Jonathan Kline

Jonathan Kline is Counsel in the Litigation Practice of Smith, Gambrell & Russell, LLP.

Mr. Kline practices general commercial litigation, devoting a substantial portion of his practice to representing insurers, reinsurers, insurance brokers, and life settlement providers in connection with business disputes. He also represents insurance industry clients in transactional and regulatory matters.

In arbitrations and litigation, Mr. Kline has represented insurers in actions against agents, a captive insurer in disputes over indemnity and security, and a London-based insurance broker in business tort litigation involving its placement of insurance to support film finance. He represents reinsurers and cedents in reinsurance disputes, and represents insurers in insurance coverage litigation. Mr. Kline represents parties in litigation involving life settlement transactions. He has also represented brokers with respect to enforcement proceedings brought by state insurance regulators. Mr. Kline also has experience in estate fiduciary litigation, in real estate disputes, and in business disputes.

Mr. Kline has also represented insurance holding companies in forming and acquiring insurance companies. He also represents insurers and reinsurers in alternative risk transfer arrangements and in drafting agreements with agents, brokers, third party administrators and other vendors. In addition, Mr. Kline represents lenders, brokers and providers in transactions involving the life settlements. Mr. Kline has drafted reinsurance contracts, insurance policies, administration agreements, general agency agreements and third party administration agreements.

Mr. Kline has prepared insurance licensing applications, applications for acquisition of control, holding company act filings, form filings, and requests for opinions of insurance department counsel, and he has interacted with state insurance departments concerning those filings. Mr. Kline advises brokers and agents on obtaining and maintaining applications for insurance licenses. Mr. Kline has performed internal audits for insurers faced with potential enforcement proceedings.

Mr. Kline is a member of the Connecticut State Bar, the New York State Bar, the New York City Bar Association and ARIAS. He served on the Executive Committee of the Connecticut Bar Association Young Lawyers Section from 1995 to 1997, where he co-chaired the Committee on Ethics and Professional Conduct and the Federal Practice Committee.

Mr. Kline received his A.B. degree in History from Brown University in 1989 and earned his J.D. from the University of Connecticut School of Law in 1994. While at the University of Connecticut School of Law, Mr. Kline was an Executive Editor of the Connecticut Journal of International Law and received the J. Rene Frechette Research Fellowship.

Recent Matters of Note:

2011
Litigation Against Rogue Agent: Represent surplus lines insurer in action against insurance producer that failed to remit premium in violation of the producer agreement and applicable laws.

2010-11
Life Settlement Litigation: Represent lender parties that foreclosed on collateral in litigation brought by life insurer alleging that life insurance policies were procured by fraud.

Title Insurer - Application for Change In Control: Representation of investors in preparing application for change in control of a Title Insurer.

Property/Casualty Insurer - Business Agreements: Representation of property/ casualty insurer with respect to two Program Management Agreements, loan agreements, multiple fronting agreements, and hundreds of producer agreements.

2009-10
Title Insurer — New York Expansion Application (former firm): Representation of national title insurer in its preparation and filing of a UCAA Expansion Application in New York. Interacted with the New York Insurance Department and shepherded the application through the licensing process.

2009
Alternative Risk Transfer — Prepare Transaction Documents (former firm): Represented reinsurer in negotiation and documentation of alternative risk transfer transaction involving reinsurance agreements, retrocessional agreements, general agency agreements, insurance policies and administration agreements.

Catastrophe Insurer — Arbitration Stayed(former firm): Representation, through local counsel, of a provider of catastrophe insurance to businesses, in staying an arbitration sought by a former employee seeking severance and $5 million in damages stemming from his termination. The former employee argued that the timing of his termination caused his equity interest under an operating agreement to decrease in value. While disputes under his employment agreement must be arbitrated in Colorado, on our motion to stay, the court agreed with our position that disputes under the operating agreement must be litigated in New York, and stayed the arbitration of that issue.

2008
A&H Insurer Formation and Licensing (former firm): Represented investors in holding company in the formation of a New York insurer to write Accident and Health business. Prepared the company’s charter and secured approval of the charter from the New York Insurance Department. Following approval of the charter, we prepared the licensing application and interacted with the Insurance Department to secure approval of the application as well as the operational documents, such as a management agreement and a tax allocation agreement.

2007
Bermuda Segregated Account Captive Manager — Shareholder Dispute (former firm): Representation of a Bermuda based segregated account captive manager in arbitration against preferred shareholder arising from the preferred shareholder’s failure to honor its obligations under the shareholder agreement to pay sums due to fund the segregated account. The shareholder raised issues regarding the accounting of losses with respect to the underlying alternative risk transfer insurance program. After obtaining an interim award requiring the shareholder to post security, the matter was settled.

Surplus Lines Insurer - Sub-Prime Auto Loan Coverage Dispute (former firm): Representation of a surplus lines insurer in a dispute with a former general agent over the agent’s handling of a financial product. The product provided limited insurance coverage for banks and credit unions extending sub-prime automobile loans throughout the United States. Questions arose over the placement of certain coverage, the terms of the coverage and the actions of the agent which required the insurer to take positions it would not otherwise have taken. The insurer sought compensation from the agent, which we achieved during a week long arbitral hearing in Virginia.