What’s New: In Brief (January 09, 2008)

Clive R. Tobin will retire from his post as chief executive of XL Capital Ltd.’s insurance operations, and David B. Duclos will succeed him.
Tobin will continue with XL as vice chairman of XL Insurance (Bermuda) Ltd., where he will concentrate on assisting with strategic opportunities in emerging markets, an XL release says.
Duclos is currently the chief operating officer of the company’s insurance operations.

Reinsurers do not consider a cedent’s declaratory judgement expenses to fall under the rubric of a “loss adjustment expense” because the expenses are so distinctly different in character from what is intended by the word “adjusting,” a Guy Carpenter report says.
In the broadest sense, declaratory judgement expenses are the costs of legal activities (legal fees, court fees, filing fees, etc.) to determine coverage, the report explains.
Reinsurers argue this type of action can be extremely costly, occur unpredictably and are sometimes pursued at the cedent’s sole discretion, the report notes.
“Costs associated with discharging duties to the insured cannot logically include the costs of resisting the insured’s demand for coverage,” Guy Carp researchers wrote.