Insurer Must Reimburse Reinsurer for Defense, Indemnity of Underlying Personal Injury Claims

NEW YORK — A New York federal judge has ruled that Philadelphia Indemnity Insurance Co. (PIIC) must reimburse a reinsurer for sums it paid to defend and indemnify PIIC’s insured in an underlying personal injury action, ruling that the reinsurer had standing to bring the subrogation action under the reinsurance policy’s cut-through endorsement.

In a Nov. 23 order, Judge Lewis Liman of the U.S. District Court for the Southern District of New York found PIIC is liable for the underlying claims because the incident was covered by its policy and PIIC was not prejudiced by any late notice of the …