Pesky Facts Result in a Denial of Summary Judgment in a Post-Settlement Allocation Case

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Since the 1970s cedents and reinsurers have been battling over long-term environmental pollution damage. Disputes have arisen over the number of retentions that the cedent should take, the manner in which settlement with the insured should be allocated and other issues. In a recent case, a reinsurer sought summary judgment on a cedent’s breach of contract claim over a specific pollution claim. Unsurprisingly, disputed facts got in the way.

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Back-to-Back Presumption Prevails to Key Cedent’s Reinsurance Recovery

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A key feature of facultative reinsurance is the back-to-back nature of the coverage. While not all facultative placements are meant to be back-to-back, most are and as shown by the case discussed below, that is a strong presumption under English law.

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