STORY FROM: Reinsurance & Arbitration
N.Y. Federal Magistrate Judge Recommends Denial of Claim for Reinsurance Costs Arising From 9-11 Attacks
December 5, 2017
NEW YORK — A New York federal magistrate judge has recommended denial of six insurers’ claims against the Islamic Republic of Iran for sums paid pursuant to reinsurance policies for damages arising from the Sept. 11, 2001, terrorist attacks, explaining that the insurers have no subrogation rights for such claims.
However, in the Nov. 27 order, Magistrate Judge Sarah Netburn of the U.S. District Court for the Southern District of New York recommended an award of $221.5 million to the insurers for amounts directly paid to their policyholders.
Plaintiffs in the instant case are insurers who paid claims for property ...