Reinsurance

JORDEN BURT has been known for over 20 years for its knowledge of the insurance and financial markets, and for its ability to apply that knowledge to obtain favorable results for its clients in high risk litigation and arbitration settings, as well as in the structuring of innovative products. The firm has applied that same knowledge and experience for its clients in their reinsurance dealings. JORDEN BURT provides a wide range of services to its clients relating to reinsurance. The breadth and depth of our experience with many kinds of insurance and other financial-related products provides us with unique experience and expertise, allowing us to serve our clients efficiently and effectively. Our reinsurance experience extends to reinsurance dispute resolution, reinsurance transactions, reinsurance counseling and regulatory issues.

Jorden Burt publishes Reinsurance Focus, an Internet blog providing updates on a broad range of reinsurance matters, including significant reinsurance and alternative risk transfer transactions, reinsurance legislation and regulations, trade associations, educational programs, and scholarly articles about reinsurance. Reinsurance Focus also provides summaries of selected court opinions in non-reinsurance cases that involve important aspects of the arbitration process.

Reinsurance Dispute Resolution Experience

JORDEN BURT attorneys have years of experience representing industry clients in the resolution of reinsurance disputes, including arbitrations, litigation, mediation and settlements. The depth of our knowledge regarding insurance company operations, accounting principles, and insurance industry products provides a unique and informed perspective, allowing us to more effectively address the kinds of business issues that become central to such disputes.

JORDEN BURT's reinsurance dispute resolution experience encompasses both life/health and property/casualty business, domestically and in London, and many of the different participants in the reinsurance markets. A few examples of our experience:

• Life/Health Reinsurance - JORDEN BURT represented a participant in hundreds of reinsurance treaties in the London Personal Accident reinsurance market, involving a series of arbitrations in the UK, and the defense of a major US arbitration in New York City involving claims exceeding $100 million. Our representation included advising on a strategic plan for managing and defending multiple arbitrations and lawsuits in this market, and representing the client in the U.S. arbitration and a related lawsuit

• Property/Casualty - JORDEN BURT has represented parties in the reinsurance of major catastrophic losses caused by hurricanes in the Southeastern United States.

• Reinsurance Intermediaries - The Firm has represented a reinsurance intermediary in litigation concerning the placement of reinsurance coverage for workers' compensation risks, and has represented companies asserting claims against reinsurance brokers.

• Reinsurance Fraud - The Firm has provided counseling, litigation and arbitration services with respect to fraud in reinsurance programs involving D&O and E&O coverages.

• Lloyd's of London - JORDEN BURT represented the Society of Lloyd's in litigation in United States federal courts, in which the claimants unsuccessfully sought to have the litigation managed by the Judicial Panel on Multidistrict Litigation.

• Producer Owned Reinsurance Companies - We are very familiar with the structure and operation of producer owned reinsurance companies and other "captive" reinsurers, and have litigated various issues relating to such entities, including issues arising as a result of the bankruptcy of the owner of such entities. Some of these reinsurers have been domiciled in non-United States jurisdictions, such as the Turks and Caicos.

• Reinsurance Claims - The Firm has represented cedents seeking to recover on reinsurance claims and has represented a reinsurer against attempts by insureds to assert claims directly against the reinsurer.

We have been involved in a broad array of reinsurance disputes, having prosecuted and defended claims ranging from the validity of a single loss under a facultative certificate, to fraud and misrepresentation claims involving the potential rescission of a complex array of reinsurance agreements covering an entire book of business, to the allocation of bad faith responsibility between a cedent and its reinsurer.

Our sophisticated litigation practice for insurance companies greatly contributes to our capabilities in the reinsurance area, enabling JORDEN BURT to provide high quality services on a cost-effective basis. For example:

• JORDEN BURT has broad experience in litigating and arbitrating issues with respect to insurance company products, operations, actuarial issues, accounting and the acquisition of entire books of business.

• We have experience as counsel of record in over 300 class actions, which routinely present complex procedural, insurance, and evidentiary issues.

• We have had experience in cases involving hundreds of thousands or even millions of pages of documents and electronic data, for which we have developed a range of in-house and vendor assisted computerized litigation support. Each matter is unique, and requires a customized approach in order to provide high quality, cost-effective services to our clients.

• Our trial lawyers include experts on the subject of electronic discovery. Several of our attorneys have written on e-discovery issues, and have moderated and lectured at continuing legal education programs addressing e-discovery issues.

