Reinsurance and Excess Insurance

Insurance + Reinsurance Group lawyers represent both cedents and reinsurers in the litigation and arbitration of matters arising under reinsurance treaties and facultative contracts. Many of our matters relate to coverage disputes arising out of complex insurance programs, including captive reinsurance and other fronting arrangements. Our disputes have involved actuarial and agency issues, and underwriting and claims-handling practices. We have been involved in litigation regarding issues where the cedent provided late notice, or made voluntary payments where coverage did not exist, arising out of asbestos, toxic tort, and environmental litigation. We also handle disputes arising out of the reinsurer's right to participate in the defense of a claim. The lawyers in our group also advise cedents regarding reinsurance contract language and establish to the reinsurer the foundation for affording coverage in the underlying matter. We also assist our clients in structuring creative solutions to disputes, including commutations and novations. In an area of increasing concern to the insurance industry, we have also represented both cedents and reinsurers in disputes regarding the discoverability of reinsurance documents in insurance coverage litigation.

As a result of the large exposures presented in many of our matters, we frequently deal with excess insurance issues. Among the excess insurance matters we have handled are disputes involving allocation, drop down, exhaustion, the application of aggregate limits, the insolvency of primary insurers and insureds providing primary coverage under a self-insured retention, and the interpretation of "following form" and "other insurance" provisions.

    • Experience
      • Prevailed in reinsurance arbitration against program reinsurer over monies owed under multiple years’ contracts reinsuring commercial liability, property, and liquor liability losses. Arbitration included actuarial assessments of future losses and expert opinions regarding claim handling. Also obtained favorable rulings regarding prehearing security and attorneys' fees.
      • Successfully represented insurance company in parallel reinsurance disputes with its Bermuda reinsurer, obtaining almost $1 million of collateral required under several programs of insurance.
      • Representing reinsured in attempt to enforce arbitration agreement and recover from reinsurer its portion of overcharges of workers' compensation insurance premiums.
      • Represented party in reinsurance dispute concerning payment by reinsurer of share of settlement of coverage dispute related to underlying asbestos-related claims; issues included dispute over appointment of umpire for arbitration.
      • Represented party in reinsurance dispute and litigated issue about whether arbitrations relating to 12 different reinsurance agreements could be consolidated into a single arbitration.
      • Provided ongoing reinsurance advice to Fortune 100 company regarding its worldwide captive insurance program and the negotiation and securitization through reinsurance of that program.
      • Represented reinsured in dispute with reinsurance broker about return of collateral provided by reinsurer at alleged termination of reinsurance agreement.
      • Represented professional liability insurer seeking to rescind policy issued to reinsurance company as a result of claims made against reinsurer for improperly calculating collateral requirements and wrongfully failing to release collateral, which claims were known to reinsurer at time of professional liability renewal policy application.
      • Represented reinsured in litigation with its reinsurer concerning the breach of a commutation agreement related to the reinsurance program.
      • Represented insurers and reinsurers in efforts to obtain protective orders precluding discovery of communications with reinsurers and reinsurers' claim files.
      • Defended insurer against reinsurer's unsuccessful application to vacate arbitration award on factual grounds.
      • Industrial Risk Insurers v. Hartford Steam Boiler Inspection & Inspection Co.
        273 Conn. 86 (2005) Represented insurer in case where trial court’s refusal to grant reinsurer’s application to vacate arbitration award upheld on ground that courts cannot review evidence or otherwise second-guess arbitrators' factual determinations.
      • Industrial Risk Insurers v. Hartford Steam Boiler
        258 Conn. 101 (2001)
        Represented all-risk insurer in $103 million coverage dispute with reinsurer over boiler and machinery loss involving a three-phase arbitration, seven superior court actions, and four appeals.
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