Mealey's Reinsurance

  • February 23, 2017

    ACA Reinsurance Program Applies To State Employers, 6th Circuit Affirms

    CINCINNATI — The Patient Protection and Affordable Care Act (ACA)’s reinsurance program applies to state employers, the Sixth Circuit U.S. Court of Appeals affirmed Feb. 17 (The State of Ohio, et al. v. United States of America, et al., No. 16-3093, 6th Cir., 2017 U.S. App. LEXIS 2844).

  • February 23, 2017

    2nd Circuit Ends $7.8M Appeal Of Reinsurance Judgment Debtor

    NEW YORK — The Second Circuit U.S. Court of Appeals on Feb. 21 acknowledged a stipulation and ended the appeal of a judgment debtor that opposed a $7.8 million lower court ruling against it (AmTrust North America, Inc. and Technology Insurance Company, Inc., as judgment creditors of Pacific Re, Inc. on behalf of its protected cell Pac Re 5-AT v. Safebuilt Insurance Services Inc., No. 16-4070, 2nd Cir.).

  • February 22, 2017

    London Market Reinsurers Say Arbitration Witness Was Convicted Of Fraud

    NEW YORK — A group of London market reinsurers on Feb. 20 brought to the attention of a federal court in New York that the lead witness in a reinsurance arbitration has recently been convicted of conspiracy and securities and wire fraud (Certain Underwriting Members at Lloyd’s, London v. Insurance Company of the Americas, No. 16-cv-00323, S.D. N.Y.).

  • February 21, 2017

    Judge Approves Reinsurance Commutation Agreement For Insolvent Insurer

    CHICAGO — An Illinois judge on Feb. 16 approved the commutation of certain reinsurance contracts covering third-party construction defect claims in an agreement between a reinsurer and an insolvent insurer (In the matter of the liquidation of Legion Indemnity Co., No. 02 CH 06695, Ill. Cir., Cook Co., Chanc. Div.).

  • February 21, 2017

    Liquidator Asks Court To Approve Multiple Insurance Guarantor Claims

    CONCORD, N.H. — The liquidator of an insolvent insurer on Feb. 2 asked a New Hampshire court to approve his recommendations for allowance of claims to various states’ insurance guaranty associations and a number of reinsurers (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack Co.).

  • February 21, 2017

    Liquidator Wants Reinsurance Commutation Agreement Approved

    CONCORD, N.H. — The liquidator of an insolvent insurer on Feb. 6 asked a New Hampshire court to approve a confidential reinsurance commutation agreement with two London based reinsurers (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack Co.).

  • February 21, 2017

    Liquidator Wants Approval Of $4.5 Million Reinsurance Commutation Agreement

    CHICAGO — The liquidator of an insolvent insurer on Feb. 2 asked an Illinois court to approve a $4.5 million reinsurance commutation agreement releasing a reinsurer from its obligations related to construction defect claims from homeowners associations (In the matter of the liquidation of Legion Indemnity Co., No. 02 CH 06695, Ill. Cir., Cook Co., Chanc. Div.).

  • February 16, 2017

    Justice Approves Reinsurance Commutation Agreement For Insolvent Insurer

    CONCORD, N.H. — A New Hampshire justice on Feb. 10 approved an insolvent insurer’s reinsurance commutation agreement, which involves the insolvent insurer as both reinsurer and reinsured (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack Co.).

  • February 16, 2017

    Circuit Court Dockets Appeal Of Mortgage Insurance Reinsurance Kickbacks Case

    PHILADELPHIA — The Third Circuit U.S. Court of Appeals on Dec. 22 docketed the appeal of a group of mortgage borrowers challenging a lower court ruling that their mortgage insurance reinsurance kickback claims were time-barred (William Weiss, et al. v. Bank of America Corporation, et al., No. 16-4368, 3rd Cir.).

  • February 16, 2017

    Reinsured Wants Summary Judgment Against Reinsurer In Breach Of Contract Case

    NEW HAVEN, Conn. — A reinsured insurer told a federal court in Connecticut on Jan. 23 that there are no genuine issues of material fact that should stop the court from issuing a summary judgment order regarding the insurer’s breach of contract and other claims against its reinsurer (Travelers Casualty and Surety Company, f/k/a The Aetna Casualty and Surety Company v. Century Indemnity Company as successor to Insurance Company of North America, No. 16-cv-00170, D. Conn.).

