Inadequate limits of coverage: protecting the insured while avoiding excess exposure
Article Abstract:
Often accidental damage to several people will result in claims exceeding liability levels, and careful distribution of scarce coverage resources may be an important implied duty of the insurer to protect excess claims against the company as well as the insured. The insurer should first settle those claims which are most likely to result in liability in excess of the policy. The insurer should only resort to interpleader in cases of clear and uncontested liability but should never surrender policy limits without obtaining liability releases for the insured.
Publication Name: Federation of Insurance & Corporate Counsel Quarterly
Subject: Law
ISSN: 0887-0942
Year: 1992
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Reinsurers may face danger in direct involvement in cedant's underlying case
Article Abstract:
By becoming involved in any of several stages in the negotiation of the settlement of a cedant's underlying case a reinsurer may become directly involved and incur extra-contractual liability. There is no formal answer to the limits to which a reinsurer should participate, but they should be wary of direct claims-handling or settlement decisions unless their contract specifies this right. The reinsurer is best protected by explicitly stating in any involvement exactly what the contract requires and reserving all other rights.
Publication Name: Federation of Insurance & Corporate Counsel Quarterly
Subject: Law
ISSN: 0887-0942
Year: 1992
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Recent developments in English law relating to insurance/reinsurer insolvency
Article Abstract:
Possible legal reforms of insurance company insolvency may be needed in the UK, judging from recent trends in the industry. Most insolvent insurers do not liquidate, but use a scheme of arrangement that more closely monitors debts and liabilities and offers al parties more protection. Unfortunately, laws enacted after the last wave of insurance company failures address liquidation, rather than arrangement schemes. Such schemes, and the issue of reinsurance are discussed.
Publication Name: Federation of Insurance & Corporate Counsel Quarterly
Subject: Law
ISSN: 0887-0942
Year: 1995
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