On September 15, 2020, the UK’s High Court issued its highly-anticipated ruling on the “test case” for COVID-19 business interruption insurance coverage. The case was brought by the UK Financial Conduct Authority (FCA) on behalf of several policyholders – many small and medium sized enterprises (SMEs) – to determine how the Court would rule on several different policy wordings … [Read more...] about UK High Court Rules on Business Interruption Insurance Test Case
The New York Attorney General and the New York State Department of Financial Services are leaders in the efforts to fill in the regulatory gap in the wake of perceived reduction in federal enforcement.Read the full article here... … [Read more...] about Expect Increased New York State Regulatory Enforcement in the Banking and Financial Services Industry
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
Corporate Partner Dentons highlights the legal issues in assessing coverage for vandalism, looting, and related business interruption and civil authority claims.Legal InformationTo say we are living in unprecedented times in the insurance and reinsurance world, and everywhere else, would be a gross understatement. While we continue to work from home, insurers … [Read more...] about Social Unrest: Covered or Not?
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
California federal court addressing an issue of the first impression holds that tort liability for breach of the implied covenant of good faith and fair dealing was not a valid cause of action under California law in a reinsurance dispute.A typical reinsurance dispute is essentially a breach of a contract dispute. A reinsurance agreement is a contract between two insurance … [Read more...] about No Tort Liability in Reinsurance Contract Dispute Under California Law
Court compels arbitration finding issue of arbitrability was delegated to the arbitrators as well as sorting out procedural differences between the arbitration provisions.https://www.inredisputesblog.com/2020/06/arbitration-prevails-in-coverage-dispute/ … [Read more...] about Arbitration Prevails in Coverage Dispute
Second Circuit holds that the “follow-the-settlements” doctrine does not bind a reinsurer to settlement decisions that are inconsistent with the plain, unambiguous terms of the reinsured … [Read more...] about Second Circuit Says Cedent Cannot Use the “Follow-the-Settlements” Doctrine to Circumvent Plain, Unambiguous Policy Provision
Federal District Court in Massachusetts holds that the preclusive effect of a prior arbitration award is itself an arbitrable issue. Read full article here - https://www.inredisputesblog.com/2020/03/arbitrators-to-decide-if-reinsurance-rebilling-after-final-arbitration-award-is-precluded/ … [Read more...] about Arbitrators to Decide If Reinsurance Rebilling After Final Arbitration Award Is Precluded
Court rules that the Final Award is the Final Award and rejects reinsurer’s argument that the arbitration panel was functus officio after it issued the Interim Final Award. Read full article here - https://www.inredisputesblog.com/2020/04/final-award-confirmed-over-interim-final-award-in-reinsurance-dispute/ … [Read more...] about Final Award Confirmed Over Interim Final Award in Reinsurance Dispute
Complex corporate structures and internal reinsurance relationships can complicate legacy reinsurance relationships. Larry Schiffer summarizes a recent SDNY case that dealt with one such complication in compelling arbitration. Read full article here - … [Read more...] about Who Demands Arbitration Is Key to Whether Arbitration Will be Compelled
Genes or the environment? Advances in genomics science provide a new legal framework for a genetic defense to toxic tort claims. Legacy (re)insurers holding or acquiring toxic tort liabilities may be relying too heavily on outdated legal strategies to defend their policyholders. In our view, millions (perhaps billions) of dollars might be saved if reinsurers … [Read more...] about The Revolution in Analysis of Cancer Causation and Genomics Liability
Locke Lord highlights recent decision on ability of arbitration panel to retain jurisdiction to resolve any dispute arising out of an arbitration award. Continue reading here - https://www.jdsupra.com/legalnews/it-s-not-over-until-the-panel-sings-41283/ … [Read more...] about It’s Not Over … Until The Panel Sings
Corporate Partner Mound Cotton tackle the topic of how the automatization of underwriting may affect the relationship between reinsured and reinsurer, including the classic reinsurance doctrines of utmost good faith and follow the fortunes.New technology and artificial intelligence are leading to major changes in the traditional underwriting process. This article … [Read more...] about Automatization of Underwriting and the Future of the Reinsurance Relationship
Larry Schiffer of Squire Patton Boggs blogs about noteworthy decision on discovery of reinsurance information in lawsuit against National Football League. There are lots of cases discussing the production of reinsurance contracts and reinsurance communications in insurance coverage disputes. Generally, the answer depends on the specific facts of the case. … [Read more...] about Is Reinsurance Information Relevant In an Insurance Coverage Case?
Ask two reinsurance experts to define the parameters and limitations of Follow the Fortunes (“FTF”) and you will, undoubtedly, receive two different responses. Provide these experts with a fact pattern and ask whether FTF applies, and you are still likely to receive inconsistent answers. It hardly matters whether the experts have more experience on the ceded or … [Read more...] about The Edges of Follow the Fortunes
In June 2016, the Financial Accounting Standards Board (FASB) approved a new accounting standard, the Current Expected Credit Loss (CECL) model, to replace the former incurred loss model for measuring credit risk on financial instruments. This change will accelerate the financial reporting of credit losses on loans and other financial instruments, including reinsurance … [Read more...] about Preparing for CECL: A Ceded Reinsurance Perspective
In the wake of the recent release of another investigating grand jury report regarding abuse of minors by clerics, Pennsylvania state lawmakers have introduced a proposal to revive previously time-barred civil claims arising out of allegations of childhood sexual abuse. If passed, the new law would open a two-year “window” during which victims could file such claims without … [Read more...] about Allegations of Clergy Misconduct
Some thoughtsMost readers are familiar, at least to some extent, with the jury’s verdict earlier this year in Lanzo v. Johnson & Johnson. In that case, a New Jersey state court jury awarded $117 million in compensatory and punitive damages against J&J and Imerys after concluding that asbestos-contaminated talc, supplied by Imerys and used to make Johnson’s Baby … [Read more...] about Avoiding the Next Lanzo: Some Thoughts
A good few eyes are focused on the daily, if not hourly, developing news on the UK’s departure from the European Union. What does it mean for the London Market and in turn for those who deal with its many participants both in the EU and throughout the rest of the world?The run-up to Brexit might have resonances of Y2K and the millennium bug but it is distinctly different. Y2K … [Read more...] about Brexit: Whats going on?