Michaels, Schulwolf Salerno attorneys have represented various ceding companies and reinsurers throughout their careers, and have litigated, arbitrated and mediated reinsurance disputes in the United States, London, and Bermuda. We have handled reinsurance claims in connection with directors and officers insurance, per person workers’ compensation programs, commercial general liability insurance, and claims-made catastrophe liability policies. We have also interpreted complex transactional documents and analyzed their impact on payment obligations under multiple reinsurance agreements. The reinsurance matters we have handled recently have ranged in size from several hundred thousand dollars to in excess of $5 million.
We have negotiated a number of favorable settlements for our reinsurance clients. For example, we recently represented a ceding company in a dispute concerning the allocation of an underlying class action securities settlement between two consecutive, first layer excess directors’ and officers’ liability policies - the reinsurer ended up paying the majority of the disputed cession. We have also recently handled an arbitration in which we successfully argued that the reinsurer was barred from challenging nearly 200 reinsured claims. In another matter, we analyzed several thousand pages of complex and intertwined transactional documents in order to evaluate the potential for recovery of up to $1.4 million owed to our client as the result of certain state guaranty fund payments that the client had made for the benefit of a reinsurer. Other representative matters our attorneys have handled include representing a New Hampshire association captive in a $2 million claim against its reinsurer where the reinsurer’s agent had fraudulently manipulated key financial data, and the representation of the liquidator of an Australian consumer auto company in a $3 million claim against a large domestic reinsurer.
Our attorneys also have extensive experience in representing excess of loss reinsurers in auditing medical and hospital professional liability direct insurer claims.