Books


Reinsurance Law: An Analytic Approach

by Steven C. Schwartz

Add To Cart

For lawyers and insurance professionals, understanding the special vocabulary and methods of reinsurance law is essential. Reinsurance Law: An Analytic Approach covers all aspects of the field, large and small, from the varieties and uses of reinsurance to complex matters of law, markets and regulation.

Topics covered include: types of reinsurance contracts (facultative, treaty, proportional, non-proportional, and others); property and casualty reinsurance; life and health reinsurance; the convergence of reinsurance and finance; U.S. and overseas reinsurance markets; the role and liability of reinsurance brokers; common provisions in reinsurance contracts; reporting requirements; claims of privilege; grounds for disputing coverage; allocation of claims, including the follow-the-fortunes doctrine; rescission; managing general agents, managing general underwriters and pools; litigation; and insolvency of the insurer or reinsurer.

This unique guide features detailed discussion of the drafting and documentation of reinsurance contracts, a step-by-step guide to arbitration, and other useful resources for practitioners.

Book #00701; looseleaf, one volume, approximately 462 pages; published in 2009, updated as needed; no additional charge for updates during your subscription. Looseleaf print subscribers receive supplements. The online edition is updated automatically. ISBN: 978-1-58852-163-7

A combo subscription for the year includes 1 single user online subscription, and 1 copy of all print releases during that year. A single user online subscription is either an individual user name/password for one customer which can be accessed by up to two machines at one time by that one customer; or, a single use concurrent license in a group account environment. This may be set up as an IP authenticated or login/password account. To transition to a group account, click here.

Annual subscriptions to Law Journal Press books in print/online or online only format are valid for one year and include the cost of updates. Subscriptions are auto-renewed to avoid disruptions in service.


  • Availability: Available
  • Brand: Law Journal Press
  • Product Type: Books
  • Edition: 0
  • Page Count: 462
  • ISBN: 978-1-58852-163-7
  • Pub#/SKU#: 701
  • Volume(s): 1

Author Image
  • Steven C. Schwartz
Mr. Schwartz is a partner at Chaffetz Lindsey LLP in New York, where he focuses on reinsurance litigation and arbitration. Since the early 1990s, Mr. Schwartz has represented major insurance and reinsurance companies in disputes involving virtually all aspects of the business. He was educated at Princeton University, where he received his A.B., cum laude, in 1981; and at Columbia Law School, where he was a Harlan Fiske Stone Scholar, and received his J.D. in 1984.

CHAPTER 1
The Nature of Reinsurance

§ 1.01 Overview
§ 1.02 Reinsurance Defined
§ 1.03 Types of Reinsurance
[1] Facultative vs. Treaty
[2] Proportional vs. Nonproportional
[3] Traditional Reinsurance vs. Finite Risk
[4] Retrocessional Reinsurance
[5] Assumption Reinsurance
§ 1.04 Parties to a Reinsurance Contract

CHAPTER 2
The Uses of Reinsurance

§ 2.01 Overview
§ 2.02 Effects of Reinsurance
[1] Risk Spreading
[2] Result Smoothing
[3] Increasing Capacity
[4] Balance Sheet Treatment
§ 2.03 Reinsurance in Different Lines of Business
[1] Property/Casualty
[2] Life/Heath
§ 2.04 The Convergence Between Reinsurance and Finance
[1] Financial Guaranty Insurance
[2] Film Financing
[3] Securitization of Insurance Risk

CHAPTER 3
Basic Reinsurance Regulation

§ 3.01 Overview
§ 3.02 The System of State Regulation
[1] Evolution of the System
[2] State Insurance Departments
[3] The NAIC
[4] Federal Inroads
§ 3.03 The Purpose of Insurance/Reinsurance Regulation
[1] In General
[2] The Role of Reinsurance
§ 3.04 Reinsurance Regulatory Issues
[1] Credit for Reinsurance: Theory
[2] Credit for Reinsurance: Requirements

