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Bad Faith in Reinsurance: Remedies for Violation of Duty of Utmost Good Faith, Coverage of Extracontractual Losses

A live 90-minute CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Thursday, December 19, 2024

1:00pm-2:30pm EST, 10:00am-11:30am PST

Early Registration Discount Deadline, Friday, November 22, 2024

or call 1-800-926-7926
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This CLE webinar will discuss bad faith claims and other damages in the context of reinsurance contracts. The program will look at two sides of the issue. The panel will address bad faith claims against reinsurers and then review whether reinsurance can or ever does cover extra-contractual liability of the cedant.

Description

A reinsurer can potentially be liable for extracontractual "bad faith" or even punitive damages when it unlawfully refuses to honor its reinsurance contract, although jurisdictions are split on the availability of common law or statutory bad faith claims. Bad faith is often alleged as a counterclaim after the reinsurer denies payment for claims it agreed to cover or seeks to rescind the contract for what a cedent contends are contrived reasons. What must be shown to prove bad faith or a similar degree of culpability is usually some level of evasiveness, obstructionism, shifting defenses, or excuses for nonpayment.

On the other side of the issue, a reinsurance contract normally will not cover extra-contractual payments, such as the cedants "bad faith" conduct. However questions arise in the reinsurance context for payments made to avoid risky litigation costs or other common sense voluntary payments designed to reduce overall liability.

Listen as this panel of distinguished insurance and reinsurance attorneys discusses bad faith and punitive damages claims in the reinsurance context.

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Outline

  1. Overview of reinsurance
    1. Types of contracts
    2. Duty of utmost good faith
    3. Follow the fortunes/follow the settlements
  2. Bad faith claims against reinsurers
  3. Reinsurance and payment of extra-contractual damages

Benefits

The panel will review these and other key issues:

  • What policy arguments are used to support bad faith against a reinsurer?
  • Can a reinsurer assert bad faith against the cedant?
  • If bad faith against a reinsurer is not recognized, what options does the cedant have?

Faculty

Hall, Robert
Robert M. Hall
Attorney
Hall Arbitrations

Mr. Hall is a certified ARIAS-U.S. arbitrator and umpire with extensive experience in the insurance and reinsurance...  |  Read More

Scott, Robert
Robert K. Scott
Attorney
Law Offices of Robert K. Scott

Mr. Scott specializes in all areas of bad faith insurance litigation and insurance related matters, including...  |  Read More

Attend on December 19

Early Discount (through 11/22/24)

Cannot Attend December 19?

Early Discount (through 11/22/24)

You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

To find out which recorded format will provide the best CLE option, select your state:

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