STORY FROM: Reinsurance & Arbitration
5th Circuit Finds For Broker On Negligence, Fiduciary Duty Claims
April 8, 2008
NEW ORLEANS - Negligence and breach of fiduciary duty claims brought by a cedent against Aon Re in connection with rescission of a workers' compensation reinsurance treaty are time-barred under Texas law, the 5th Circuit U.S. Court of Appeals ruled March 13. TIG Insurance Co. v. Aon Re Inc., No. 05-11450 (5th Cir.).
The 5th Circuit affirmed that the claims accrued upon the treaty's inception date because the cedent, TIG Insurance Co., had notice at that time that information sent by Aon to the reinsurance market may have been incomplete.
TIG provided workers' compensation insurance to employers across the United ...