Mealey's Reinsurance

  • December 7, 2017

    Justice Declines To Compel Arbitration Under Reinsurance Participation Agreement

    GOSHEN, N.Y. — A New York justice on Dec. 5 refused to compel arbitration of a dispute pursuant to a provision under a reinsurance participation agreement (RPA) because the provision is invalid under Nebraska law (Milmar Food Group II, LLC, et al. v. Applied Underwriters Inc., et al., No. EF003101-2017, N.Y. Sup., Orange Co., 2017 N.Y. Misc. LEXIS 4634).

  • December 7, 2017

    Magistrate Judge Extends Discovery In Reinsurance Case Over Promissory Note

    LINCOLN, Neb. — A Nebraska federal magistrate judge on Nov. 30 extended the discovery deadline by one month in a dispute over whether a reinsurer owes an insured $152,616.35 under a promissory note executed pursuant to a reinsurance participation agreement (RPA) (Applied Underwriters Inc. v. Top’s Personnel Inc., No. 15-90, D. Neb.).

  • December 6, 2017

    Insurer’s Receiver Asserts Negligence Claim Against Actuary Company, Officer

    OKLAHOMA CITY — An insolvent insurer’s receiver filed a second amended complaint on Nov. 27 in an Oklahoma federal court, asserting professional negligence against an actuary services provider and its chief executive officer for their alleged failure to properly investigate and accurately report on the financial standing and reinsurance contracts of the insurer (Oklahoma ex rel., John D. Doak v. CTK Actuarial Services Inc., No. 17-371, W.D. Okla.).

  • December 6, 2017

    Insurer Says Insured Does Not Rely On Reinsurance Agreements In $26M Case

    WASHINGTON, D.C. — A financial services company abandoned reliance on reinsurance agreements in its lawsuit seeking to recover a $26 million arbitration award directly from reinsurers, a credit insurer argues in a Dec. 1 reply brief to a District of Columbia federal court, seeking dismissal of the breach of contract lawsuit (Vantage Commodities Financial Services I, LLC v. Assured Risk Transfer PCC, LCC, et al., No. 17-01451, D. D.C.).

  • December 1, 2017

    Judge Sustains, Overrules Objections To Witnesses In Insurer, Reinsurer’s Dispute

    UTICA, N.Y. — A New York federal judge on Nov. 28 sustained and overruled objections from an insurer and reinsurer to two witnesses in a dispute over a $325 million settlement of asbestos claims (Utica Mutual Insurance Co. v. Fireman’s Fund Insurance Co., No. 09-00853, N.D. N.Y.).

  • December 1, 2017

    Judge Denies Extension On Discovery Of Class Policies In Reinsurance Fraud Scheme

    BALTIMORE — A Maryland federal judge on Nov. 29 denied a request to extend the relevant time period for discovery as to 11 class policies experiencing an 2015 cost of insurance (COI) increase in a dispute over an alleged life insurance fraud scheme that shifted debt to reinsurers (Richard Dickman, et al. v. Banner Life Insurance Co., No. 16-192, D. Md.).

  • November 30, 2017

    Federal Judge Grants Discovery Extension In Fraudulent Transfers Suit

    ATLANTA — In a dispute over alleged fraudulent transfers of reinsurance funds, a Georgia federal judge on Nov. 21 granted in part a request to extend discovery for two additional months “only to follow up on existing issues” but said no new discovery is to occur (Canal Insurance Co., et al. v. Golden Isles Reinsurance Company Ltd., et al., No. 15-03331, N.D. Ga.).

  • November 30, 2017

    Magistrate Judge Recommends Denial Of Reinsurance Claims In 9/11 Insurance Dispute

    NEW YORK — In a dispute over claims stemming from the attacks on Sept. 11, 2001, a New York federal magistrate judge on Nov. 27 recommended that insurers be awarded $221.5 million but that their claims arising out of reinsurance contracts be denied (In re: Terrorist Attacks on September 11, 2001, No. 03-MDL-1570, Continental Casualty Co. v. Al Qaeda Islamic Army, No. 04-5970, S.D. N.Y., 2017 U.S. Dist. LEXIS 196192).

  • November 30, 2017

    8th Circuit Upholds Dismissal Of Dispute Seeking To Recover ACA Reinsurance Fee

    ST. LOUIS — Finding sovereign immunity was not waived, the Eighth Circuit U.S. Court of Appeals on Nov. 27 affirmed the dismissal of a lawsuit filed by trustees of a self-insured group health plan seeking to recoup from the U.S. government a fee paid under the Affordable Care Act’s transitional reinsurance program (Paul Batsche, et al. v. Thomas E. Price, No. 16-4305, 8th Cir., 2017 U.S. App. LEXIS 23844).

