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Mealey's Reinsurance

  • August 16, 2017

    Reinsurer Appeals To 2nd Circuit Insurer’s $18M Arbitration Award

    BRIDGEPORT, Conn. — A reinsurer on Aug. 14 appealed to the Second Circuit U.S. Court of Appeals a ruling requiring it to pay up to an additional $18 million in reinsurance proceeds to an insurer pursuant to an arbitration award (General Re Life Corp. v. Lincoln National Life Insurance Co., No. 17-2496, 2nd Cir.).

  • August 16, 2017

    Reinsurance Executives Say $50M RICO Suit With Insurers Should Be Sent To Arbitration

    NEW YORK — Reinsurance executives argue in an Aug. 14 reply brief that a New York federal court should compel arbitration of insurers’ $50 million Racketeer Influenced and Corrupt Organizations Act case or, alternatively, stay the dispute “in the interests of fairness and judicial economy” (Bankers Conseco Life Insurance Co., et al. v. Moshe M. Feuer, et al., No. 16-7646, S.D. N.Y.).

  • August 16, 2017

    Insurer Seeks Clarification On Discovery To Reinsurer In Breach Of Contract Suit

    PHILADELPHIA — In a breach of contract suit, an insurer moved for clarification on Aug. 11 with a Pennsylvania federal court to confirm that it is to produce only unredacted versions of documents previously produced with redactions based on proprietary material, reserves and “other reinsurance” information and additional documents reflecting the date when the insurer provided first notice of asbestos claims to other reinsurers of relevant policies (R&Q Reinsurance Co. v. St. Paul Fire & Marine Insurance Co., No. 16-1473, E.D. Pa.).

  • August 14, 2017

    Panel Finds Error In Ruling That Reinsurance Agreement Is An Insurance Contract

    RICHMOND, Va. — A trial judge erred in applying the doctrine of judicial estoppel to hold that a “reinsurance participation agreement” (RPA) constituted an insurance contract under Virginia law, the Fourth Circuit U.S. Court of Appeals ruled Aug. 11, reversing in part a ruling and remanding for further proceedings (Minnieland Private Day School Inc. v. Applied Underwriters Captive Risk Assurance Company Inc., No. 16-1511, 4th Cir., 2017 U.S. App. LEXIS 14916).

  • August 14, 2017

    Judge Approves Payment Of Reinsurance To Insured In Insurer’s Liquidation

    HARRISBURG, Pa. — In the liquidation of Reliance Insurance Co., a Pennsylvania trial judge on Aug. 9 approved a direct payment of $269,341 in proceeds by a guarantor of a reinsurer to an insured (In re:  Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

  • August 11, 2017

    Insurer Asserts No Waiver In Right To Arbitrate $1.3M Suit With Reinsurer

    MONTGOMERY, Ala. — A nonprofit public insurer argues to an Alabama federal court in an Aug. 9 brief that it did not waive its right to arbitrate its $1.3 million lawsuit under a reinsurance agreement and that a reinsurer will not be prejudiced in sending the dispute to arbitration (Alabama Municipal Insurance Corp. v. Munich Reinsurance America Inc., No. 16-cv-00948, M.D. Ala.).

  • August 11, 2017

    Federal Judge Orders Parties To Consummate Settlement In $9.3M Reinsurance Dispute

    NEW YORK — Writing “ok, you win” on a memo endorsement seeking a settlement extension, a New York federal judge ordered the parties in a $9.3 million reinsurance fraud action to consummate their settlement of all claims and counterclaims by Sept. 15 (AmTrust North America Inc., et al. v. Safebuilt Insurance Services Inc., et al., No. 14-cv-9494, S.D. N.Y.).

  • August 10, 2017

    Magistrate Judge Issues Sanctions In Favor Of Reinsurer In Promissory Note Dispute

    LINCOLN, Neb. — A Nebraska federal magistrate judge on Aug. 7 granted a reinsurer’s motion for sanctions against an insurer for its failure to provide complete answers to interrogatories in a dispute concerning sums allegedly owed under a promissory note executed in connection with a reinsurance participation agreement (Applied Underwriters Inc. v. Top’s Personnel Inc., No. 15CV90, D. Neb., 2017 U.S. Dist. LEXIS 124136).

  • August 9, 2017

    Panel Remands For Trial On Execution Of Arbitration Clause Under Reinsurance Agreement

    SAN FRANCISCO — Vacating a lower court’s judgment, the Ninth Circuit U.S. Court of Appeals on Aug. 4 remanded a dispute for a trial on whether a corn and flour tortilla maker executed arbitration agreements under a reinsurance participation agreement (RPA) or a request to bind coverages and services (Arevalo Tortilleria Inc. v. Applied Underwriters Captive Risk Assurance Company Inc., No. 15-56830, 9th Cir., 2017 U.S. App. LEXIS 14399).

  • August 9, 2017

    Panel: Assignee’s Breach Of Contract Suit Against Reinsurer Is Untimely

    CHICAGO — A breach of contract lawsuit filed by an assignee of certain reinsurance receivables rights from an insolvent insurer was untimely, the Seventh Circuit U.S. Court of Appeals affirmed Aug. 7, finding that 215 Illinois Insurance Code Statute 5/206, 215 ILCS 5/206, does not provide that a liquidator may wait until the end to net the debits and credits (Pine Top Receivables of Illinois, LLC v. Banco De Seguros Del Estado, No. 16-3499, 7th Cir., 2017 U.S. App. LEXIS 14492).

