Payments Made in Settlement of Bodily Injury Lawsuit Against Insured Within Primary Insurer's Policy

RESPA Class Action Alleging Illegal Kickback Scheme Involving Reinsurer Dismissed

Insurer's Suit Against Investment Manager Relating to "Toxic" Mortgage-Backed Securities Reinstated

Insurer, as Subrogee, Sues Insured's Contractor for Property Damage Caused
During Construction at Insured's Property

Former Teacher Sues Insurer and Claim Administrator for Failing to Pay Disability Benefits

Lexis.com subscribers may access the enhanced versions of the cases above. Non-subscribers may access the free, unenhanced versions on

Foley & Lardner: Between Mediation and Arbitration — Binding Mediation: The Third Alternative

FoleyandLardner@placeholder.com (Foley & Lardner LLP) — Tue, 30 Aug 2011 13:50:00 -0400

By Robert C. (Bob) Leventhal

CaseWatch: Insurance – Decisions from The Insurance and Reinsurance Report – May 23, 2011

gerberdelaney@doublephoto.com (Daniel W. Gerber and Sarah J. Delaney) — Tue, 07 Jun 2011 17:39:00 -0400

Lexis.com subscribers may access the enhanced versions of the cases above. Non-subscribers may access the free, unenhanced versions on lexisONE, if available

CaseWatch: Insurance - Decisions from The Insurance and Reinsurance Report - March 2011

gerberdelaney@doublephoto.com (Daniel W. Gerber and Sarah J. Delaney) — Mon, 02 May 2011 14:03:00 -0400

Lexis.com subscribers may access the enhanced versions of the cases above. Non-subscribers may access the free, unenhanced versions on lexisONE, if available.

Actions and Proceedings

Kartman v. State Farm Mutual Automobile Insurance Company
634 F.3d 883 [Lexis.com /LexisONE] (7^th Cir. Ind. February 14, 2011)

Goldberg Segalla’s Reinsurance Review – February, 2011

gerbersegallakingsley@placeholder.com (Gerber, Segalla, Kingsley, Omilian) — Wed, 30 Mar 2011 13:36:00 -0400

IN THIS MONTH'S EDITION:

Circuit Court Reverses District Court and Determines that there is No Right to Injunction to Stop Arbitration Because No Showing of Irreparable Injury

District Court Dismisses Case against British American Sua Sponte For Lack of Subject Matter Jurisdiction

LONDON — An English justice recently found for a pair of reinsurers and held that a reinsurance contract only covers underlying policies after those policies have been exhausted (Teal Assurance Company Limited v. W R. Berkley Insurance (Europe) Limited, No. 2010 FOLIO 1045, England and Wales High, QBD, Comm.; [2011

How Dodd-Frank Undermines Reinsurance and Endangers American Policyholders

karl.rubinstein@gmail.com (Karl Rubinstein) — Mon, 07 Feb 2011 22:38:00 -0400

By Karl L. Rubinstein

As I discussed in my article of September 28, 2010¹, Title V of the new Dodd-Frank Bill foreshadows a federal takeover of insurance regulation. When effective next year, it will not only subordinate state insurance laws to international treaties relating to “prudential matters,” it will undermine the efficacy of reinsurance and thereby

Goldgerg Segalla’s Reinsurance Review – January, 2011

gerbersegallakingsley@placeholder.com (Gerber, Segalla, Kingsley, Omilian) — Fri, 21 Jan 2011 20:00:00 -0400

IN THIS MONTH'S EDITION:

Court Concludes that Arbitration Clause is Broad Enough to Cover Dispute

District Court Concludes that Insurer Has Right To Intervene In Suit by Policyholder To Obtain Proceeds Of Judgment From Reinsurer

Lexis.com subscribers may access the enhanced versions of the cases above. Non-subscribers may access the free, unenhanced versions on lexisONE, if available.

Lexis.com subscribers may access the enhanced versions of the cases below. Non-subscribers may access the free, unenhanced versions on lexisONE, if available.

Actions and Proceedings

Bayle v. Allstate Insurance Co.

2010 U.S. App. LEXIS 16635 [lexis.com / lexisONE]

Top Case of the Week: Second Circuit Affirms Dismissal of Complaint Against Reinsurer

dgerber@goldbergsegalla.com (Dan Gerber) — Thu, 21 Oct 2010 10:15:00 -0400

Arrowood Surplus Lines Ins. Co. v. Westport Ins. Corp., (2d Cir. (Conn.) October 8, 2010)

Plaintiff’s predecessor, Royal Surplus Lines Insurance Company (“Royal Surplus”) entered into an agreement pursuant to which it assumed the liabilities and acquired the related assets of Connecticut Specialty Insurance’s Company (“Connecticut Specialty”) covered business as of December 31, 2001. From February 1, 1999 until May 16, 2000, Employers Reinsurance Company (“Employers Reinsurance”) reinsured a class of policies Connecticut Specialty issued, including one to Equity Residential (“Equity”) that went into effect on December 15, 1999 (“Equity Policy”).

