January 2018 – The third installment of Chaffetz Lindsey’s Insurance/Reinsurance Report is now available. The report contains recent case summaries to keep you informed on new developments, and reminded of old ones. The cases in this issue include:
New York Court of Appeals Holds that Reinsurance Contracts are Governed By Ordinary Principles of Contract Interpretation … Implicitly rejecting the Bellefonte rule, the Court rules that Excess v. Factory Mutual did not create a special rule capping reinsurers’ obligations for defense costs in addition to limits.
Foreign insurer required to post pre-answer security before moving to compel arbitration … New York Insurance Law § 1213(c) applies to policies issued through foreign brokers.
Following Viking Pump, the Second Circuit applies “all sums” allocation to long tail environmental losses … “Prior insurance” and “continuing loss” provisions required all sums allocation.
Arbitration award vacated for “evident partiality” based on party-appointed arbitrator’s non-disclosure of its relationships with individuals affiliated with cedent … Parties’ agreement to use non-neutral party-arbitrators did not preclude application of “evident partiality” ground for vacatur.
To view the report in its entirety, please click here.
Illustrations by Hank Blaustein