Cedent May Proceed With Suit Against Reinsurance Brokers

NEW YORK - A New York appellate court has upheld a trial court's refusal to dismiss a lawsuit against a reinsurance broker, brought in the wake of an arbitration decision that left the plaintiff without reinsurance coverage. American Home Assurance Co. v. Nausch Hogan & Murray Inc., No. 02415 (N.Y. App. Div., 1st Dept.).

The New York Appellate Division, 1st Department, ruled that the claims are not barred by the arbitrators' finding that the cedent was involved in misrepresentations made by the brokers when the reinsurance was procured.

"Whether the duty of utmost good faith between the ceding insurers …