Peter Chaffetz: The Financial Crisis’ Impact on Reinsurance

HBL@litigationconferences.com (HB Litigation Conferences) — Mon, 27 Sep 2010 11:25:00 -0400

Peter Chaffetz of Chaffetz Linsdey LLP was on the faculty of the Reinsurance Outlook 2010 seminar produced earlier this year by HB Litigation Conferences. During a session that focused on the reinsurance implications of the global financial crisis, Chaffetz provided a nuts and bolts review of how historical changes in lending practices helped fuel the global economic slide. For more information on this and other programs visit www.LitigationConferences.comReka Koerner, SVP, Legal, Swiss Reinsurance America Corp. and Carey Child, partner, Chadborne & Parke spoke earlier this year at HB’s Reinsurance Outlook 2010. In this clip they discuss recommendations for stress-testing reinsurance contract wording as a way to guard against potential unexpected extreme losses. In their presentation they referred to these losses as “black swans,” borrowed from

Europe's Insurers Enter New Phase in Solvency II Process

RobertOConnor@placeholder.com (Robert O’Connor) — Fri, 14 May 2010 15:53:00 -0400

LONDON (BestWire) - From now until October, insurance companies operating in the European Union will be working on the next stage of their preparations for Solvency II, which is aimed at introducing a uniform regulatory structure for insurance and reinsurance in October 2012.

"That pre-application process really is designed to help both the insurers and the regulators understand what is required in order to go for the formal application process," said Gerard L'Aimable, a senior consultant with Towers Watson in London.

Consultants, along with the U.K. Financial Services Authority, have been advising companies on their preparations for Solvency II. Insurance companies will be expected to construct internal models and create plans and analyses of their operations. While directives are nothing new in the EU, L'Aimable said Solvency II involves "quite unprecedented" levels of detail and breadth.

Individual company plans will be delivered to

South Korea's Reinsurance Market Experiencing Softening Cycle

iris.lai@ambest.com (Iris Lai) — Wed, 12 May 2010 01:54:00 -0400

SEOUL, South Korea (BestWire) - South Korea's reinsurance market is experiencing a softening cycle with an overall reduction in reinsurance rates in April's renewal round.

With the absence of large natural catastrophes in South Korea since 2004, the market has had a low level of insurance losses. With primary insurers continuing to increase their retention levels, "there is heightened competition over rates" among reinsurers, said C.S. Park, managing director of Korean Reinsurance Co. [085225].

This year's Haiti and Chile earthquakes, Windstorm Xynthia in Europe, hailstorms in Perth and Sydney, Australia, and various other earthquakes are expected to bring record-high natural catastrophe losses worldwide, but Park said it is too early to tell the actual impact because loss assessments for these events have just started.

In South Korea, Park said the possibility of rate increases caused by these catastrophic events has been "somewhat"

Compliance and Claims Issues for Foreign (Re)insurers Arising from the Chile Earthquake

mmillett@eapdlaw.com (M. Machua Millett) — Thu, 15 Apr 2010 11:53:00 -0400

By M. Machua Millett

On April 12, 2010, Machua Millett of EAPD's Insurance and Reinsurance Department provided a brief webcast concerning compliance and claims issues arising from the Chile Earthquake. To view the Chile Earthquake Insurers webcast, please click here. To view the Chile Earthquake Insurers PowerPoint for the webcast, please click here.

If you would be interested in learning more about the Chilean claims process or regulatory scheme and/or further discussing

Reinsurer’s Right to Access Ceding Insurer’s Records

Raim.Langford@placeholder.com (David Raim & Joy Langford) — Thu, 01 Oct 2009 16:36:00 -0400

Section 40.10 of the New Appleman Insurance Law Practice Guide considers the reinsurer’s right to access the ceding insurer’s records. Most reinsurance contracts include a provision (some broader in scope than other) granting the reinsurer the right to inspect or audit the cedent’s books and records. This allows the reinsurer to see what business the cedent is underwriting, how it is handling claims and whether the claims are covered by the reinsurance agreement. Access to documents enables the reinsurer to determine whether the cedent acted reasonably and in good faith in handling underlying claims and in

Goldberg Segalla’s Reinsurance Review – August, 2009

gerbersegallakingsley@placeholder.com (Gerber, Segalla, Kingsley, Omilian) — Wed, 12 Aug 2009 13:42:00 -0400