James F. Jorden - jfj@jordenusa.com or (202)965-8135

Roland C. Goss - rcg@jordenusa.com or (202)965-8148

Reinsurance Transactional and Counseling Experience

JORDEN BURT attorneys have extensive experience in reinsurance transactional matters. The depth of our knowledge with respect to insurance company operations, actuarial and accounting principles, and insurance products, provide us with a unique and informed perspective, allowing us to more effectively address contractual and regulatory issues for our clients. Our extensive representation of clients in litigation and arbitrations involving many of the kinds of issues that arise on the transactional side of our practice adds a valuable perspective that enables us to provide exceptional transactional counseling.

JORDEN BURT's reinsurance transactional experience includes engagements in the following areas:

• Counseling - Our lawyers provide counseling with respect to loss portfolio transfers, sales of reinsurance books of business, purchases and sales of reinsurance underwriting management companies, jumbo reinsurance issues, termination of reinsurance relationships, relationships with brokers and the formation and operation of reinsurance auditing and run-off companies.

• Contract Structuring, Drafting, Negotiation - Our lawyers have worked with nearly every type of reinsurance agreement, including quota share, excess of loss, and facultative agreements, as well as workers' compensation and occupational accident treaties. We have similarly counseled clients in connection with agreements for retrocessional, property surplus share, and loss portfolio transfer arrangements. In the life and health reinsurance area, our lawyers regularly work with clients on the structuring and drafting of complex reinsurance arrangements. We have also assisted in contract structuring and commutations in specialized areas such as financial guaranty risks and weather cat risks. Our work with clients on matters involving intermediaries and other industry participants, such as managing general agency, reinsurance intermediary, and general underwriter agreements, rounds out our contractual counseling expertise.

• Assumption Reinsurance - JORDEN BURT lawyers have handled numerous assumption transactions, including, for example, drafting an agreement to position a company in advance of its sale. We have also drafted and obtained New York Insurance Department approval for an alien surplus lines insurer that transferred its business to a licensed insurer through assumption reinsurance to release its NAIC Surplus Lines Trust Fund.

• Run-offs and Commutations - Our lawyers have represented a number of reinsurers in run-off and have helped design programs to commute or otherwise minimize exposure to cedents while protecting retrocession recoverables in a number of different lines.

• Reinsurance Company Insolvencies - JORDEN BURT lawyers have counseled both reinsurers and liquidators with respect to their rights and obligations in the insolvency and pre-insolvency contexts.

Representative examples of the Firm's work includes:

• Counseling a reinsurer and its affiliates in complex cessions and retrocessions of life product risks involving entities operating in the United States, Asia, Europe, and Bermuda.

• Assisting in a loss portfolio transfer of medical malpractice risks from a group of medical facilities and providers to a major P&C insurer and reinsurer.

• Closing a commutation of a reinsurance treaty for a P&C insurer that sought to terminate its treaty with a large international reinsurer that had been downgraded by A.M. Best.

• Representing ceding and assuming companies in the structuring and documentation of complex P&C and life and health reinsurance treaties of various types, including consideration of risk transfer and related regulatory compliance issues.

We also routinely counsel insurance and reinsurance clients on regulatory matters and represent them before state insurance departments. We have been retained as special counsel to state insurance departments on significant matters. In 2005, a Department of Insurance retained Jorden Burt in connection with the Department's consideration of a controversial acquisition involving its largest domestic medical malpractice carrier.

JORDEN BURT maintains a high profile within the NAIC, and our lawyers actively follow, among other matters, the activities of the NAIC's Reinsurance Task Force. The Firm's lawyers have training and experience with Generally Accepted Accounting Principles and Regulatory Accounting Principles. They regularly participate in activities of reinsurance trade associations, such as the Reinsurance Association of America, and in ARIAS. Our lawyers have worked at state insurance departments, major insurance companies, and a trade association, and served on the Boards of Directors of insurance companies.

Our extensive experience in the insurance/reinsurance industry, the skills of our attorneys and our involvement in the industry provide a unique and well-informed perspective, which translates to higher quality services to our clients.

For more information on our Reinsurance Transactional Group, contact:

Anthony N. Cicchetti - anc@jordenusa.com or (860)392-5040

Steven Kass - sk@jordenusa.com or (305) 347-6899