The UK Commercial Court has held that a reinsurer is not bound by a contract signed by an agent, supposedly on its behalf, due to the lack of authority to do so, rejecting contentions that the agent had ostensible authority to do so, or that the reinsurer had ratified the contract. ING Re (UK) Limited v. R & V Versicherung AG,  EWHC 1544 (Commercial Court June 29, 2006).
Arbitration / Court Decisions
Hartford Financial Services Group announced that it had reached an agreement with Equitas, Ltd. to resolve long-pending disputes regarding Hartford's ceded and assumed domestic reinsurance exposures with Equitas. Terms of the agreement were not disclosed.
When a dispute arose over reinsurance for commercial general and professional liability insurance, and the reinsurance agreements were silent as to choice of law, a United States District Court has held that the choice of law provisions of the law of the forum state of the court control choice of law issues. ERC v. Laurier, case no. 03-1650, in the United States District Court for the Middle District of Florida (June 16, 2006).
Daniel J. Neppl, Reinsurance Coverage for “Annualized” Loss Presentations Under Multi-Year Policies: “follow the fortunes” or Bellafonte?, Coverage, vol. 16, no. 3 at 1 (ABA Litigation Section Committee on Insurance Coverage Litigation May/June 2006).