Loss reserves are discussed and published in the media, and data freely exchanged until an insurance company is asked for it in a lawsuit. Once the lawsuit is filed, insurers pretend as if this information is something extraordinarily private and only told to a priest in a confessional. I suggest that insurers and their counsel are like Pinocchio, with long noses getting longer when making such absurd arguments preventing disclosure.
Continue Reading Loss Reserve Information For Property Insurers Should Be Disclosed In Litigation—Reserve Information In a First Party Case Is Relevant and Not a Secret

In the Olin Corp. case,1 one of Olin Corporation’s (“Olin”) three carriers admitted only a small amount of liability and the other two delayed making a coverage decision. So, Olin filed suit in federal court against all three, seeking entry of a declaratory judgment that it was entitled to coverage.

Continue Reading Reinsurance Discoverable – Dynamite Discovery Decisions, Part 5

Insurance coverage litigation is a grueling race and winners are usually measured by their stamina and endurance through the discovery process. Courts are reluctant to get involved in discovery disputes, but they are intolerant to parties who try to smokescreen the truth. Reinsurance and underwriting documents are typical battlefields in the fight for information. Insurers closely guard this information, but courts do not protect reinsurance and underwriting information if fraud and misrepresentation defenses are at issue in the coverage litigation.

Continue Reading Keeping Them Honest About Reinsurance and Reserves – Understanding Business Interruption Claims

Most of you are familiar with the concept of reserves. How many of you are familiar with the role of reserves in a bad faith case? Is this type of information even discoverable? Although it might not sound terribly significant, it is an important factor that should be evaluated and which many attorneys may overlook.

Continue Reading Reserves Are Important in Insurance Coverage and Bad Faith Claim Disputes