Bellefonte Twenty-Five Years Later: Developments in the Law of Reinsurers’ Liability for Expenses in Excess of Certificate Limits
Amy S. Kline and Amy L. Piccola, a partner and associate, respectively, in Saul Ewing’s Insurance Practice, joined James D. Scrimgeour, executive counsel in the Claim Legal Group at Travelers Companies, Inc. to write this story about the controversial Bellefonte Rule. This rule allows reinsurers to cap their losses under facultative certificates at the stated amount on the face of a certificate. The story reviews the case that established this rule and subsequent rulings as well as discusses recent decisions that address the law of reinsurers’ liability for expenses in excess of certificate limits. Key takeaways are also included.
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