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.]
