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Stuart Cotton, a partner at Mound Cotton Wollan & Greengrass, writes that it was not very long ago that the law in the First and Second Circuits was clear on the effect of a "follow the fortunes" provision on a cedent's allocation of a settlement: absent a showing of bad faith, the reinsurer would be unable to avoid its cedent's allocation. It now appears that, at least in New York, whether "follow the fortunes" will tend to trump reinsurers' objections to cedents' allocation decisions is an open issue.
October 08, 2008 at 12:00 AM
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