The University of New Hampshire Law Review
An Examination of Reinsurers’ Associations in Underlying Claims: The Iron Fist in the Velvet Glove?
[Excerpt] “The onslaught of environmental and asbestos claims coupled with the aftermath of the terrorist attacks of September 11, 2001, and their deleterious effects on the commercial property reinsurance industry, has left insurers and reinsurers reeling. This article submits that the iron fist in the velvet glove has replaced the once gentlemanly handshake that cemented contractual relations between cedent and reinsurer. The case law reveals that both cedent and reinsurer share the blame for this markedly adversarial shift. As the cases in this article demonstrate, cedents bear responsibility for shortcomings in their underwriting and claims handling, and reinsurers have often earnestly sought to avoid settlements even when clearly at fault.”
Louis Torch, An Examination of Reinsurers’ Associations in Underlying Claims: The Iron Fist in the Velvet Glove?, 3 Pierce L. Rev. 331 (2005), available at http://scholars.unh.edu/unh_lr/vol3/iss2/7