Bluewater Insurance Ltd. v. Balzano

We granted certiorari to review the decision of the court of appeals in Balzano v. Bluewater Ins. Ltd,., 801 P.2d 1 (Colo.App. 1990). The court of appeals affirmed summary judgment and held that the relevant Colorado statutes require a reinsurer to pay in full the policy liabilities of an insolvent ceding insurer without diminution, thus abrogating any right of the reinsurer to offset unpaid premiums from the reinsurance proceeds due. We affirm.

I

To properly approach this case, a basic understanding of the business of reinsurance is required. Before introducing the parties and presenting the…