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CALVERT FIRE INS. CO. v. SPECIAL RISK COVERS, INC.

125 A.D.2d 243 (1986)

Calvert Fire Insurance Company et al., Plaintiffs, v. Special Risk Covers, Inc., et al., Defendants and Third-Party Plaintiffs-Respondents. North Atlantic Insurance Company, Limited, et al., Third-Party Defendants-Appellants, et al., Third-Party Defendant

Appellate Division of the Supreme Court of the State of New York, First Department.

December 18, 1986

Calvert and Cavalier (Calvert) hired Facultative to act as general managing agent, authorizing Facultative to issue insurance policies in the name of Calvert. Facultative arranged for reinsurance by third-party defendants (Reinsurers). The agreement provided for automatic reinsurance on certain policies issued by Facultative for Calvert, but, if the gross revenues of an insured company exceeded $25,000,000, the Reinsurers had to...

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