On April 19, 2022, the New York Department of Financial Services (“NY DFS”) issued Insurance Circular Letter No. 5 (2022) (the “Letter”). The Letter, entitled “Acquisitions of Control and Disclaimers of Control”, was addressed to all New York domiciled insurers and other interested parties. The purpose of the Letter is to remind insurance industry participants of the … [Read more...] about NY DFS Issues Circular Letter Addressing Acquisitions and Disclaimers of Control
Reinsurance
The End of Collateral for Non-US Reinsurers Is Here; An UPDATE on “Reciprocal Reinsurers”
As we previously reported a year ago, the National Association of Insurance Commissioners (NAIC) adopted amendments to the Credit for Reinsurance Model Law (#785) and Credit for Reinsurance Model Regulation (#786) to implement the certain international agreements to eliminate collateral requirements for qualifying reinsurers. The Models created a new category of reinsurers, … [Read more...] about The End of Collateral for Non-US Reinsurers Is Here; An UPDATE on “Reciprocal Reinsurers”
Meet Randi Ellias: Notable Woman in Reinsurance
When Randi joined the Butler Rubin law firm in Chicago over 25 years ago, she was fresh out of law school and eager to get to work. She had served as a summer clerk at the firm and enjoyed the people and the firm culture. Her journey began in the area of reinsurance arbitration and litigation, and often she was the sole woman in the room. In fact, during her first reinsurance … [Read more...] about Meet Randi Ellias: Notable Woman in Reinsurance
Buying English Law When You Place London Market Reinsurance?
Cedents based in the United States should be aware that they may be buying (or, indeed, have already bought years ago) English law to govern interpretation of their reinsurance contracts placed in the London market. In a US court presiding over a lawsuit involving reinsurance placed in London, English law can apply despite the American forum. In any given case, whether the … [Read more...] about Buying English Law When You Place London Market Reinsurance?
The Second Circuit Decision in Utica Mutual v. Munich Re: Some Clarity on Three Fronts
On July 29, 2021, the United States Court of Appeals for the Second Circuit issued its ruling on the appeal of Utica Mutual Insurance Company (“Utica”) from the decision of the United States District Court for the Northern District of New York in the dispute between Utica and Munich Reinsurance America, Inc. (“MRAm”). The court affirmed the decision of the court below that MRAm … [Read more...] about The Second Circuit Decision in Utica Mutual v. Munich Re: Some Clarity on Three Fronts
The Scope of an Arbitration Panel’s Authority
Raymond Mastrangelo, a Partner with Mound Cotton Wollan Greengrass LLP, moderated a panel discussion with three of the insurance and reinsurance arbitration community’s most experienced and respected arbitrators: Susan Claflin, Claflin Consulting Services LLC, Ann Field, Senior Managing Director of Client Services, Aon, and Howard Page, HR Page Consulting LLP. The panel topic … [Read more...] about The Scope of an Arbitration Panel’s Authority
A Look at the Legal Landscape
The education sessions of the 2021 Summer Membership Meeting began with “A Look at the Legal Landscape” of COVID-19 Business Interruption (“BI”) claims, presented by John O’Bryan, Partner, Freeborn & Peters, Michael Merlo, Executive Vice President and Chief Counsel, Aon, and Kay E. Wilde, Director of Reinsurance Assumed Claims, Allstate Insurance Company. The panel treated … [Read more...] about A Look at the Legal Landscape
Disputes Over Arbitrator Qualifications: The Northern District of California Offers Some Guidance
The selection of an arbitration panel can often lead to disputes between the parties regarding things like whether a particular candidate is qualified, whether a challenge to an arbitrator’s qualifications can be addressed pre-award and whether a party that names an unqualified arbitrator should lose the opportunity to name a replacement. In Public Risk Innovations v. Amtrust … [Read more...] about Disputes Over Arbitrator Qualifications: The Northern District of California Offers Some Guidance
Reinsurance Arbitration Awards – An Uphill Battle?
A long-running dispute between Pennsylvania National Mutual Casualty Insurance Company and one of its reinsurers, Everest Reinsurance Company, recently culminated in the unsealing of an award from an arbitration to which Everest had not been a party. Everest was able to obtain this result despite the fact that Penn National had withdrawn its petition to confirm the award (and … [Read more...] about Reinsurance Arbitration Awards – An Uphill Battle?
