Follow-the-fortunes is a reinsurance concept that often is misconstrued. Some wish to impose it on every reinsurance contract regardless of whether a follow-the-fortunes clause exists. Cedents invoke it to compel payment from their reinsurers. In a recent case, the Eleventh Circuit had an opportunity to weigh in on whether the follow-the-fortunes doctrine should be inferred regardless of the contract wording and whether the terms of the reinsurance contract contained follow-the-fortunes language.Continue reading “Follow-the-Fortunes Rejected By 11th Circuit”
Understanding Reinsurance Terminology—Follow-the-Fortunes
Over the past several years, I authored several reinsurance commentaries for my friends at International Risk Management Institute, Inc. (“IRMI”) on follow-the-fortunes and follow-the-settlements as part of IRMI’s Expert Commentary series on IRMI.com.
This month, I took the liberty of updating, revising and combining all the past Commentaries on the follow-the-fortunes doctrine and follow-the-settlements, including aggregation, into a new Commentary. You can read the new Commentary here. This is part of my series of Commentaries on reinsurance terminology. I hope you find it useful.