. . . Consequently, subject to therequirements of good faith and a reasonable, businesslikeinvestigation, the ceding company may bind the reinsurer to follow its settlements when it concedes that a particular claim falls within the scope of coverage provided by the ceding company's policy.1...
Reinsurance contracts are filled with exotic and equally mind-numbing terms like facultative certificate, follow-the-fortunes, cede, treaty, honorable engagement, ultimate net loss, and more. Some of our previous articles have addressed a few of these terms, such as "Understanding Reinsurance Terminol...
The excess carrier sought discovery of the reinsurance coverage purchased by the fund to demonstrate that the reinsurance policy triggered the “other insurance” clause and that the fund’s exposure over its retention was not self-insurance but was “insurance” because of the reinsurance policy. I...
(N.Y. 2013): In a case where reinsurers challenged the allocation of a $1 billion settlement of asbestos related liabilities, we obtained a 5-0 victory in the New York Court of Appeals in a landmark decision on the “follow the fortunes” doctrine. Because most reinsurance agreements are...