Introduction to Reinsurance.pdf - Prince Lobel
Introduction to Reinsurance.pdf - Prince Lobel Introduction to Reinsurance.pdf - Prince Lobel
Ex Gratia Payment and Bad Faith Liability Where it appears to a reinsurer that an "ex gratia" payment has been made, reinsurers will challenge their obligations under the reinsurance contract absent and express grant of coverage for “ex gratia” payments. The reinsurer's obligation, in general, is to indemnify the insurer for losses properly covered under the policy. Where judgments or settlements arguably arise from negligent claims handling, bad faith, etc., absent specific coverage grants in the reinsurance agreement, there likely is no coverage for bad faith payments or payments in excess of the underlying policy limits.
Declaratory Judgment Actions: Although many reinsurance contracts contain precise terms outlining the reinsurer's participation in defense costs and expenditures, loss adjustment costs, etc., older contracts are generally silent on the question of declaratory judgment costs and expenses relating to declaratory judgment actions. Modern contracts often expressly address declaratory judgment expenses. Under older contracts, ceding insurers generally take the position that declaratory judgment expenses are covered under loss adjustment expense or other expense coverage under the contracts. Not surprisingly, many reinsurers point to the failure of the contracts to address declaratory judgment expenses as evidence of the intent not to cover such costs.
- 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 and 28: “Uberrimae Fides” or the Duty o
- Page 29 and 30: April 4, 2008 Common Problems and I
- Page 31 and 32: Right of Inspection: Virtually all
- Page 33: Non-Congruence of Insurance and Rei
- 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
Declara<strong>to</strong>ry Judgment<br />
Actions:<br />
<br />
Although many reinsurance contracts contain precise terms outlining<br />
the reinsurer's participation in defense costs and expenditures, loss<br />
adjustment costs, etc., older contracts are generally silent on the<br />
question of declara<strong>to</strong>ry judgment costs and expenses relating <strong>to</strong><br />
declara<strong>to</strong>ry judgment actions.<br />
Modern contracts often expressly address declara<strong>to</strong>ry judgment<br />
expenses.<br />
<br />
Under older contracts, ceding insurers generally take the position that<br />
declara<strong>to</strong>ry judgment expenses are covered under loss adjustment<br />
expense or other expense coverage under the contracts.<br />
<br />
Not surprisingly, many reinsurers point <strong>to</strong> the failure of the contracts<br />
<strong>to</strong> address declara<strong>to</strong>ry judgment expenses as evidence of the intent<br />
not <strong>to</strong> cover such costs.
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