Category: Reinsurance

Seaton Ins. Co. v. Clearwater Ins. Co.

(D. R.I. October 26, 2009)

On October 26, 2009, Seaton Insurance Company and Stonewall Insurance Company filed a complaint in federal court against Clearwater Insurance Company to obtain sums allegedly owed under reinsurance contracts and for a declaration that defendant is required to indemnify the insurers for additional amounts that become due under the contracts.

Plaintiffs issued policies against several companies sued by individuals who claimed to have suffered bodily injury as a result of asbestos …

Utica Insurance Co. v. Fireman's Fund Insurance Co. (Northern District of New York, November 2, 2009)

This action stems from several underlying actions regarding umbrella policies Utica issued between 1966 through 1972.  In order to reduce its risk, Utica purchased reinsurance from the Fireman's Fund among other reinsurers.  Utica's insured filed several asbestos-related claims under its umbrella policies which resulted in Utica paying close to 25 million dollars in settlements.  According to the pleadings, Utica provided the Fireman's Fund with all the expenses and billing information it …

G-I HOLDINGS V. RELIANCE INSURANCE COMPANY ET AL

(CIVIL ACTION NO 07-2510  OCTOBER 26, 2009)

This action involves the plaintiff asserting that Reliance Insurance Co. (“Reliance”) and Hartford Fire Insurance Co. (“Hartford”) are directly liable due to the respective insurance and reinsurance policies executed by the parties.  The plaintiff obtained several director and officers policies from Reliance between 1999 through 2002.  Shortly after the policy was issued, Reliance informed the plaintiff that it was encountering financial difficulties.  As such, in …

EMPLOYERS INSURANCE COMPANY OF WAUSAU V. CERTAIN UNDERWRITERS AT LLOYDS OF LONDON, et al.

(W.D.Wis. September 29, 2009)

A cedent and reinsurer could not agree on an impartial third arbitrator.  The cedent brought a petition in the United States District Court for the Western District of Wisconsin seeking the court to appoint a neutral arbitrator.  The reinsurer cross-petitioned, raising a statute of limitations defense and seeking disqualification of the cedent’s appointed arbitrator.

The court denied the reinsured’s petition.  With regard …

Century Indemnity Co. v. Certain Underwriters at Lloyd’s, London

3d Cir. (Penn), October 15, 2009

This matter involves the appeal of the District Court’s Order granting defendant’s motion to compel arbitration of a disputed claim based on a set of reinsurance agreements.  The Court of Appeals was asked to decide whether the parties had entered into a valid arbitration agreement such that the District Court properly compelled plaintiff to arbitrate its dispute arising from the retrocessional agreements between plaintiff and defendant. 

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Svancara v. Rain and Hail LLC

(D. Neb., September 11, 2009)

Plaintiffs-policyholders purchased separate crop insurance policies from defendant-insurer through an agent.  The policies included identical clauses concerning arbitration.  The policyholders made separate claims under their individual policies for crop damage which the insurer denied.  The policyholders then proceeded to arbitration and the arbitrator returned separate awards in favor of the insurer on each of the policyholders’ claims.  The policyholders then filed suit in the district court claiming that the insurer …

Ario v. Reliance Ins. Co.

( Pa. Commw. Ct. September 4, 2009)

The court granted the summary judgment motions of two hospitals seeking treatment as third-party beneficiaries of reinsurance agreements where: (1) the primary insurer acted only as a fronting company in which capacity it did not accept an underwriting risk; (2) the primary insurer entered the transaction to generate fee income, not premium revenue; (3) the reinsurer acted as the direct insurer by funding and processing claims through its affiliate; (4) the hospitals chose …