| TYPE OF CASE |
DETAILS |
RESULT |
| ALLOCATION ISSUES |
Arbitration against Reinsurer to collect balances in the approximate amount of $3.5 million which was being withheld based on allocation issues. |
Full amount awarded to client by Arbitration Panel after hearing in which witnesses were impeached on coverage expertise and knowledge of reinsurance. |
| OCCURRENCE ISSUES |
Arbitration against Cedant with respect to 5 facultative certificates for asbestos and non-asbestos products claims in which number of occurrences was at issue. |
Settled arbitration and negotiated commutation of all 5 certificates for a savings of $2.1 million reduction from billings and a $1.5 million reduction from limits. |
| SEPTEMBER 11 PROPERTY DAMAGE |
Arbitration arising out of 9/11 property damage claims asserting that vandalism was the nature of the loss and therefore covered on a per risk basis rather than an occurrence basis. The impact of the vandalism classification was to potentially triple reinsurance recovery. Our client’s position was that the Treaty was exhausted. |
After final hearing Arbitration Panel award in favor of client. Savings of approximately $500,000; Cedant was attempting to use this as a “test case” for anticipated further arbitrations with other Reinsurers. |
| CLERGY SEXUAL MISCONDUCT CLAIMS |
Arbitration against Reinsurer to collect balances being withheld on lost policy issues and to avoid follow the fortunes based on bad claims handling exception. |
After final hearing Arbitration Panel award in favor of client in excess of $3.3 million. |
| EXTENDED WARRANTY PROGRAM ISSUES |
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| • LITIGATION |
Litigation brought by three Marketing Representatives against client based on Warranty Program and counter claims brought by client. |
Case settled after mediation with a reduced payment by client, 50% of which was set aside as a reserve fund and Letters of Credit established by Marketing Representatives to pay claims for ensuing small claims litigation. |
| • STATE TRUST FUND – LIQUIDATED INSURER |
The Liquidator of insurer had a Master Trust Account in their possession that had been set up under the Warranty Program. |
After lengthy discussions and verification of entitlement, negotiated the release of funds in the account in the total amount of $8.5 million to client. |
| • DEALER TRUST FUNDS |
Trust Funds set up under the Warranty Program on behalf of Dealers based on results; possession of accounts taken by client. |
Coordinated the closing of individual Dealer trust accounts throughout the nation and collected approximately $8.6 million on behalf of client with additional interest accruing to client’s benefit, as well as avoiding litigation with Dealers. |
| • REINSURANCE INTERMEDIARIES |
Commenced litigation on behalf of client over misappropriation of $825,587 of brokerage funds by Intermediary with respect to the Warranty Program at or about the time that it was announced that client would go into runoff. |
Complete recovery of full principal plus interest totaling $925,000 on behalf of client during initial stages of litigation after serving interrogatories for signature by Intermediary under oath. |
| FINITE RISK CONTRACT |
Arbitration over finite risk reinsurance agreement with |
After depositions of Reinsurer’s witnesses, settled arbitration and negotiated favorable commutation of reinsurance agreement with payment of $22 million to client. |
| LATE NOTICE ISSUES |
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| • CLASH COVER TREATIES |
Arbitration with London Reinsurers over late notice under various Clash Cover Treaties. |
Recovered $9.2 million, representing 90% of outstanding balances; $3.4 million of which related to commutation with company which was outside of arbitration and presented to market 2 ˝ months before payment. Case had originally been “stalled” by London Reinsurers requiring court intervention to get case into arbitration. |
| • FALCUTATIVE CERTIFICATE |
Arbitration against retrocessionaire seeking to collect approximately $800,000. |
Full amount recovered after depositions, but prior to hearing. |
| ALLOCATION ISSUES |
Arbitration against retrocessionaire seeking to collect approximately $500,000. |
Full amount recovered during depositions. |
