STORY FROM: Reinsurance & Arbitration
Judge Orders London Reinsurers to Post $7.56M in Security
May 28, 2008
NEW YORK - In a $12 million asbestos-related reinsurance case, a New York state judge ordered certain London Market reinsurers to post 7.56 million in pre-hearing security. AIU Insurance Co. v. Certain Underwriters at Lloyd's London, et al., No. 07602924 (N.Y. Sup., N.Y. Co.).
In a May 5 order, Judge Richard Lowe of the New York County Supreme Court ruled that the reinsurers are subject to a New York law that requires foreign insurers to post pre-hearing security.
In the pending action, AIU Insurance Co. seeks $12 million from the reinsurers under three facultative reinsurance agreements, plus sums that ...