In a perfunctory order, a court has confirmed an award related to amounts owed under facultative reinsurance certificates in connection with asbestos injuries and lawsuits dating back to 1980. In 2003, the reinsurer had agreed to pay a portion of the claims, subject to the terms of the underlying commercial liability insurance policy. When the reinsured submitted a claim after the reinsurance attachment point was reached in 2009, however, the reinsurer refused to pay. The parties arbitrated the dispute, and a final award in the reinsured’s favor was issued in June 2011. The reinsured then successfully petitioned the court to confirm the award, arguing that the reinsurer was estopped from contesting it, having failed to object to the award within three months of its entry. ACE Property & Casualty Insurance Co. v. Global Reinsurance Corp. of America, Case No. 1:11-cv-06945 (USDC S.D.N.Y. July 25, 2012).
This post written by Michael Wolgin.
See our disclaimer.