Abandoning Bellefonte, 2nd Circuit Affirms Defense Costs Follow-Form Ruling

Mealey's (December 30, 2021, 1:49 PM EST) -- NEW YORK — The follow-form clauses in disputed facultative reinsurance certificates require the reinsurer to pay its proportionate share of an insurer’s defense costs in excess of liability limits, a Second Circuit U.S. Court of Appeals panel affirmed Dec. 28, saying a New York Court of Appeals ruling rendered two previous cases that are inconsistent with standard rules of contract interpretation “no longer valid law in our circuit.”...

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