A number of insurance companies have recently entered into reinsurance agreements with National Indemnity Company (“NICO”), a subsidiary of Berkshire Hathaway Inc. When this occurs – and the arrangements do not require the consent of policyholders – the policyholders unexpectedly find themselves involved with NICO and/or its “affiliated claims adjuster,” Resolute Management, Inc. (“Resolute”). But, what happens when a policyholder disagrees with NICO’s and/or Resolute’s approach to adjusting, defending, or resolving claims? Are NICO and Resolute “untouchable”? Just recently, a New York appellate court addressed these questions, finding that NICO and Resolute could escape liability in such instances. In a recent Client Alert, members of Reed Smith’s Global Insurance Recovery Group take a closer look at that recent decision, OneBeacon American Insurance Co. v. Colgate-Palmolive Co., and explain why “all hope is not lost.”