In an effort to simplify our discussion of the complex facts underlying the parties' dispute, we will also use "ACE” to refer to Capital Re Inc., the predecessor to ACE Capital Re Inc., and "ACE Overseas” to refer to KRE Reinsurance Ltd., the predecessor to ACE Capital Re Overseas Ltd. 2 . Defendants moved for dismissal on grounds other than the plaintiff's duty to arbitrate, but those issues are not before us on this interlocutory appeal. 3 . JCJ agreed to insure World Omni for 90% of its total residual lease losses greater than $423,665,329 and less than $598,115,759. World Omni purchased additional tiers of loss insurance from other carriers. 4 . In so ruling, the district court relied on Allstate Ins. Co. v. Adminstratia Asigurarilor De Stat, 948 F.Supp. 285, 307-09 (S.D.N.Y.1996) (<HOLDING>), and Klockner Stadler Hurter Ltd. v. Insurance
recognizing the paramount right of the insured  to seek or not to seek an insurers participation in a claim as the insured chooses  holding that reinsurer could be directly liable to an insured where the reinsurance agent was the ultimate consistent reimburser of losses of the insured and this status was conveyed to the insured holding that where an insured consistently deals directly with its insurers reinsurer  the reinsurer may become directly liable to the insured holding despite a reservation of rights that when the insurer provides a defense to its insured the insured has no right to interfere with the insurers control of the defense and a stipulated judgment between the insured and the injured claimant without the consent of the insurer is ineffective to impose liability upon the insurer holding that the insurers duty to undertake a reasonable investigation directly inures to the benefit of third persons injured by the insured