Introduction to Reinsurance.pdf - Prince Lobel
Introduction to Reinsurance.pdf - Prince Lobel Introduction to Reinsurance.pdf - Prince Lobel
"Follow-the-Fortunes" Often expressly stated in the reinsurance agreement. Even where not expressly stated, it is generally recognized that it is inherent in the nature of the agreement. As a general rule, the follow-the-fortunes doctrine requires a reinsurer to indemnify a reinsured for any payments made by the reinsured for claims covered by the underlying policy, by settlement or adverse judgment, as long as those claims are not fraudulent, collusive or made in bad faith. See, e.g., Commercial Union Ins. Co. v. Seven Provinces Ins. Co., Ltd., 9 F.Supp.2d 49 (D. Mass. 1998), aff’d 217 F.3d 33 (1st Cir. 2000); Travelers Cas. & Surety Co. v. Gerling Global Reins. Corp., 2005 U.S. App. LEXIS 17526 (2d Cir. 2005); North River Ins. Co. v. ACE Am. Reins, Co., 361 F.3d 134 (2d Cir. 2004) Under this rule, a reinsurer cannot dispute the good faith determinations that a risk was covered under the underlying policy, or a good faith interpretation of the policy terms.
April 4, 2008 Common Problems and Issues in Reinsurance Mitchell S. King
- Page 1 and 2: April 4, 2008 Introduction to Reins
- Page 3 and 4: Overview What is Reinsurance Insu
- Page 5 and 6: Insurance/Reinsurance Similarities
- Page 7 and 8: How Reinsurance Works It spreads th
- Page 9 and 10: April 4, 2008 Types and Characteris
- Page 11 and 12: Characteristics of The Reinsurance
- Page 13 and 14: Forms of Reinsurance Pro Rata (“
- Page 15 and 16: Per Occurrence Excess Multiple Risk
- Page 17 and 18: The Anatomy of a Reinsurance Claim
- Page 19 and 20: The Anatomy of a Reinsurance Claim
- Page 21 and 22: The Anatomy of a Reinsurance Claim
- Page 23 and 24: The Anatomy of a Reinsurance Claim
- Page 25 and 26: April 4, 2008 Two Key Principles in
- Page 27: “Uberrimae Fides” or the Duty o
- Page 31 and 32: Right of Inspection: Virtually all
- Page 33 and 34: Non-Congruence of Insurance and Rei
- Page 35 and 36: Declaratory Judgment Actions: Alth
- Page 37 and 38: Agreements to Arbitrate and Confide
- Page 39 and 40: Agreements to Arbitrate and Confide
- Page 41 and 42: The Loss - Scenario A Mitchell's N
- Page 43 and 44: The Reinsurance Claim Big Heart In
"Follow-the-Fortunes"<br />
<br />
<br />
Often expressly stated in the reinsurance agreement. Even where not<br />
expressly stated, it is generally recognized that it is inherent in the<br />
nature of the agreement.<br />
As a general rule, the follow-the-fortunes doctrine requires a reinsurer <strong>to</strong><br />
indemnify a reinsured for any payments made by the reinsured for<br />
claims covered by the underlying policy, by settlement or adverse<br />
judgment, as long as those claims are not fraudulent, collusive or made<br />
in bad faith. See, e.g., Commercial Union Ins. Co. v. Seven Provinces<br />
Ins. Co., Ltd., 9 F.Supp.2d 49 (D. Mass. 1998), aff’d 217 F.3d 33 (1st<br />
Cir. 2000); Travelers Cas. & Surety Co. v. Gerling Global Reins. Corp.,<br />
2005 U.S. App. LEXIS 17526 (2d Cir. 2005); North River Ins. Co. v.<br />
ACE Am. Reins, Co., 361 F.3d 134 (2d Cir. 2004)<br />
Under this rule, a reinsurer cannot dispute the good faith<br />
determinations that a risk was covered under the underlying<br />
policy, or a good faith interpretation of the policy terms.
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