FOLLOW-THE-FORTUNES DOCTRINE

follow-the-fortunes doctrine.Insurance. The principle that a reinsurer must reimburse the

reinsured for its payment of settled claims as long as the reinsured’s payments were reasonable and

in good faith. • This rule prevents a reinsurer from second-guessing a reinsured’s good-faith

decision to pay a claim arguably not covered under the original insurance policy. — Often

shortened to follow the fortunes. [Cases: Insurance 3615.][Blacks Law 8th]