Editor, Mealey's Litigation Reports: Reinsurance and Insurance Insolvency

A policyholder’s failure to file a notice of claim in a liquidation estate is barred from collecting proceeds generated through its risk sharing agreement with the insolvent reinsurer, an Arkansas federal judge ruled Aug. 8 — Propak Logistics Inc. v. Foundation Insurance Co., No. 04-2178, W.D. Ark.).

Judge Robert T. Dawson of the Western District of Arkansas ruled that under the law of the insolvent reinsurer’s domcillary state, the failure of a potential creditor to submit a claim “is conclusive as to that creditor’s rights.”

More coverage available in the Sept. 7 issue of Mealey's Litigation Report:  Reinsurance.