A number of insurance companies have recently entered into
reinsurance agreements with National Indemnity Company
("NICO"), a subsidiary of Berkshire Hathaway Inc. When
this occurs – and the arrangements do not require the consent
of policyholders – the policyholders unexpectedly find
themselves involved with NICO and/or its "affiliated claims
adjuster," Resolute Management, Inc. ("Resolute").
But, what happens when a policyholder disagrees with NICO's
and/or Resolute's approach to adjusting, defending, or
resolving claims? Are NICO and Resolute "untouchable"?
Just recently, a New York appellate court addressed these
questions, finding that NICO and Resolute could escape liability in
such instances. In a recent
Client Alert, members of Reed Smith's Global Insurance
Recovery Group take a closer look at that recent decision,
OneBeacon American Insurance Co. v. Colgate-Palmolive Co.,
and explain why "all hope is not lost."
