Mealey's Reinsurance

  • April 24, 2017

    Insurer To N.Y. High Court: Asbestos Defense Costs Are Not Held To Reinsurer’s Cap

    NEW YORK — A reinsurer must cover an insurer’s costs to defend an insured in asbestos litigation beyond its total liability cap because a prior New York decision does not compel a conclusion that the cap includes both indemnity and defense costs, the insurer argues in an April 14 appellant brief regarding a certified question to the New York Court of Appeals (Global Reinsurance Corporation of America, successor in interest Constitution Reinsurance Corp. v. Century Indemnity Co., successor interest to CCI Insurance Co., successor interest to Insurance Company of North America, No. CTQ-2016, 0005, N.Y. App.).

  • April 20, 2017

    Reinsured Says Court Correctly Confirmed Reinsurance Arbitration Award

    NEW HAVEN, Conn. — An insurer told a federal court in Connecticut on April 18 that a motion for reconsideration of the confirmation of an arbitration award should not be granted because there was no manifest injustice in the confirmation decision (General Re Life Corporation v. The Lincoln National Life Insurance Company, No. 15-cv-01860, D. Conn.).

  • April 20, 2017

    Insurer Says It Is Challenging Decision That Favors Its Reinsurer

    NEW YORK — An insurer told a federal court in New York on April 19 that it is appealing the court’s decision that vacated a reinsurance arbitration award because of the actions of an arbitrator (Certain Underwriting Members at Lloyd’s, London v. Insurance Company of the Americas, No. 16-cv-00323, S.D. N.Y.).

  • April 20, 2017

    Mortgage Insurance Reinsurer Says It Did Not Violate RESPA

    CHICAGO — A mortgage insurance reinsurer told a federal court in Illinois on April 5 that it is not the party responsible for disclosing information to mortgagees as required by the Real Estate Settlement Procedures Act (RESPA) (People of the State of Illinois, ex rel., Acting Director of Insurance, Anne Melissa Dowling v. HMC Reinsurance Company, a Vermont Corporation, No. 16-cv-08156, N.D. Ill.).

  • April 20, 2017

    Judge: Court Holds Rule Over Nonresidents In Reinsurance Case

    ATLANTA — A federal judge in Georgia on April 13 denied a motion to dismiss claims regarding alleged fraudulent transfers of reinsurance funds for lack of jurisdiction, holding that the court does hold jurisdiction over a group of people that do not live in Georgia (Canal Insurance Company, et al. v. Golden Isles Reinsurance Company, Ltd, et al., No. 15-cv-3331, N.D. Ga.).

  • April 20, 2017

    Reinsurer Says Declaration Does Not Contradict Prior Testimony

    NEW HAVEN, Conn. — A reinsurer told a federal court in Connecticut on April 10 that a declaration of one of its executives in support of a motion for summary judgment should not be stricken because it is not in contradiction of earlier testimony (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.).

  • April 19, 2017

    Judge Refuses To Quash Bank’s Subpoena Over Financial Documents

    COLUMBIA, S.C. — Finding that not all documents are privileged under the South Carolina Holding Company Regulatory Act, a South Carolina federal judge on April 10 declined to quash a subpoena in which a bank accused of mishandling reinsurance funds seeks an insurer’s financial documents from state insurance regulators (Companion Property and Casualty Insurance Co. n/k/a Sussex Insurance Co. v. U.S. Bank National Association v. Redwood Reinsurance Spc. Ltd., et al., No. 15-01300, D. S.C., 2017 U.S. Dist. LEXIS 54182).

  • April 19, 2017

    Receiver Says Insolvent Insurer Owes London-Based Reinsurers For 2013 Premium

    LAS VEGAS — The receiver of an insolvent insurer reported to a Nevada court on Feb. 15 that the receivership estate does not have enough assets to fully pay claims against the estate and owes money to certain London-based reinsurers (State of Nevada, ex rel. Commissioner of Insurance, in His Official Capacity as Statutory Receiver for Delinquent Domestic Insurer v. Professional Aviation Insurance Reciprocal, a Nevada Domiciled Reciprocal Captive Insurance Company, No. A-700829-p, Nev. Cir., Clark Co.).

  • April 19, 2017

    Reinsurer Claims Reinsured Improperly Submitted New Evidence In Reply

    NEW HAVEN, Conn. — A reinsurer told a federal court in Connecticut on April 10 that its reinsured should not be allowed to introduced new evidence in its summary judgment reply brief in a dispute over whether the reinsurer is obligated to honor the reinsured’s settlement (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.).

