The Follow-the-Fortunes Doctrine

This article explores the boundaries of the follow-the-fortunes doctrine. Does it have any limits? Does a cedent have carte blanche to impose its claims decisions and allocations of claims settlements upon a reinsurer without question? Do the answers to the questions depend upon whether the dispute is before a court or an arbitration panel?

28 minute read February 27, 2009 at 07:12 AM
By
John M. Nonna And Victoria L. Melcher
The Follow-the-Fortunes Doctrine

One of the most hallowed principles of reinsurance is the follow-the-fortunes doctrine. With its counterpart, the duty of utmost good faith, the follow-the-fortunes doctrine is a linchpin of the reinsurance industry and the legal rules applied to reinsurance disputes.

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