Goldberg Segalla’s Reinsurance Review provides timely summaries of and access to the latest reinsurance law developments worldwide, and is published monthly. Cases are organized by court and date. In addition, it provides the latest information regarding news in the insurance and reinsurance industries. Reinsurance Review is the collaborative effort of Goldberg Segalla LLP’s Global Insurance Services Practice Group, as is its blog The Insurance and Reinsurance Report. Goldberg Segalla’s Global Insurance Service Group is comprised of over 25 attorneys throughout 10 offices in the firm’s four states (New York, New Jersey, Connecticut, and Pennsylvania). The Global Insurance Services Group routinely handles

Court Confirms Reinsurance Arbitration Award, Rejecting Numerous Procedural Challenges

rcg@jordenusa.com (Roland C. Goss) — Tue, 03 Feb 2009 00:25:00 -0400

When a dispute arose over the allocation and payment of losses under a reinsurance agreement pursuant to which Global International Reinsurance Company agreed to reinsure TIG Insurance Company, the parties took their dispute to arbitration. An arbitrator granted TIG’s motion for partial summary judgment, finding that Global had released its right to audit and dispute certain claims. The dispute arose out of transactions and claims which had been the subject of a prior arbitration and settlement agreement. The parties disagreed as to their current claim audit rights and payment obligations under the reinsurance agreement and the prior settlement agreement. The arbitrator granted partial summary judgment based upon an interpretation of the various agreements and the prior arbitration award, after four hours of oral argument but no evidentiary hearing.

Global sought the vacation of the award, contending that it had been denied a fundamentally fair hearing because the arbitrator

Reinsurance Pool Representative Says It’s Not Proper Party In Suit

andrew.mccue@lexisnexis.com (Andrew McCue) — Wed, 09 Jul 2008 12:50:00 -0400

An organization representing members of a workers’ compensation reinsurance pool recently moved to dismiss fraud and accounting counterclaims made directly against it, noting that it is not a proper party but that it had merely filed the original suit on behalf of the members of the pool

In an eight-count complaint alleging two RICO counts and six supplemental state law claims the organization says the insurers fraudulently schemed to avoid paying their proportional share of the insurance costs in the residual market for workers’ compensation insurance.

The insurers filed counterclaims, charging the same or similar practices to understate the workers’ compensation premiums.

The organization then moved to dismiss the counterclaims, holding that the counterclaims were "designed to misuse the concept of an accounting action and bury [the] case in improper and fruitless discovery for years."

This case, National

Reinsured is Not Entitled to Tort Damages for Reinsurer's Alleged Breach of Implied Covenant of Good Faith and Fair Dealing

jkingsley@goldbergsegalla.com (Jeffrey L. Kingsley) — Tue, 20 May 2008 11:50:00 -0400
On April 21, 2008, a district court decision in California, captioned California Joint Powers Insurance v. Munich Reinsurance America, Inc. addressed for the first time the issue of whether a reinsured can seek tort damages against a reinsurer for breach of the covenant of good faith and fair dealing. The District Court declined to allow a reinsured to seek such relief and dismissed that cause of action against the reinsurer. The Court concluded that a reinsured, unlike typical insureds, is not seeking peace of mind or security in obtaining an insurance policy but rather it is seeking the ability to write more policies than its reserves would otherwise allow. For more information regarding this decision, contact Jeffrey Kingsley.

Foley & Lardner: Between Mediation and Arbitration — Binding Mediation: The Third Alternative

CaseWatch: Insurance – Decisions from The Insurance and Reinsurance Report – May 23, 2011

CaseWatch: Insurance - Decisions from The Insurance and Reinsurance Report - March 2011

Goldberg Segalla’s Reinsurance Review – February, 2011

How Dodd-Frank Undermines Reinsurance and Endangers American Policyholders

Goldgerg Segalla’s Reinsurance Review – January, 2011

Top Case of the Week: Second Circuit Affirms Dismissal of Complaint Against Reinsurer

Peter Chaffetz: The Financial Crisis’ Impact on Reinsurance

Europe's Insurers Enter New Phase in Solvency II Process

South Korea's Reinsurance Market Experiencing Softening Cycle

Compliance and Claims Issues for Foreign (Re)insurers Arising from the Chile Earthquake

Reinsurer’s Right to Access Ceding Insurer’s Records

Goldberg Segalla’s Reinsurance Review – August, 2009

Court Confirms Reinsurance Arbitration Award, Rejecting Numerous Procedural Challenges

Reinsurance Pool Representative Says It’s Not Proper Party In Suit

Reinsured is Not Entitled to Tort Damages for Reinsurer's Alleged Breach of Implied Covenant of Good Faith and Fair Dealing

Insurance Law Community Reinsurance

Foley & Lardner LLP: The Reinsurance Industry Needs to Understand and Comply With the FCPA

Goldberg Segalla’s Reinsurance Review – October, 2011

Foley & Lardner: Avoiding Problems With Arbitrator Disclosures: Practical Lessons From Karlseng v. Cooke