A Florida Court of Appeal has affirmed a summary judgment in favor of a reinsurer arising out of the partial assignment of the underlying insurance policy as security for a loan, where the reinsurer paid the insured $8 million for a fire loss, ignoring the recorded assignment. Banco Ficohsa v. Aseguradora Hondurena, S.A., – So.2d -, 2006 WL 1999368 (Fla. 3rd DCA July 19, 2006) (slip opinion). Carlton Fields represented Banco Ficohsa in the appeal of this case.
Reinsurance Claims
Judge finds ambiguity as to whether two reinsurance agreements provide for a single or an annual aggregate limit
Cross motions for summary judgment were denied in Professional Consultants Insurance Co. v. Employers Reinsurance Co., Case No. 1:03-cv-216 (D. Vt. March 28, 2006), where the Court found that two reinsurance agreements covering professional liability policies were ambiguous as to whether the reinsurance provided an aggregate annual, or a per-policy, limit on the liability of the reinsurer. This case settled and was dismissed in June 2006. Professional Consultants Insurance Company v. Employers Reinsurance Company, 2006 WL 751244 (D. Vt. March 8, 2006) (slip opinion).
Denial of pre-pleading security is appealable in Connecticut
The Connecticut Supreme Court, reversing a decision of the Connecticut Appellate Court that found the issue not to be appealable, has found that the denial of a motion for pre-pleading security in a case brought by Hartford against unauthorized reinsurance companies was an appealable final judgment. The Supreme Court remanded the case for consideration of the merits of the appeal by the Court of Appeal. Hartford Accident and Indemnity Co. v. Ace American Reinsurance Co., – A.2d -, 2006 WL 1982910 (Ct. July 25, 2006) (slip opinion).
Hartford and Equitas reach settlement
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.
Choice of law for reinsurance of commercial general and professional liability insurance
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).