The Reinsurance Agreements contained broad, identical arbitration clauses, which required arbitration “n the event of any dispute or differences arising hereafter between the parties with reference to any transaction under or relating in any way to this Agreement.” Section 10.3 of the arbitration agreements (the “Fee and Expense Provision”) said that “ach party shall bear the expense of its own arbitrator. In life reinsurance parlance, the term “coinsurance” refers to a form of proportional reinsurance, and should not be confused with its direct insurance counterpart (which, in any event, has various meanings depending on the type of direct insurance involved). (“EMC”), one reinsuring business in force as of January 1, 1998, another reinsuring business written on or after Janu(the “Reinsurance Agreements”). (“ReliaStar”) entered into a two coinsurance agreements with EMC National Life Co. In December 1997 ReliaStar Life Insurance Co. Our critical analysis will be provided in a subsequent post. This post briefly discusses the majority and dissenting opinions. and related outside attorneys’ fees, and shall jointly and equally bear with the other party the expenses of the third arbitrator.” ReliaStar Life Ins. The Court held that an arbitration panel was authorized to award under the bad faith exception to the American Rule attorney and arbitrator fees to a ceding company in a case where the parties had agreed that “ach party shall bear the expense of its own arbitrator. On April 9, 2009 the United States Court of Appeals for the Second Circuit decided a case that may significantly expand the power of arbitrators to award attorney and arbitrator fees in cases involving reinsurance and other contracts.
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