Panel Says Reinsurer Not Required to “Drop Down” Even If Cedent Did Confidential
1.1.2014
Confidential
An arbitration panel agreed with BatesCarey LLP's argument that the "follow the fortunes" doctrine did not require a reinsurer to drop down and reinsure any portion of the risk below $1 million, even when the cedent had been required to drop down and pay a loss incepting at less than $1 million. The panel also rejected the cedent's claim for more than $113,000 in interest.