Reinsurance Reserves Information is Protected, Federal Judge Rules

CHICAGO - Certain communications between an insurer and its counsel concerning reinsurance reserves fall within the attorney-client privilege and work-product protection, an Illinois federal magistrate judge has ruled in a dispute over insurance claims brought by the ARTRA Asbestos Trust. ARTRA Asbestos Trust v. Transport Insurance Co., No. 09-458 (N.D. Ill.).

On Sept. 18, Magistrate Judge Geraldine S. Brown of the U.S. District Court for the Northern District of Illinois ruled that the insurer did not waive the attorney-client privilege by sharing these communications with its reinsurers because a common interest existed between the insurer and its reinsurers regarding the …