rhode Island’s Answer to Part VII
Legal
Assaulting the Bellefonte Citadel: Reinsurers Win…Not So Fast
In the 1990 landmark decision of Bellefonte Reinsurance Co. v. Aetna Cas. & Sur. Co., 903 F.2d 910 (2d Cir. 1990), the Second Circuit Court of Appeals held that the reinsurer’s liability was capped at the dollar amount stated in the “Reinsurance Accepted” provision of the applicable facultative certificate. In doing so, the court relied on the portion of the … [Read more...] about Assaulting the Bellefonte Citadel: Reinsurers Win…Not So Fast
AIRROC Dispute Resolution: Adding Simplified Mediation to Your Toolbelt
Test Drive the Future of Runoff: The Vermont Legacy Insurance Management Act of 2014
Companies and investors in the runoff space are generally aware that the State of Vermont’s new Legacy Insurance Management Act (LIMA), signed into law on February 19, 2014, has created a novel runoff business transfer method in a runoff market that has long been in need of growth and innovation, but the Act, its background and its potential applications have only begun to be … [Read more...] about Test Drive the Future of Runoff: The Vermont Legacy Insurance Management Act of 2014
Hydraulic Fracturing: A Retrospective of Key Legal Disputes in 2014 and Predictions for the Future
In 2014, hydraulic fracturing (“fracking”) remained a hot national topic. Often making headlines, fracking also made its mark in litigation where key battles wound their way through the courts. Reviewing just some legal developments confirms the industry faces unique, sometimes prejudicial, challenges despite continued growth. For example, the Eighth Circuit’s decision in … [Read more...] about Hydraulic Fracturing: A Retrospective of Key Legal Disputes in 2014 and Predictions for the Future
Is the Duty of Utmost Good Faith in Runoff?
For centuries the venerable duty of utmost good faith has served as a bedrock principle of the reinsurance industry: a standard that has set reinsurance contractual relationships apart from other commercial transactions governed by “caveat emptor.” However, a number of commentators in the industry have questioned whether the duty of utmost good faith has been in … [Read more...] about Is the Duty of Utmost Good Faith in Runoff?
Walking the High Wire: The Discoverability of Insurer/Reinsurer Communications in Insurance Coverage Litigation
In insurance coverage litigation, cedants and reinsurers have a common financial interest in the investigation and adjustment of complex, high-dollar or questionable claims. In the real world, a joint financial interest is the firmest of foundations for expectations of confidentiality. Cedants have a duty to keep reinsurers informed, and reinsurers may decide to join in the … [Read more...] about Walking the High Wire: The Discoverability of Insurer/Reinsurer Communications in Insurance Coverage Litigation
