Retrocessionaire Given the Green Light to Pursue Equitable Subrogation Claim Against Law Firm

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A retrocessionaire is two steps away from the policy issuing company and the insured so it is a pretty rare day when a retrocessionaire is allowed to pursue a recovery against a law firm that defended an underlying personal injury claim that went south.

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Third Circuit Affirms Dismissal of Insured’s Claims Against Reinsurer

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As we have said before, it is hard for a policyholder to make a case against its insurer’s reinsurer. That proved to be true again in the Third Circuit.

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Without a Contractual Relationship, Claims Against Reinsurers Fail

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To sustain a claim against reinsurers there has to be a contractual relationship between the party making the claim and the reinsurers. That is the prevailing rule in all jurisdictions, subject to rare exceptions. Nevertheless, policyholders, when left without a recovery from their insurer, will try to make out a claim directly against their insurer’s reinsurers. Typically, this effort meets with little success as we described in a blog post back in 2020.

Earlier this year, in a complicated credit insurance/reinsurance transaction involving a special purpose vehicle, a policyholder left without an insurance recovery tried again to recover its loss from its insurer’s reinsurers. The result was the same.

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