FEDERAL JUDGE CONFIRMS REINSURANCE ARBITRATION AWARD
After arbitration between insurers Praetorian Insurance Co. (f/k/a Insurance Corporation of Hannover) and Clarendon Insurance Group Inc., and their reinsurer, American Constantine Insurance Co., the U.S. District Court for the Southern District of New York granted an unopposed petition to confirm the $7 million arbitration award. The award requires the reinsurer to place the amounts owed to the insurers either in escrow or in lines of credit for the insurers’ benefit, as collateral for the reinsurer’s share of reserves and incurred but not reported losses. Clarendon Am. Ins. Co. v. Am. Constantine Ins. Co., No. 10-2928 (USDC S.D.N.Y. June 8, 2010).
This post written by Michael Wolgin.
