New York Court of Appeals Addresses Interpretation of Reinsurance Contract

The New York Court of Appeals today heard oral arguments in Excess Insurance Co. v. Factory Mut. Ins. Co., which involved the interpretation of a reinsurance contract. The Appellate Division, First Department held that the reinsurance policy language — which provided that the reinsurers agreed to follow the settlements and bear their proportion of expenses — did not supercede the coverage limit in the reinsurance policy. We’ll see in a month what the Court thinks . . . .

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