NY Cedents Enjoy More Protection And Authority

Law360, New York (March 1, 2013, 1:22 PM EST) -- After the New York Court of Appeals issued its decision in United States Fidelity & Guaranty Co. v. American Re-Insurance Co. (N.Y. Feb. 7, 2013), some commentators have characterized the decision as one favorable to reinsurers. However, the Court of Appeals actually provides further support for expanding the protections of the “follow-the-settlement” doctrine to post-settlement allocation decisions.

In addition, the court rejected the reinsurers’ defenses based on the fact that the cedent’s actions allowed it to access additional reinsurance than could have been accessed if the...
To view the full article, register now.