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Bailout for storm-tossed states

Article Abstract:

The passage of a disaster reinsurance bill in a House banking subcommittee promises to alleviate the plight of stormed-battered states. The legislation marks the first time that the federal government will engage in the disaster insurance business. Under the proposal, the Dept of the Treasury could provide voluntary, annual contracts to state-managed catastrophe funds for losses that exceed the state's financial capabilities to pay insurance claims on disasters that occur an average of once every 100 years. The legislation drew mixed reactions from trade and consumer groups.

Other Justice, Public Order, and Safety Activities, INSURANCE CARRIERS, Reinsurance, Reinsurance Carriers, Disaster Insurance Programs, Property and casualty insurance, Disaster insurance

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Communications under wraps

Article Abstract:

Numerous court cases underscore the legal controversy surrounding privileged communications between reinsurers and cedants. The courts have, at various times, invoked laws - most significantly Rule 26 of the Federal Rules of Civil Procedure - to deny or affirm the right of policyholders or third party claimants to obtain access to these communications. Reinsurers and cedants can protect themselves from this ambiguity by demonstrating that communications are privileged under attorney work-product or attorney-client theories.

Fire, marine, and casualty insurance, Analysis, Confidential communications, Third parties (Law), Disclosure (Insurance)

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