Wednesday, July 6, 2011

Teleconference - The Silverstein Properties Trial and Contract Certainty

This post was prepared by Richard Mason of Cozen O'Connor, Chair-elect of ESLR.  When the World Trade Center collapsed, coverage for property insurance had been bound.  But the policy had not been issued.  Consequently, a massive lawsuit arose concerning the terms and conditions applicable to the claim of the building lessee, Silverstein Properties.  Ultimately, the insurers established that the parties had agreed to terms that, as interpreted by the court, meant the attack was a single “occurrence,” and thus one policy limit, and not two, applied.

On September 15, 2011, The TIPS Excess, Surplus Lines & Reinsurance Committee will present a teleconference entitled: "The Silverstein Properties Trial and Contract Certainty in the Aftermath of 9/11." This teleconference will present an insiders' description by trial lawyers who litigated the coverage cases arising from September 11th.  Panelist Tom McKay of Cozen O'Connor represented Federal Insurance Company in the Silverstein Properties trial.  Nancy Sher-Cohen represented the lender, seeking coverage.  Each will share the war stories and lessons learned from this monumental litigation.

In the aftermath of September 11th, insurers, regulators, and brokers have implemented practices and requirements aimed at preventing situations in which, when disaster strikes, the insurance policy has not yet been issued.  Such measures, referred to as “contract certainty” procedures, seek to require that insurance and reinsurance contracts be issued at or near the time that coverage is bound.  Still, market practice remains imperfect, as the industry struggles to balance policyholders’ need for prompt commitments to coverage against the mutual need for contract certainty.  Panelist Kevin Lazarus, a solicitor with Lloyd's Legal and Compliance, specializing in contract certainty, and Roger Fell, a broker with Marsh USA, will advise the audience regarding how contract certainty is being regulated and -- equally importantly -- what the current practices (good and bad) are in today's insurance and reinsurance marketplace.

To Register for this teleconference, click hereTo register at a 20% discount package deal for all teleconferences, click hereVisit the Pages section of this blog to view information about all the teleconferences or go to the TIPS Disaster Initiative page for information about all the upcoming programs.

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