In an unreported opinion (not available on PACER) not involving reinsurance, the Second Circuit affirmed the rejection of a motion to vacate an arbitration award, where the motion was served within the three month period required by the Federal Arbitration Act (“FAA”) for service of such a motion, but was filed one day after the 90 day period expired for filing such a motion under applicable New York law. The Court found that since the FAA contained a service deadline, but not a filing deadline, it was appropriate to apply the filing deadline contained in New York state law, illustrating the importance of being cognizant of both service and filing deadlines. Hakala v. J. P. Morgan Securities, Inc., Case No. 05-3140 (2d Cir. June 21, 2006).
ACE Ltd. completes sale of runoff reinsurers
ACE Ltd. announced the completion of the sale of three runoff reinsurance companies to a London investment firm, reducing its legacy liabilities, including asbestos, by around $900 million and reducing its reinsurance recoverables by about $400 million. The deal, when proposed, drew objections from some of ACE's cedents.
Summary judgment for reinsurer affirmed in collateral assignment case
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.
UK – broker may assert lien for unpaid reinsurance premium
Under UK law, a reinsurance broker may assert a lien over claim proceeds for premiums for reinsurance coverage paid by the party's broker, but not reimbursed by the reinsured. Heath Lambert Ltd. v. Sociedad de Corretaje de Seguros, [2006] EWHC 1345 (June 9, 2006).
UK COURT APPROVES INSURANCE BUSINESS TRANSFER SCHEME FOR ZURICH GROUP COMPANIES
The High Court of Justice has approved an insurance business transfer scheme involving four Zurich group companies, finding that the report of an independent expert actuary supported capital retention needs. From a US standpoint, this opinion is interesting in its illustration of the role of an independent expert in such proceedings, where the retention of the expert and the report is approved by the FSA. In re Eagle Star Insurance Company Limited and Others, [2006] EWHC 1850 (Chancery Division June 29, 2006).