Goldberg Segalla’s Reinsurance Review – October, 2011

Lexis.com subscribers may access the enhanced versions of the cases below. Non-subscribers may access the free, unenhanced versions on lexisONE , if available. U.S. CIRCUIT COURT DECISIONS EIGHTH CIRCUIT EMPLOYERS REINSURANCE CO. V. MASSACHUSETTS MUT. LIFE INS. CO. No. 10-3099; Sept. 7, 2011) ...

Courts Continue To Resist Confidentiality in Filing Arbitral Vacatur/Confirmation Proceedings; Other Rulings Lead To Confirmation of Award

By Louis M. Solomon, Partner, Cadwalader, Wickersham & Taft LLP Harper Ins. Ltd. v. Century Indemnity Co. , 10 Civ. 7866 (S.D.N.Y. July 2011)(NRB) (Free Download), addresses cross-petitions to vacate and confirm an arbitral award. The case addresses several typical issues arising in such proceedings...

2011 in Review: 10 Biggest Insurance Regulatory Headliners

By Fred E. Karlinsky, Richard J. Fidei, and Elizabeth M. Fohl, Attorneys, Colodny, Fass, Talenfeld, Karlinsky & Abate Fred E. Karlinsky, Richard J. Fidei, and Elizabeth M. Fohl of the law firm of of Colodny, Fass, Talenfeld, Karlinsky & Abate have written a round-up of the ten most important...

HHS Releases Final Rule and Interim Final Rules on Affordable Care Act's State Health Insurance Exchanges

On March 12, 2012, the U.S. Department of Health and Human Services (HHS) released the long-anticipated Final Rule and Interim Final Rules (the "Rules") on the Patient Protection and Affordable Care Act's (ACA) state health insurance exchanges ("Exchange(s)"), a key element of...

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

By Max B. Chester , Partner, Foley & Lardner LLP The reinsurance industry has been in existence for several centuries and has developed its own ways of doing business and cultivating relationships, often based on personal interactions and a healthy dose of entertainment. The Foreign Corrupt...

Reed Smith LLP on What to Do When Your Insurance Company Goes Broke

By Timothy P. Law, Partner, Reed Smith LLP Insurance company insolvencies cause disruption to businesses and create a risk of serious financial loss. In many instances, however, policyholders can make a full recovery or mitigate their losses by considering all appropriate avenues of recovery. This...

Sutherland Legal Alert: New York State Senate Passes Domestic Excess Lines Bill

By John Pruitt and Justin Kitchens, Sutherland Asbill & Brennan LLP The New York State Senate has passed a bill authorizing the formation and licensing of New York domestic excess lines insurance companies. [1] The bill would allow such companies to write insurance in New York on the same basis...

Introduction and General Principles of Reinsurance Law – New Appleman on Insurance Law Library Edition, Chapter 71

By Daniel W. Gerber, Jeffrey L. Kingsley and Fallyn B. Reichert, Attorneys, Goldberg Segalla LLP Chapter 71 provides a thorough introduction to reinsurance and its commercial purposes; the operation of reinsurance contracts; and certain fundamental legal concepts. Section 71.01 begins by discussing...

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...

Reinsurance Intermediaries – New Appleman on Insurance Law Library Edition, Chapter 75

By Marc J. Pearlman, Mark A. Kreger, and Steve Nunn This chapter begins with a description of the key functions performed by reinsurance intermediaries. (Note that intermediaries can be individuals or entities.) Section 75.01 notes that these functions must be distinguished from those performed by...

Utmost Good Faith – New Appleman on Insurance Law Library Edition, Chapter 76

By Barry Leigh Weissman, Partner, Edwards Wildman Palmer LLP, and Bella Shirin, Associate, SNR Denton US LLP Chapter 76 discusses the role of utmost good faith in reinsurance transactions and dispute resolution. Section 76.01 explains how the English doctrine of uberrimae fidei , first discussed...

Reinsurance Dispute Resolution – New Appleman on Insurance Law Library Edition, Chapter 77

By David A. Attisani and Ethan V. Torrey, Partners, Choate, Hall & Stewart LLP Fair, efficient, and reliable dispute resolution procedures are vital to protect the rights and clarify the duties of parties arising under reinsurance contracts. This chapter provides a broad overview of reinsurance...