  • August 3, 2017

    Finance Company Seeks Collection Of $26M Award Against Insurer, Reinsurers

    WASHINGTON, D.C. — A financial services company filed a breach of contract complaint on July 20 in the District of Columbia federal court, seeking to collect on a $26 million judgment arbitration award from a credit insurer and its reinsurers (Vantage Commodities Financial Services I, LLC v. Assured Risk Transfer PCC, LCC, et al., No. 17-01451, D. D.C.).

  • August 3, 2017

    Allegations Support Fraud Claim In Sham Reinsurer Scheme, Justice Concludes

    NEW YORK — In two alleged schemes involving a “sham reinsurance company” and a “sham medical billing company,” a New York trial justice ruled July 17 that an investment fund sufficiently asserted a fraud claim because it alleged that its assets were used in both schemes (Wimbledon Financing Master Fund Ltd. v. Weston Capital Management LLC, et al., No. 653468/2015, N.Y. Sup., New York Co., 2017 N.Y. Misc. LEXIS 2725).

  • August 3, 2017

    Farming Co-op Appeals Ruling Over Payment Of Premium Rebates In Reinsurance Years

    CINCINNATI — A farming cooperative on Aug. 2 appealed to the Sixth Circuit U.S. Court of Appeals a ruling that after a merger with a nongrandfathered cooperative, it lost its status as an entity approved to make premium-rebate payments for 2005, 2006 or 2007 reinsurance years (Sunrise Cooperative Inc. v. U.S. Department of Agriculture, et al., No. N/a, 6th Cir.).

  • August 3, 2017

    Reinsurer: Insurer Waived Right To Arbitrate $1.3M Suit By Invoking Litigation

    MONTGOMERY, Ala. — A nonprofit public insurer waived its right to arbitrate its $1.3 million lawsuit under a reinsurance agreement because it invoked the litigation process, a reinsurer argues in an Aug. 1 reply in Alabama federal court, saying it would be prejudiced (Alabama Municipal Insurance Corp. v. Munich Reinsurance America Inc., No. 16-cv-00948, M.D. Ala.).

  • August 2, 2017

    Judge Orders Insurer To Produce Documents To Reinsurer In Breach Of Contract Suit

    PHILADELPHIA — In a breach of contract suit over asbestos insurance claims, a Pennsylvania federal judge on Aug. 1 ordered an insurer to produce to a reinsurer original, unredacted versions of documents concerning proprietary information, historical loss reserves and information related to other reinsurance companies (R&Q Reinsurance Co. v. St. Paul Fire & Marine Insurance Co., No. 16-1473, E.D. Pa., 2017 U.S. Dist. LEXIS 120858).

  • August 1, 2017

    Reinsurers Allege Scheme To Refuse Selling Reinsured Vehicle-Protection Products

    EL PASO, Texas — A car dealership’s shareholder and his reinsurance companies allege in a July 27 complaint filed in a Texas federal court that individuals schemed to take control over the dealership and to decline to sell vehicle-protection products that are reinsured by the reinsurers (Richard C. Poe II, et al. v. Anthony E. Bock, et al., No. 17-00232, W.D. Texas).

  • July 31, 2017

    Steel Maker Says Settlement With Insurer Triggered Reinsurer’s Indemnity Duties

    NEW YORK — A steel maker argues in its July 21 reply brief to a New York federal court that its settlement agreement with an insurer triggered a reinsurer’s indemnity obligations under an arbitration award because it liquidated the steel maker’s claim (National Indemnity Co. v. IRB Brasil Resseguros S.A., No. 15-3975, S.D. N.Y.).

  • July 31, 2017

    Mortgagors, Reinsurer Seek Judgment On RESPA Claim Under 3rd Circuit Law

    PITTSBURGH — In a mortgage insurance reinsurance scheme case, mortgagors and a reinsurer argue in a July 12 motion that they are entitled to judgment on a Real Estate Settlement Procedures Act (RESPA) claim under current Third Circuit U.S. Court of Appeals law (Linda Menichino, et al. v. Citibank, N.A., et al., No. 12-00058, W.D. Pa., 2017 U.S. Dist. LEXIS 86380).

  • July 31, 2017

    Insurers Oppose Arbitration Of $50M RICO Suit Against Reinsurance Executives

    NEW YORK — Insurers argue in a brief filed July 24 in a New York federal court that they should not be coerced by three reinsurance executives to send a $50 million Racketeer Influenced and Corrupt Organizations Act case to arbitration because the executives are not parties to a reinsurance agreement (Bankers Conseco Life Insurance Co., et al. v. Moshe M. Feuer, et al., No. 16-7646, S.D. N.Y.).

  • July 28, 2017

    Excess Policies Cap Liability Per Claim, Justice Finds After Reading Reinsurance Policy

    BOSTON — Excess and primary insurance policies provide that the maximum coverage for two doctors and a nurse sued in a medical malpractice action was $2.5 million per individual, a Massachusetts  justice ruled June 2 after reading the language of two reinsurance policies to determine the excess and primary policies’ liability (Li Chen, et al. v. Paul Donovan, et al., 1584 CV 01625-BLS2, Mass. Super., Suffolk Co., 2017 Mass. Super. LEXIS 66).