STORY FROM: Reinsurance & Arbitration
Reinsurer Obligated to Pay Defense Costs, Century Argues to N.Y. High Court
April 21, 2017
NEW YORK — A reinsurer is obligated to pay defense costs outside of indemnity limits because the reinsurance certificates at issue are concurrent with the underlying policies, Century Indemnity Co. has argued in a brief filed before New York’s highest court.
In an April 14 filing in the New York Court of Appeals, Century further maintains that the certificate’s “Reinsurance Accepted” provision does not explicitly cap the maximum amount that Global Reinsurance Corporation of America is obligated to pay for loss and expenses combined. Moreover, the court has never addressed the question of whether the stated limit represented an absolute ...
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