  • November 29, 2017

    Nebraska Law Preempts Reinsurance Participation Agreement Clause, Panel Says

    LOS ANGELES — Nebraska Uniform Arbitration Act (NUAA) Section 25-2602.01(f) applies to a reinsurance participation agreement (RPA) and renders an arbitration provision unenforceable, a California appeals panel held Nov. 22, finding that a trial judge did not err in refusing to compel arbitration in a breach of contract dispute (Citizens of Humanity, et al. v. Applied Underwriters Inc., et al., No. B276601, Calif. App., 2nd Dist., Div. 2, 2017 Cal. App. LEXIS 1038).

  • November 29, 2017

    Reinsurer Appeals Ruling In Federal Crop Insurance Suit To D.C. Circuit Court

    WASHINGTON, D.C. — A reinsurer on Oct. 10 asked the District of Columbia U.S. Circuit Court of Appeals to reverse the dismissal of its complaint against Federal Crop Insurance Corp. (FCIC) in a reinsurance dispute (ACE American Insurance Co., et al v. Federal Crop Insurance Corp., 16-5348, D.C. Cir.).

  • November 29, 2017

    Insolvent Insurer Asserts Defenses Against Contractual Indemnification Claim

    COLUMBIA, S.C. — An insolvent insurer argues in a Nov. 22 reply brief to the South Carolina federal court that a bank is barred from asserting its contractual indemnification counterclaim in a dispute over the bank’s role as trustee of a reinsurance trust with an insolvent insurer because the bank has no contractual right (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).

  • November 28, 2017

    Insolvent Insurer Had No Duty To Reimburse Hospitals, Virginia High Court Finds

    RICHMOND, Va. — Governing contractual provisions did not obligate an insolvent insurer to reimburse hospitals for legal fees and costs that they incurred in separate proceedings, the Virginia Supreme Court ruled Nov. 22 (Appalachian Regional Healthcare, et al. v. Jacqueline K. Cunningham, et al., No. 161767, Va. Sup., 2017 Va. LEXIS 167).

  • November 28, 2017

    Plaintiffs Seek Extension On Discovery Of Class Policies In Reinsurance Fraud Scheme

    BALTIMORE — In an alleged life insurance fraud scheme that shifted debt to reinsurers, a class of plaintiffs on Nov. 21 asked a Maryland federal court to extend the relevant time period for discovery as to 11 class policies experiencing an 2015 cost of insurance (COI) increase (Richard Dickman, et al. v. Banner Life Insurance Co., No. 16-192, D. Md.).

  • November 28, 2017

    COMMENTARY: Functus Officio: The Clarification Exception

    By Robert M. Hall

  • November 22, 2017

    Judge Strikes Third-Party Witness Testimony In Insurer, Reinsurer’s Coverage Dispute

    UTICA, N.Y. — Before trial in a dispute over a $325 million settlement of asbestos claims, a New York federal judge on Nov. 21 granted an insurer’s request to strike a reinsurer’s submission of deposition testimony in another case by a third-party witness as inadmissible hearsay (Utica Mutual Insurance Co. v. Fireman’s Fund Insurance Co., No. 09-00853, N.D. N.Y.).

  • November 21, 2017

    N.Y. High Court Reverses Barring Of Derivative Claims By Reinsurer’s Shareholder

    NEW YORK — The New York Court of Appeals determined Nov. 20 that a lower court erred in its application of a rule under Cayman law barring a reinsurer’s shareholder from bringing derivative claims against the reinsurer, its directors and its affiliates (Paul Davis v. Scottish Re Group Ltd., et al., No. 111, N.Y. App., 2017 N.Y. LEXIS 3277).

  • November 21, 2017

    Judge Resolves Motions To Exclude Testimony, Evidence In Reinsurer, Insurer Dispute

    UTICA, N.Y. — In a dispute over a $325 million settlement of asbestos claims, a New York federal judge on Nov. 16 addressed a number of motions filed by an insurer and a reinsurer to preclude expert testimony and certain arguments from trial (Utica Mutual Insurance Co. v. Fireman’s Fund Insurance Co., No. 09-00853, N.D. N.Y., 2017 U.S. Dist. LEXIS 189911).

  • November 16, 2017

    Insurer Briefs Federal Court On Trial Issues In Dispute With Reinsurer

    UTICA, N.Y. — In a dispute against a reinsurer over a $325 million settlement of asbestos claims, an insurer in an Oct. 31 letter argues to a New York federal court that it should exclude evidence regarding any of its disputes with other reinsurers and when other reinsurers received notice (Utica Mutual Insurance Co. v. Fireman’s Fund Insurance Co., No. 09-00853, N.D. N.Y.).

  • November 15, 2017

    Magistrate Judge Declines To Amend Discovery Ruling In Reinsurance Fraud Scheme

    BALTIMORE — In an alleged life insurance fraud scheme that shifted debt to reinsurers, a Maryland federal magistrate judge on Nov. 7 refused to amend a discovery order that a life insurer is to submit life insurance policies affected by a cost of insurance (COI) and within the 2004-2015 time range (Richard Dickman, et al. v. Banner Life Insurance Co., No. 16-192, D. Md., 2017 U.S. Dist. LEXIS 161545).