Travelers V. INA And The Follow-The-Fortunes Doctrine
August 10, 2010, 6:03 PM EDT
Law360, New York (August 10, 2010, 6:03 PM EDT) -- In Travelers Casualty Co. v. Insurance Co. of North America, the U.S. Court of Appeals for the Third Circuit confronted the difficult problem of how cedents and reinsurers allocate liabilities across 11 years of coverage and three layers of primary and excess insurance. Not surprisingly, this thorny reinsurance problem began with an equally troubling liability coverage claim.
Travelers’ insured faced thousands of injury claims involving breast implants and pesticides. The insured submitted claims under 11 years of primary coverage from 1976 to 1987. The primary policies,...