Appeal of decision with respect to attempted avoidance of reinsurance, with an extensive discussion of the duties of disclosure and the underwriting process. Court of Appeals held that a reinsured under an excess of loss reinsurance agreement did not owe its reinsurers an implied duty of care to underwrite ceded risks in a prudent manner. Available at Bonner & Ors v. Cox & Ors, 2005 EWCA Civ 1512 (Court of Appeal Civil Division December 8, 2005).
Arbitration / Court Decisions
Recent Developments in Excess Insurance, Suplus Lines Insurance, and Reinsurance Law, 40 Tort Trial & Insurance Prac. L. J. 397 (2005). Article covering development during 2005 in excess insurance, surplus lines insurance and reinsurance. The reinsurance portion of this article covers three broad issues, coverage, arbitration and litigation, with the following subparts: Coverage – following liability, utmost good faith, aggregation and annualization, late notice, extracontractual obligations, privity and cut-through and terrorism; Arbitration – arbitrability, stay of litigation or arbitration proceedings, panel composition, consolidation, confirmation/vacation of awards, discovery and confidentiality of award; Litigation – in personam jurisdiction and indispensable parties, subject matter jurisdiction, forum non conveniens/improper forum, discovery and insolvency. Available on WESTLAW at 40 TTIPLJ 397.
Web site of the UK regulatory body, the Financial Services Authority (FSA)a>.
Court compels arbitration of disputes with respect to two excess of loss reinsurance agreements covering medical malpractice liability insurance. The court interpreted an exception to the arbitration provision to be limited to disputes over the validity or formation of the reinsurance agreements. Medical Insurance Exchange of California v. Certain Underwriters at Lloyds, London, 2006 WL 463531 (N.D. Cal. Feb., 24, 2006) (slip opinion).
United States Court of Appeals for the Seventh Circuit reversed the dismissal of a suit against a Barbados-domiciled reinsurer for lack of personal jurisdcition, finding that since the Plaintiff had made a prima facie case for general personal jurisdiction it was entitled to take discovery on jurisdictional issues. Central States, Southeast and Southwest Areas Pension Fund v. Phencorp Reinsurance Company, Inc., – F.3d -, 2006 WL 590370 (7th Cir. Mar. 13, 2006) (slip opinion).