A 'Storm Warning' For The Reinsurance Industry

Law360, New York (January 4, 2011, 3:22 PM EST) -- Recent cases have highlighted the importance of the “storm warnings” doctrine in reinsurance and arbitration cases. This doctrine states that when a party receives “company-specific information” or storm warnings that it is being defrauded, it comes under a duty to inquire into the circumstances. When such a duty arises, the statute of limitations begins to run. Since this issue arises most frequently in cases involving fraud claims, for which the statute of limitations in most states is one year, it is especially important to note what...
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