Follow the Settlements and Ex Gratia Payments

__[Mr. Hall is a former law firm partner, a former insurance and reinsurance executive and acts as an insurance consultant and expert witness as well as an arbitrator and mediator of insurance and reinsurance disputes. The views expressed in this article are those of the author and do not reflect the views of his clients. Copyright 2010 by the author. The author's background and other articles may be found at his website: robertmhall.com]._

Introduction

The follow the settlements doctrine is that reinsurers should not second guess the settlements of their cedents which are reasonably within the coverage provided to policyholders. …