Panel rules that only one retention required under excess of loss treaty for dozens of current and future lead paint claims spanning multiple policies.

On November 6, 2012 a reinsurance arbitration panel awarded our client recovery, on summary judgment, of outstanding balances due on over 20 lead paint claims and required the excess of loss reinsurer to follow our client’s single occurrence presentation for current and future claims when the exposure to lead paint spans more than one policy. Our client has approximately 50 open lead paint claims with this reinsurer. The minor claimant’s exposure to lead paint usually spanned multiple policies written by our client and the reinsurer contended that our client was required to take a separate retention under the treaty for each policy. Although the panel only resolved disputes over lead paint claims between our client and one of its excess of loss reinsurers, the same dispute over similar policy wording exists for many companies with New York lead paint claims.