CHAPTER 4
Reinsurance Markets

§ 4.01 Overview
§ 4.02 Types of Reinsurers
[1] Professional Reinsurers vs. Reinsurance Departments
[2] Broker Markets vs. Direct Markets
§ 4.03 Geographic Markets
[1] The U.S. Market
[2] The London Market
[3] Bermuda
[4] Europe and Beyond

CHAPTER 5
Formation of Reinsurance Contracts

§ 5.01 Overview
§ 5.02 Disclosure Requirements
[1] The Duty of Utmost Good Faith
[2] Complying With The Duty of Utmost Good Faith
§ 5.03 The Role of Brokers in the Placement of Reinsurance Contracts
[1] In General
[2] Agency Issues Relating to Brokers
[3] Broker Liability
§ 5.04 Lead and Following Reinsurers
§ 5.05 Contract Documentation
[1] Slips
[2] Wordings
[3] Interests and Liabilities Contracts
[4] Facultative Certificates

CHAPTER 6
Reinsurance Contract Provisions

§ 6.01 Overview
§ 6.02  Provisions Common to Treaties and Facultative Certificates
[1] Basis of Reinsurance: The Reinsuring Clause
[2] Premium
[3] Limits
[4] Other Reinsurance
[5] Loss Provisions
[6] Follow-the-Settlements and Follow-the-Fortunes Provisions
[7] Access to Records
[8] Errors and Omissions
[9] Security Requirements
[10] Insolvency Clauses
[11] Intermediary Clauses
§ 6.03 Treaty Provisions
[1] Identification of Cedent
[2] Business Covered
[3] Basis of Coverage
[4] Exclusions
[5] Commencement and Termination
[6] Reinstatement Provisions
§ 6.04 Facultative Certificate Provisions
[1] The Certificate
[2] Declarations
[3] General Contract Terms

CHAPTER 7
Termination of Reinsurance Contracts

§ 7.01 Overview
§ 7.02 Contractual Termination Provisions
[1] Term vs. Continuous Contracts
[2] Basis of Termination
[3] Special Termination Clauses
[4] Sunset Clauses and Commutation Clauses
§ 7.03 Commutations
[1] Commutations Defined
[2] Drafting Problems
[3] Cession of Commutation Payments

CHAPTER 8
Reinsurance Contract Administration

§ 8.01 Overview
§ 8.02 Reporting by the Cedent
[1] The Need for Reporting
[2] Types of Reporting
§ 8.03 The Role of the Broker
§ 8.04 Access to the Cedent’s Records
[1] Contract Provisions
[2] Underwriting Audits
[3] Claim Audits
[4] Limits on Access
§ 8.05 Implications of Access
[1] Does Disclosure to a Reinsurer Waive Privilege?
[2] Are Reinsurers Entitled to Privileged Information?

CHAPTER 9
Reinsurance Claim Issues

§ 9.01 Overview
§ 9.02 The Follow-the-Fortunes/Follow-the-Settlements Doctrine
[1] The History and Nature of the Doctrine
[2] Application of the Doctrine
§ 9.03 Reinsurance Contract Issues
[1] Extracontractual Obligations and Excess of Policy Limits Judgments
[2] Declaratory Judgment Expenses
§ 9.04 Late Notice
[1] The Prejudice Requirement
[2] Notice as a Condition Precedent
[3] Bad Faith

CHAPTER 10
Allocation of Claims

§ 10.01 Overview
§ 10.02 The Allocation Problem
§ 10.03 Policy-Level Allocation Issues
[1] Trigger of Coverage
[2] Allocation to Triggered Policy Periods
[3] Allocation To Primary and Excess Layers
[4] Number of Occurrences
§ 10.04 Reinsurance Allocation Issues
[1] In General
[2] The Impact of the Reinsurance Contract
[3] Application of Follow-the-Fortunes/Follow-the-Settlements

