Category: Reinsurance

Century Indemnity Company v. Certain Underwriters at Lloyd’s, London, et al. (S.D.N.Y. May 22, 2011)

Petitioner commenced an action to confirm an arbitration award against respondents.  Respondents cross-petitioned, but did not argue that the award should not be confirmed.  Instead, respondents set forth their account of the arbitration and urged that the award should be confirmed.  Petitioners requested that the court strike the cross-petition, arguing that respondents were merely trying to use the action as a public relations device to present their side of the …

Pacific Employers Ins. Co. v. Global Reins. Corp. of Am. (E.D. Pa. May 23, 2011)

In a matter of first impression in Pennsylvania, a federal court in Pennsylvania held that a reinsurer must demonstrate prejudice in order to avoid its coverage obligation based on the cedant’s failure to comply with the reinsurance certificate’s notice provisions. In so holding, the court noted that Pennsylvania law does not favor forfeiture of coverage for a technical breach of the insurance contract, a maxim that also applies in the …

Royal Palm Ins. Co. v. Guy Carpenter & Co. Inc.  (2^nd Cir., May 27, 2011)

This reinsurance litigation arose from the alleged breach of Broker Services Agreement (“BSA”) executed by the parties.  Defendant-appellant, Guy Carpenter, appealed from the district court's judgment in favor of plaintiff-appellee Royal Palm Insurance Company ("Royal Palm") in the amount of $4,243,581. Specifically, in April 2006, Royal Palm started its insurance business in Florida, and engaged Guy Carpenter to act as its broker pursuant to a "Reinsurance Intermediary Authorization" (the …

Executive Risk Indemnity, Inc. v. Charleston Area Medical Center, Inc. (S.D. W.Va. May 12, 2011)

Defendant revoked a doctor’s clinical privileges when it determined that the doctor’s proposed plan for self-funding his medical professional liability was inadequate and not actuarially sound.  The doctor filed a lawsuit seeking the injunctive relief of reinstatement of his clinical privileges in addition to punitive damages.  The state court ordered that the doctor’s clinical privileges be restored and the claim for damages proceeded.  The doctor moved to amend the complaint …

Employers Ins. Co. of Wausau v. Munich Reins. Am., Inc. (S.D.N.Y. May 16, 2011)

The district court for the Southern District of New York recently held that the issue of whether a law firm should be disqualified from representing a reinsured where the same law firm represented the reinsurer in a prior matter is one for the judiciary, not the arbitrators. The court found that the law firm was not disqualified from representing the reinsured in a subsequent arbitration because the two matters where not …

Munich Reinsurance America, Inc. v. National Casualty Co., 10 Civ. 5782 (SHS) (April 26, 2011)

Munich Reinsurance America, Inc. (“Munich Re”) and National Casualty Corporation (“National”) were involved in a dispute over payments due under a multiparty reinsurance treaty. Both agreed that the treaty required the dispute to be decided in arbitration. Munich Re contended the dispute could be resolved by a two-party arbitration that should commence immediately. National contended the arbitration could not go forward without the active participation of a third party, …

Pacific Employers Ins. Co. v. AXA Belgium S.A. (E.D. Pa. April 27, 2011)

In 1978, plaintiff and defendant entered into a reinsurance agreement.  Pursuant to the agreement, defendant was obligated to reimburse plaintiff for 5% of a portion of loss and/or loss expense payments made with respect to insurance policies written on plaintiff’s behalf.  At the time the agreement was negotiated and entered into, plaintiff was (and still is) a California domiciled insurance company with its principal place of business in California.  Defendant was (and …