Judge Says Policy was Not a Reinsurance Contract, Applies 'No Prejudice' Rule

NEW YORK - The member of a non-profit mutual insurance association may not avoid application of New York's "no prejudice" rule to a dispute over coverage for a $3.7 million plaintiff's verdict because the insurance contract was not, in essence, a reinsurance agreement, a New York federal judge has ruled. Weeks Marine, Inc. v. American Steamship Owners Mutual Protection & Indemnity Association Inc., No. 08-9878 (S.D. N.Y.).

In granting the insurance association's motion for summary judgment, Judge Naomi Reice Buchwald of the U.S. District Court for the Southern District of New York noted that the certificate of entry did not …