CHAPTER 11
Rescission of Reinsurance Contracts

§ 11.01 Overview
§ 11.02 The Duty of Utmost Good Faith
[1] Origins of the Duty of Utmost Good Faith
[2] The Continuing Relevance of the Duty of Utmost Good Faith
[3] Obligations Imposed by Utmost Good Faith
[4] Remedies for Violation of the Duty of Utmost Good Faith
§ 11.03 Rescission Based on Misrepresentation or Nondisclosure
[1] Misrepresentation or Nondisclosure
[2] Materiality
[3] Reliance
[4] Is Intent Required?
§ 11.04 Other Grounds for Rescission
§ 11.05 Defenses to Rescission

CHAPTER 12
Managing General Agents, Managing General Underwriters, and Pools

§ 12.01 Overview
§ 12.02 MGAs and MGUs
[1] The Function of MGAs and MGUs
[2] Issues Relating to MGAs and MGUs
§ 12.03 Pools
[1] The Function of Pools
[2] Issues Relating to Pools

CHAPTER 13
Reinsurance Arbitration

§ 13.01 Overview
§ 13.02 Arbitration Basics
[1] What Is Arbitration?
[2] Statutory Framework
§ 13.03 Reinsurance Arbitration Clauses
[1] Scope of Arbitrability
[2] Composition and Appointment of Panel
[3] Arbitration Procedure
[4] Honorable Engagement
[5] Authorization to Confirm the Award
§ 13.04 Involvement of Courts Prior to Arbitration
[1] Motions to Stay Litigation and to Compel Arbitration
[2] Motions for Appointment of a Panel
[3] Pre-Hearing Challenges to an Arbitrator
[4] Consolidation
§ 13.05 Arbitration Procedure
[1] The Demand for Arbitration
[2] The Appointment of the Panel
[3] Position Statements
[4] The Organizational Meeting
[5] Pre-Hearing Security
[6] Discovery
[7] The Hearing
[8] The Award
[9] The Functus Officio Doctrine
§ 13.06 Confirming, Vacating and Modifying an Award
[1]  Confirmation
[2]  Statutory Grounds for Vacating or Modifying an Award
[3]  The “Manifest Disregard” Doctrine
§ 13.07 Res Judicata/Collateral Estoppel Effect of Arbitral Awards

CHAPTER 14
Reinsurance Litigation

§ 14.01 Overview
§ 14.02 Issues Raised by Service of Suit Clauses
[1] The Service of Suit Clause
[2] Does a Service of Suit Clause Waive a Right to Remove?
[3] Does a Service of Suit Clause Waive a Right to Arbitrate?
§ 14.03 Preanswer Security
[1] Statutory Requirements
[2] Constitutional Considerations
[3] Who Is Covered by Security Requirements?
[4] Who May Invoke Security Requirements?
[5] What “Pleadings” Trigger Security Requirements?
[6] Limitations on Security
§ 14.04 Issues Relating to Lloyd’s and Equitas
[1] Diversity Jurisdiction and Lloyd’s Syndicates
[2] Actions Against Equitas

CHAPTER 15
Insurer and Reinsurer Insolvency

§ 15.01 Overview
§ 15.02 The State System of Insurer Insolvency Regulation
[1] The Unavailability of Federal Bankruptcy Relief
[2] State Insurer Insolvency Statutes
[3] Guaranty Funds
[4] Interstate Coordination
§ 15.03 Insolvency Proceedings
[1] Supervision
[2] Conservation
[3] Rehabilitation
[4] Liquidation
§ 15.04 Marshalling Assets
[1] In General
[2] The Significance of Reinsurance
[3] Reinsurance Issues
§ 15.05 Paying Claims
[1] Procedure for Asserting a Claim
[2] Claim Disputes
[3] Claim Priority
[4] The Subordination of Reinsurance Claims
§ 15.06 Circumventing the Liquidation Process
[1] The Issue
[2] Contractual Cut-Through Provisions
[3] The Danger of Direct Payment Without a Cut-Through
[4] Direct Claims Without Cut-Throughs
§ 15.07 International Insolvency and Runoff Issues
[1] Schemes of Arrangement
[2] Part VII Transfers
[3] Enforcement of Foreign Proceedings in the United States

INDEX