foundations of the right of action of the insured against reinsurer (with emphasis on the united states courts' decisions)

insurer companies frequently reinsure part of their risks before reinsurers. the question of right of action of the insured against the reinsurer then arises. the common response to this question is negative because of the principle of the privacy of contracts. however, courts, particularly in the united states, have recognized this direct action on various grounds, especially in case of insolvency of the ceding company. this article examines the contractual and extra-contractual bases of this direct action in american and iranian law.