Insured May Not Directly Sue Frontier's Reinsurer, Judge Reiterates

NEW YORK - An insured may not directly sue the reinsurer of Frontier Insurance Co. to collect on a judgment issued against Frontier because the reinsurance agreement does not contain a cut-through agreement, a New York federal judge reiterated in denying the insured's motion for reconsideration. Callon Petroleum Co. v. National Indemnity Co., et al., No. 06-573 (E.D. N.Y.).

On Oct. 11, Judge Joanna Seybert of the U.S. District Court for the Eastern District of New York denied Callon Petroleum Co.'s motion to reconsider her December 2010 ruling that the reinsurance agreement's "no-third-party-rights" provision barred Callon's "cut-through" action against National …