Regulation of Reinsurance – New Appleman on Insurance Law Library Edition, Chapter 78

By Kimberly M Welsh, Vice President and Assistant General Counsel, RGA The following chapter discusses important principles of reinsurance regulation today. It begins in Section 78.01 with an overview of the regulatory framework for reinsurers and reinsurance transactions in the United States. Reinsurance...

Lloyd’s and the London Market – New Appleman on Insurance Law Library Edition, Chapter 79

By James Crabtree, Anthony Menzies, Jonathan Rogers, and Susannah Wakefield, Partners, Taylor Wessing This chapter begins in Section 79.01 with a discussion of the history and structure of the Lloyd's Market. A clear understanding of the Lloyd's (and wider London) Market, as it operates today...

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...

State Net Capitol Journal Legislative Updates: Florida Adopts Interstate Insurance Product Regulation Compact

BUSINESS: In FLORIDA, Gov. Scott signs HB 383, which adds the Sunshine State to those that have adopted the Interstate Insurance Product Regulation Compact, which serves as a central point of electronic filing for insurance products like life insurance, annuities, disability income and long-term care...

Consequences of Insurer Insolvency – New Appleman on Insurance Law Library Edition, Chapter 102

By Bruce Baty and Jodi Adolf Abstract * * * Chapter 102 discusses the consequences of an insurer insolvency for the policyholders, agents, excess insurers and reinsurers of the insolvent insurer. The chapter begins in Section 102.01 with a general discussion of the liquidation process...

Case Studies of Insurer Insolvencies – New Appleman on Insurance Law Library Edition, Chapter 104

By Patrick H. Cantilo, Mark F. Bennett, and Arati Bhattacharya Abstract *** In this chapter, five insurance insolvencies are discussed in detail to illustrate a number of the issues that are presented in the management of troubled insurers. The companies discussed are the Legion Insurance...

Discovery In Reinsurance Allocation Disputes After USF&G v. American Re

By Robert M. Hall I. Introduction Reinsurance allocation disputes arose out of mass torts that extend over multiple years and impact on many individuals or properties i.e. pollution and asbestos-related losses. When a cedent settles such losses, allocation to reinsurers can become complicated given...

FHFA Announces Ban for Reimbursement of Expenses For Captive Reinsurance Arrangements

On November 5, 2013, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the GSEs) will no longer reimburse their participating servicers for expenses arising out of captive reinsurance arrangements. Captive reinsurance occurs when the servicer purchases a lender-placed...

Commercial Court Clarifies the Position on Follow Settlement Clauses for Retrocessionaires

On 6 November 2013, the Commercial Court handed down its judgment in Tokio Marine Europe Insurance Ltd v Novae Corporate Underwriting Ltd [2013] EWHC 3362 (Comm). Mr Justice Hamblen held that the defendant retrocessionaire had agreed to follow the insurer's settlements in respect of the underlying...

2013 in Review: 10 Most Important Insurance Regulatory Developments

Fred E. Karlinsky, Richard J. Fidei, Trevor B. Mask, and Benjamin J. Zellner of the law firm of Colodny, Fass, Talenfeld, Karlinsky, Abate & Webb have written an in-depth commentary comprised of a round-up of the ten most important developments in federal and state insurance regulation of 2013. Highlights...

Reforms to the Insurance Sector in India: The Wait Continues

By John Goulios , Biswajit Chatterjee , Daniel Sharma, LL.M. , and Joywin Mathew The winter session of the India parliament concluded on December 20,2013. Against the backdrop of the slowing growth rate and demands from the investment community for economic reforms, one critical piece of legislation...

Report to NAIC on Captives: The Controversy About Principle-Based Reserves and Captives Continues

The use by life insurance companies of captive reinsurance companies to finance XXX and AXXX reserves has been a significant and contentious issue in recent years.[1] Some members of the National Association of Insurance Commissioners (the "NAIC") are deeply opposed to captive-based financing...