Wiley Rein regularly represents both reinsurers and ceding companies in addressing the complex issues that arise under treaty, excess treaty and facultative reinsurance arrangements. Our attorneys have handled reinsurance arbitrations and litigation in connection with significant claim disputes, including those arising from asbestos, environmental, mass tort, pharmaceutical and product liability losses; have served as arbitrators in reinsurance disputes; and represent parties in litigation regarding arbitrability and the scope and structure of arbitrations under the Federal Arbitration Act.
Our representation of reinsurers and ceding companies also includes facilitating resolutions of contested claims without the necessity of arbitration or litigation through settlements, commutations and other agreements. We have assisted our clients with respect to a myriad of underwriting issues, have examined the adequacy of reinsurance in mergers and acquisitions and frequently provide our clients with advice concerning the evaluation and resolution of reinsurance and retrocession claims.
Through this work, we have experience with a wide range of recurring reinsurance issues, including:
- The application and limits of the "follow-the-fortunes" and "follow-the-settlements" doctrines.
- Allocation of loss and expense with respect to multiple occurrences, multiple policies and multiple policy periods.
- Access to records and claim audits.
- Issues relating to substantiation of claims.
- The application of aggregation and accumulation provisions found in some reinsurance agreements.
- The existence and scope of coverage for declaratory judgment expenses.
- Reinsurance treatment of extra-contractual obligations.
- "Payback" claims.
- Claims and defenses based upon misrepresentation and non-disclosure, including rescission and reformation.
Wiley Rein and several of the partners active in the reinsurance practice are members of the AIDA Reinsurance and Insurance Arbitration Society (ARIAS-US). Our attorneys frequently write and speak on reinsurance topics in a variety of legal and industry publications and at meetings of professional and industry organizations.
ISSUE: MAY 2013