Cut Through Claims Against Reinsurers – Two Losses for Policyholders
Reinsurance companies frequently sit "behind" insolvent primary insurers. When the primary carrier fails, some policyholders seek to sue the reinsurer directly in these ‘"cut through" suits. Courts usually but not always reject such "cut through" efforts. A brief, recent article by Robert DiUbaldo summarizes two recent federal district court opinions which rejected cut through claims.