Reinsurance Agreements and Initial Disclosures
A recent decision by a North Carolina federal court adds to a list of cases requiring insurance company defendants in coverage actions to produce reinsurance agreements as part of their initial disclosures under Federal Rule of Civil Procedure 26. Although the list may be growing, many of these decisions adopt an overly simplistic, one-size-fits-all approach that fails to … [Read more...] about Reinsurance Agreements and Initial Disclosures
California Supreme Court clarifies the special relationship
On April 1, 2021, the California Supreme Court entered an opinion in Brown v. USA Taekwondo, which involves sexual abuse-related claims against USA Taekwondo (“USAT”) and the United States Olympic Committee (“USOC”). Lowers Courts’ Decisions From 2007 to 2013, then-minors Yazmin Brown, Kendra Gatt and Brianna Bordon (collectively, “Plaintiffs”) were sexually abused by their … [Read more...] about California Supreme Court clarifies the special relationship
Strike and Rank – An Alternative to the Strike and Flip Umpire Selection Process
Umpire selection is one of the most important aspects of a reinsurance (or any other) arbitration because it can have a significant impact on the outcome of your case. Traditionally, parties have utilized the “strike and flip” method of umpire selection where the parties nominate a specified number of candidates, strike all but one of the other side’s candidates and then select … [Read more...] about Strike and Rank – An Alternative to the Strike and Flip Umpire Selection Process
The latest challenge to Ohio’s allocation law
Nearly two decades ago, the Supreme Court of Ohio adopted an “all sums” approach to allocate insurance coverage for progressive injuries among multiple triggered policies. In Goodyear Tire & Rubber Co. v. Aetna Cas. & Sur. Co., the Court held that “when a continuous occurrence of environmental pollution triggers claims under multiple primary insurance policies, the … [Read more...] about The latest challenge to Ohio’s allocation law
Mind On His Money and His Money On His Mind: New York District Court Judge Affirms Arbitral Award Arising Out of Dispute Over Royalties Owed to Rapper Snoop Dogg
Perhaps Snoop Dogg should stick to gin n’ juice, as the rapper’s foray into promoting cognac and brandy products caused him to become the subject of a decade-long arbitral dispute, which was finally resolved last month. On January 25, 2021, a New York district court judge affirmed a nearly $2 million arbitration award against French cognac distiller Cognac Ferrand SAS … [Read more...] about Mind On His Money and His Money On His Mind: New York District Court Judge Affirms Arbitral Award Arising Out of Dispute Over Royalties Owed to Rapper Snoop Dogg
What the New Proposed Credit for Reinsurance Regulations Mean for Reinsurance Disputes
Photo by Pixabay on Pexels.com You remember the Covered Agreements entered into between the US and the UK and the US and the EU to deal with Brexit and Solvency II and international financial standards, right? Well, the New York Department of Financial Services has noticed a proposed regulation implementing the new credit for reinsurance rules required under the Covered … [Read more...] about What the New Proposed Credit for Reinsurance Regulations Mean for Reinsurance Disputes
Inflection Point: COVID-19 and resulting balance sheet pressures spur hunt for lasting legacy solutions
With mounting novel coronavirus (COVID-19) liabilities straining insurers’ and reinsurers’ balance sheets, the pressing need to free the capital tied up in legacy portfolios can no longer be ignored. Sorting out legacy risk would not only relieve reserve pressure, but also release much needed capital to support growth. So, what are the options for tackling the legacy … [Read more...] about Inflection Point: COVID-19 and resulting balance sheet pressures spur hunt for lasting legacy solutions
Non-Concurrency Between Ceding Companies and Their Reinsurers for Communicable Disease Exclusions: The Next COVID-19 Shoe to Drop
As COVID-19 continues to change our everyday way of life, its impact on the insurance/reinsurance industry also continues to develop. The reinsurance renewal process that many insurance companies recently went through exposes yet another impending issue the insurance industry will need to confront – non-concurrency between the coverage afforded by newly issued insurance … [Read more...] about Non-Concurrency Between Ceding Companies and Their Reinsurers for Communicable Disease Exclusions: The Next COVID-19 Shoe to Drop
To the Cedent, Summary Judgment
A New York federal court grants summary judgment to a cedent for breach of contract where reinsurer failed to provide the required collateral. Legal News Many reinsurance arrangements require the posting of collateral. The failure to post collateral is often grounds for a breach of contract claim. In a recent decision, a New York federal court granted summary judgment to the … [Read more...] about To the Cedent, Summary Judgment
When It Rains Pollution, Grab Your Umbrella
New York federal court holds that Hawaii’s “all sums” rule and “follow-the-settlement” provisions in reinsurance contracts obligated a reinsurer to reimburse a cedent where the underlying reinsured umbrella contract had a three-year term and the underlying insured settled an environmental claim for contamination spanning more than 44 … [Read more...] about When It Rains Pollution, Grab Your Umbrella
The Current Impact of Legacy Losses
Milliman provides an overview of legacy exposures that can impact the general liability books of commercial insurance companies. https://www.milliman.com/en/insight/The-current-impact-of-legacy-losses … [Read more...] about The Current Impact of Legacy Losses