Reinsurance Review - December 2013 Edition December 31, 2013

In this, the final edition of the Reinsurance Review for 2013, we provide an update on recent decisions from the U.S. and U.K. We have also included a handful of the most significant reinsurance decisions from 2013.

In this month's edition: 

New Decsions 
US Cases
  • $6.7 Million Covered Judgment Did Not Trigger Reinsurance Contract’s $5 Million Attachment Point 
  • Reinsurer’s $5 Million Limit of Liability Is Inclusive of Defense Costs
  • Court Refuses to Dismiss Umpire Amidst Cedent’s Charges of Bias
  • After-the-Fact Reinsurance Agreement Does Not Divest Insurer of Right to Equitable Contribution From Co-Insurer
  • Reinsurer May Be Directly Liable to Underlying Insured for Breach of Contract and Bad Faith Arising From Handling of Asbestos Litigation
  • Mandatory Arbitration Provision Did Not Apply When Cedent Entered Rehabilitation
  • Indiana’s State Premium Taxes Cannot Be Imposed on Foreign Reinsurers Who Lack a Physical Presence in the State
U.K. Cases
  • English Commercial Court Reaffirms Follow-the-Settlement Doctrine
  • What Is the Nature of Brokers’ Duties? How Does This Impact Time Bar Issues? Commercial Court in England Takes a Closer Look 
Year in Review 
U.S. Cases
  • To [Follow] or Not to [Follow] — That Is the Question: New York Court of Appeals Hears Important Case on Follow-the-Fortunes
  • No Prejudice, No Problem: Reinsurer Not Required to Show Prejudice in Late Notice Dispute
  • Follow-the-Settlements Doctrine Still Leaves Room for Reinsurer to Challenge Cedent’s Allocation of Settlements Among Underlying Policies
  • Was Insurer’s Notice Proper, or May a Reinsurer Rely on Sunset Provision to Deny Coverage?
U.K. Cases
  • Rare Decision Issued: Recent English Court Decision Sheds Light on the Operation of Claims Control Clauses in Reinsurance Agreements
  • Good News: Well-Drafted Warranties Do Work
  • English Supreme Court Confirms the Correct Way an Insurance Tower Should Exhaust