The Impact of the Air Transportation and System Stabilization Act on the Resolution of Reinsurance Disputes Relating to the World Trade Center Terrorist Attacks.

Mondaq Business Briefing, June, 2003

Introduction

The tragic events of September 11th brought to the forefront a host of challenging reinsurance issues. Although many of the issues are typical of problems inherent in the field, the extent of the losses from 9/11 magnified the need for their prompt resolution. In this paper, I will explore the effect on the prompt resolution of reinsurance claims that September 11th and Congress's legislative response to this tragedy has had. As discussed below, the resolution of reinsurance disputes by means of the traditional method of arbitration has been forsaken by some cedents in favor of litigation in the federal courts. These cedents have sought to use an ambiguously worded jurisdictional provision found in the Air Transportation Safety and System Stabilization...