Law360, New York (December 23, 2009, 10:44 AM EST) -- In Lexington Insurance Company v. WASA International Insurance Company, a case of fundamental importance to the reinsurance market, and particularly non-UK insurers reinsuring into London, the House of Lords has ruled on the efficacy of back-to-back provisions and the impact of clauses in the underlying insurance on the related reinsurance.
The dispute arose out of the facultative proportional reinsurance by the reinsured, Lexington, of the environmental cleanup costs incurred by its insured, Alcoa Inc.
In the early 1990s, Alcoa had been ordered by the U.S. Environmental...
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