Reinsurance

At Litchfield Cavo LLP, we stay on top of trends and strategies that protect clients in all manner of reinsurance issues, including negotiation, litigation and alternative dispute resolution.

Our attorneys represent cedants, reinsurers, retrocessionaires, and international and domestic insurers with the vigor and attention to communication and service that are the hallmarks of all our practice areas.

We appear on behalf of reinsurance clients in state and federal trial and appellate courts, in mediation and before arbitrators. Our experience in this regard gives our attorneys insight into anticipating and preventing future disputes.

Our significant experience litigating environmental and latent health, construction defect and coverage matters with the associated trigger and allocation issues gives us particular insight into long-tail, delayed manifestation issues involving multiple policies and multiple years of coverage.

We are qualified to interpret a wide variety of reinsurance instruments, including proportional and non-proportional facultative reinsurance certificates, excess of loss treaty reinsurances, surplus share, pro rata, quota share and retrocession agreements.

Our attorneys are well-versed in  the following issues:

  • Follow-the-fortunes
  • Pre-answer security
  • Loss adjustment expense allocation
  • Utmost good faith
  • Aggregation and allocation
  • Extra-contractual liability

Additionally, the firm includes senior attorneys who have either consulted or testified as expert witnesses in reinsurance matters. We are able to do so because we stay current with court decisions and developments in reinsurance law.

Our reinsurance record

Examples of some recent representations include the following:

  • Successful arbitration for a treaty reinsurer. Issues in the case included determining the number of loss occurrences, allocating loss over multiple treaties, the follow-the-fortunes doctrine and extra-contractual liability.
  • Representation of a reinsurer in commutation negotiations. Our client's initial offer was eventually accepted.
  • Representation of a cedant in court. Issues in the case included the follow-the-fortunes doctrine, trigger of coverage and allocation.
  • Acted as a consultant and expert witness in reinsurance litigation involving the application of a computer model to allocate a settlement to reinsured policies issued over time in different coverage layers.