  • February 15, 2017

    Judge Denies Objection, Says Magistrate Judge’s Discovery Order Was Proper

    SALT LAKE CITY — A federal judge in Utah on Feb. 13 denied an insolvent insurer’s objection to a magistrate judge’s order compelling discovery of certain categories of information sought by a group of the insolvent insurer’s former directors and officers (Western Insurance Company v. Dick L. Rottman, et al., No. 13-cv-00436, D. Utah, 2017 U.S. Dist. LEXIS 20709).

  • February 9, 2017

    Assignee Asks 7th Circuit To Reverse Lower Court Finding Regarding Timeliness

    CHICAGO — The assignee of certain reinsurance receivables rights challenging a lower court’s finding that its claims against a reinsurer are untimely told the Seventh Circuit U.S. Court of Appeals on Jan. 31 that the lower court erred, among other reasons, because it issued a summary judgment on allegedly disputed issues of material fact (Pine Top Receivables of Illinois, LLC v. Banco De Seguros Del Estado, No. 16-3499, 7th Cir.).

  • February 9, 2017

    Judge Orders European Reinsurer To Proceed With Arbitration Of Dispute

    NEW YORK — A federal judge in New York on Feb. 7 granted an insurer’s motion to stay a $5.4 million reinsurance dispute and compel a European reinsurer to the arbitration table, holding that the reinsurer cannot avoid an arbitration clause in a reinsurance agreement by arguing that the reinsurance agreement is void (HDI Global SE v. Lexington Insurance Company, No. 16-cv-07241, S.D. N.Y.).

  • February 9, 2017

    Reinsurer Says It Was Not Obligated To Follow The Fortunes Of Its Reinsured

    NEW YORK — A reinsurer told the Second Circuit U.S. Court of Appeals on Feb. 1 that a lower court judge erred in finding that the reinsurer was obligated to pay its reinsured under the follow-the-fortunes or follow-the-settlement doctrine (Utica Mutual Insurance Company v. Clearwater Insurance Company, No. 16-cv-2824 and Utica Mutual Insurance Company v. Clearwater Insurance Company, No. 16-2535, 2nd Cir.).

  • February 8, 2017

    Insurer: Challenge Of Validity Of Reinsurance Agreement Should Be Arbitrated

    NEW YORK — A reinsured insurer argues in a Feb. 3 brief in a federal court in New York that since a German reinsurer is challenging an agreement as a whole and not the arbitration clause, the parties’ dispute regarding the validity of a reinsurance agreement should be left to arbitrators to decide (HDI Global SE v. Lexington Insurance Company, No. 16-cv-07241, S.D. N.Y.).

  • February 8, 2017

    Insurer, Reinsurer Agree To End Reinsurance Breach Of Contract Case

    SYRACUSE, N.Y. — An insurer and its reinsurer told a federal court in Massachusetts on Jan. 4 that they are ending their reinsurance billing dispute and breach of contract case (OneBeacon America Insurance Company v. Transatlantic Reinsurance Company, No. 14-cv-14067, D. Mass.).

  • February 7, 2017

    Liquidator Asks Court To Approve Direct Payments From Reinsurer To Insured

    HARRISBURG, Pa. — The liquidator of an insolvent insurer asked a Pennsylvania court on Feb. 3 to approve a cut-through arrangement by which a reinsurer will make direct payments to an insured, leaving the liquidation estate out of the transactions (In re:  Reliance Insurance Company in Liquidation, No. 1 REL 2001, Pa. Cmwlth.).

  • February 7, 2017

    Directors And Officers Argue That Reinsurance Information Is Discoverable

    SALT LAKE CITY — A group of an insolvent insurer’s former directors and officers told a federal court in Utah on Jan. 27 that discovery of reinsurance information is relevant to their defense against the claims brought by the insolvent insurer (Western Insurance Company v. Dick L. Rottman, et al., No. 13-cv-00436, D. Utah).

  • February 3, 2017

    Judge Assures Confidentiality Of Material In Asbestos- Related Reinsurance Case

    PHILADELPHIA — A federal judge in Pennsylvania in a reinsurance dispute over asbestos-related claims granted on Feb. 2 an insurer’s unopposed motion for the issuance of a protective order regarding confidential information (R&Q Reinsurance Company v. St. Paul Fire & Marine Insurance Company, No. 16-cv-01473, E.D. Pa.).

  • February 2, 2017

    Farm Says It Should Have Been Given Information Regarding Criminal Investigation

    SAN FRANCISCO — An agricultural business has told the Ninth Circuit U.S. Court of Appeals that information allegedly withheld by its federal crop insurer should have been divulged before the farm signed a settlement that led to a criminal indictment (POCO, LLC v. Farmer’s Crop Insurance Alliance, Inc., No. 16-35310, 9th Cir.).