Solving Sovereign Immunity Issues In Reinsurance Disputes

Law360, New York (October 2, 2015, 11:07 AM EDT) -- The issue of sovereign immunity continues to bedevil U.S. cedents and retrocedents that seek to collect from foreign reinsurers which are owned, in whole or in part, by foreign states and that, as part of that collection effort, invoke a state's preanswer security requirements. While a proven solution to this problem is the existence of an agreement to arbitrate which is binding on both parties to the dispute, that avenue may not be available if either the plaintiff or the defendant in question is not actually a party to that agreement....

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