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

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...

McCarter & English on Eighth Circuit Affirms Summary Judgment in Favor of Reinsured Concluding the Reinsurance Agreement Unambiguously Requires the Reinsurer to Follow the Settlements

By Cynthia Morrison, Associate, McCarter & English, LLP "Reinsurance, as a specialized industry, utilizes unique terms that are often the subject of disputes between the reinsurer and reinsured. One unique term is the 'follow the fortunes' doctrine which is interpreted, generally...

The Reinsurance Contract – New Appleman on Insurance Law Library Edition, Chapter 72

By Keith A. Dotseth, Michael J. Steinlage, David C. Linder and Melissa M. Weldon, Partners, Larson • King, LLP Chapter 72 discusses basic principles related to the formation and terms of reinsurance contracts. The chapter begins by considering the manner in which reinsurance contracts are formed...

Duties of the Cedent – New Appleman on Insurance Law Library Edition, Chapter 73

By Robert Tomilson, Benjamin Blume, and Daisy Khambatta, Members, Cozen O'Connor It might be said that while a reinsurer has only one duty, to pay covered claims, a cedent's duties are manifold. The cedent, usually without the consent or participation of the reinsurer, underwrites the risk...

Duties of Reinsurers – New Appleman on Insurance Law Library Edition, Chapter 74

By Daniel W. Gerber, Jeffrey L. Kingsley, and Clayton D. Waterman Chapter 74 provides a comprehensive analysis of the duties, obligations and limits of reinsurers in reinsurance transactions. Section 74.01 begins by examining the duty of utmost good faith. Section 74.01[1] discusses the cedent's...