  • April 17, 2017

    Reinsured Says Documents Sought By Reinsurer Have Nothing To Do With Case

    BOSTON — An insurer told a federal court in Massachusetts on April 10 that the records sought by its reinsurer are irrelevant to the instant case and that by seeking these documents, the reinsurer is ignoring the tenants of the follow-the-settlements doctrine (Lamorak Insurance Company v. Everest Reinsurance Co., No. 15-cv-13425, D. Mass.).

  • April 17, 2017

    Clerk Notifies Parties That Inaction May Cause Dismissal Of Reinsurance Case

    NEW HAVEN, Conn. — The clerk of a federal court in Connecticut on April 3 notified an insurer and an insolvent reinsurer that they must explain their inaction regarding a suit or the suit will be dismissed (Select Insurance Company v. Excalibur Reinsurance Corporation, f/k/a PMA Capital Insurance Company, No. 15-cv-00715, D. Conn.).

  • April 14, 2017

    Reinsurer: Cession Statement Essential To Consummation Of Reinsurance Agreement

    PHILADELPHIA — A reinsurer told a federal court in Pennsylvania on April 11 that its reinsured is incorrect in its assertions regarding a cession statement, which the reinsurer says is an essential element of the parties’ reinsurance agreement (R&Q Reinsurance Company v. St. Paul Fire & Marine Insurance Company, No. 16-cv-01473, E.D. Pa.).

  • April 12, 2017

    Insurer Says Its Payment Of Asbestos Claims Was Reasonable

    SYRACUSE, N.Y. — An insurer told a federal court in New York on April 7 that its payments to its insured were reasonable and that a reinsurer’s challenge to those payments is contrary to the follow-the-fortunes doctrine (Utica Mutual Insurance Company v. Century Indemnity Company, No. 13-cv-00995, N.D. N.Y.).

  • April 12, 2017

    Reinsurer Says Opinion Granting Motion To Confirm Arbitration Award Was Improper

    NEW HAVEN, Conn. — A reinsurer on April 7 asked a federal court in Connecticut to reconsider its opinion confirming an arbitration award, arguing that there is no basis in the record to show how to calculate a monetary judgment (General Re Life Corporation v. The Lincoln National Life Insurance Company, No. 15-cv-01860, D. Conn.).

  • April 7, 2017

    Panel Upholds Denial Of Arbitration For Insolvent Insurer’s Reinsurance Contract

    CHICAGO — A trial judge properly invoked collateral estoppel to deny a motion to compel arbitration filed by an assigned entity to an insolvent insurer’s reinsurance contract, an Illinois appeals panel ruled March 31 (Pine Top Receivables of Illinois LLC v. Transfercom Ltd., No. 1-16-1781, Ill. App., 6th Div., 2017 Ill. App. LEXIS 196).

  • April 5, 2017

    Judge Orders Reinsurers To Pay Captive Reinsurance Program Participants

    NEW YORK — A federal judge in New York on April 4 ordered a pair of reinsurers to pay participants to a captive reinsurance program $4 million plus pre- and post-judgment interest (AmTrust North America, Inc., et al. v. Pacific Re, Inc., et al., No. 17-cv-00515, S.D. N.Y.).

  • April 5, 2017

    Insurer Relies On Follow-The- Fortunes Rule To Show Reinsurer Must Cover Claims

    NEW YORK — An insurer told the Second Circuit U.S. Court of Appeals on April 3 that the language of certain reinsurance agreements are the same as if the agreements had specific follow-the-fortunes provisions (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.).

  • April 4, 2017

    Judge Confirms Clarified Version Of Reinsurance Arbitration Award

    NEW HAVEN, Conn. — A federal judge in Connecticut on March 31 granted a motion to confirm an arbitration award as clarified, noting that the original unclarified award was ambiguous (General Re Life Corporation v. The Lincoln National Life Insurance Company, No. 15-cv-01860, D. Conn., 2017 U.S. Dist. LEXIS 48860).

  • April 4, 2017

    Judge: Relationship Involving Arbitrator Justifies Vacatur Of Award

    NEW YORK — A federal judge in New York on March 31 vacated a reinsurance arbitration award because of an arbitrator’s failure to disclose his relationships with one of the arbitrating parties (Certain Underwriting Members at Lloyd’s, London v. Insurance Company of the Americas, Nos. 16-cv-323, 16-cv-374, S.D. N.Y.).

  • April 4, 2017

    Liquidator Reports On Recommended Allowances Of U.K.-Based Reinsurance Claims

    CONCORD, N.H. — The liquidator of an insolvent insurer on March 23 reported to a New Hampshire court more than $1 million in recommended reinsurance allowances for verified losses (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Super., Merrimack Co.).