AIU Insurance v. TIG Insurance

OPINION & ORDER

SIDNEY H. STEIN, District Judge.

This action brings this Court into the field of reinsurance, where, according to the New York Court of Appeals, “differences have often been settled by handshakes and umpires, and pertinent precedents ... are few in number.” Sumitomo Marine & Fire Ins. Co., Ltd.-U.S. Branch v. Cologne Reinsurance Co. of Am., 75 N.Y.2d 295, 298, 552 N.Y.S.2d 891, 552 N.E.2d 139, 140 (1990). In the late 1970s and early 1980s, plaintiff AIU Insurance Company purchased nine certificates of facultative reinsurance (“CFRs” or “certificates”) — that is, reinsurance…