Mealey's Reinsurance

  • October 18, 2017

    Mortgagors, Reinsurer Assert 3rd Circuit Law Entitles Them To Judgment On RESPA Claim

    PITTSBURGH — Mortgagors and a reinsurer in a mortgage insurance reinsurance scheme case tell a Pennsylvania federal court in an Oct. 6 reply brief that homeowners fail to offer reasoning as to why the mortgagors and reinsurer are not entitled to judgment on a Real Estate Settlement Procedures Act (RESPA) claim under Third Circuit U.S. Court of Appeals law (Linda Menichino, et al. v. Citibank, N.A., et al., No. 12-00058, W.D. Pa.).

  • October 18, 2017

    Judge Orders Insurer To Produce Claim Information In Reinsurance Fraud Case

    ATLANTA — In a dispute over alleged fraudulent transfers of reinsurance funds, a Georgia federal judge on Oct. 6 ordered an insurer to produce information for each claim for which it has the claim date within six months of the start or end of a reinsurance agreement (Canal Insurance Co., et al. v. Golden Isles Reinsurance Company Ltd,, et al., No. 15-03331, N.D. Ga.).

  • October 18, 2017

    Reinsurance Facultative Certificates Cover Defense Costs In Excess Of Cap

    HARRISBURG, Pa. — Reinsurance facultative certificates covered defense expenses in excess of a liability cap, a Pennsylvania appeals panel ruled Oct. 17, affirming that insurers were entitled to interest on certain proofs of loss for asbestos claims issued before 2013 (Century Indemnity Co. v. OneBeacon Insurance Co., No. 1280 EDA 2016, Pa. Super., 2017 Pa. Super. LEXIS 806).

  • October 17, 2017

    Judge Reverses Ruling On Yield Crop Exclusion For Reinsurance With FCIC

    DENVER — A division of the U.S. Department of Agriculture improperly determined that a yield crop exclusion was not immediately available to farmers upon the passage of a farm bill for purposes of calculation in reinsurance coverage, a Colorado federal judge ruled Oct. 13 (Glenn Ausmus, et al. v. Sonny Perdue, et al., No. 16-01984, D. Colo., 2017 U.S. Dist. LEXIS 169305).

  • October 17, 2017

    Government: Jurisdiction Lacking In Liquidators’ Suit Over Reinsurance Funds

    COLUMBIA, S.C. — The U.S. government says in its Sept. 26 reply brief in a South Carolina federal court that liquidators for a failed South Carolina Patient Protection and Affordable Care Act (ACA) co-operative insurer failed to establish jurisdiction in their lawsuit alleging improper withholding of reinsurance payments from and setting off of debts owed by the government (Raymond G. Farmer, et al. v. United States of America, et al., No. 17-00956, D. S.C.).

  • October 16, 2017

    Judge OKs Forbearance Agreement Between Reinsurer, Insurer In Arbitration Dispute

    ATLANTA — A Georgia federal judge approved on Oct. 12 an amended forbearance agreement in a dispute between a Bermuda reinsurer and an insurer and administratively closed the case (TIG Insurance Co. v. Appalachian Reinsurance [Bermuda] Ltd., No. 17-02938, N.D. Ga.).

  • October 16, 2017

    Dismissal Sought In Reinsurers’ RICO, Breach Of Contract Dispute Over Alleged Scheme

    EL PASO, Texas — In a lawsuit alleging a scheme to take control over a dealership and to decline selling vehicle-protection products that are reinsured by the reinsurers, defendants argue in their Oct. 11 reply brief to a Texas federal court for dismissal in favor of a state probate court action (Richard C. Poe II, et al. v. Anthony E. Bock, et al., No. 17-00232, W.D. Texas).

  • October 11, 2017

    Insurer Cannot Recover Amounts Over ‘Reinsurance Accepted’ Limit, Panel Says

    ROCHESTER, N.Y. — An insurer is not entitled to recover any amounts exceeding the “reinsurance accepted” amount set forth in reinsurance certificates, a New York appeals panel ruled Oct. 6 (Utica Mutual Insurance Co. v. Alfa Mutual Insurance Co., et al., No. 17-00305, N.Y. Sup., App. Div., 4th Dept., 2017 N.Y. App. Div. LEXIS 7064).

  • October 9, 2017

    Reinsurers Oppose Dismissal Of RICO, Breach Of Contract Claims Over Alleged Scheme

    EL PASO, Texas — A shareholder of car dealerships and his reinsurance companies on Oct. 4 filed an opposition in Texas federal court to dismissal of their complaint alleging a scheme to take control over the dealership and to decline selling 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).

  • October 9, 2017

    Judge Issues $3.2M Default Judgment In Favor Of Reinsurer In Fraudulent Transfer Dispute

    SAN DIEGO — A California federal judge on Oct. 4 granted a reinsurer’s request for a $3.2 million default judgment in a dispute over alleged breach of reinsurance agreements as a result of a series of fraudulent transfers (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al., No. 16-3038, S.D. Calif., 2017 U.S. Dist. LEXIS 165582).

  • October 5, 2017

    Reinsurer Argues Dispute With Insolvent Insurer Must Be Arbitrated Or Transferred

    AUSTIN, Texas — A New Zealand reinsurer argues in a Sept. 12 reply brief that a Texas federal court should transfer venue or compel arbitration of a reinsurance agreement dispute with an insolvent insurer because a breach of contract claim is subject to an arbitration clause (Gramercy Insurance Co. v. Contractor’s Bonding Ltd., No. 17-723, W.D. Texas).

  • October 5, 2017

    Credit Insurer Seeks Dismissal Of Claims In Breach Of Contract Suit Against It, Reinsurers

    WASHINGTON, D.C. — A credit insurer argues in a Sept. 29 motion that a financial services company failed to assert a claim against it in a breach of contract lawsuit filed in the District of Columbia federal court, in which the financial services company seeks to collect on a $26 million judgment arbitration award from the 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.).

  • October 3, 2017

    Magistrate Judge Compels Discovery In Life Insurance Scheme Involving Reinsurers

    BALTIMORE — In an alleged life insurance fraud scheme that shifted debt to reinsurers, a Maryland federal magistrate judge on Sept. 28 ordered a life insurer 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

  • October 2, 2017

    Farming Co-Op Says It Did Not Lose Status To Pay Premium Rebates In Reinsurance Years

    CINCINNATI — A farming cooperative argues in a Sept. 12 brief to the Sixth Circuit U.S. Court of Appeals that it did not lose status as an entity approved to make premium-rebate payments for 2005, 2006 or 2007 reinsurance years after its merger with a nongrandfathered cooperative (Sunrise Cooperative Inc. v. U.S. Department of Agriculture, et al., No. 17-3807, 6th Cir.).

  • September 29, 2017

    Reinsurer Asserts Statute Of Limitations Defense To Breach Of Contract Counterclaims

    PHILADELPHIA — In response to an insurer’s breach of contract counterclaims, a reinsurer on Sept. 27 filed an amended answer in a Pennsylvania federal court, asserting a statute of limitations defense and that it did not agree to reinsure an excess umbrella policy (R&Q Reinsurance Co. v. St. Paul Fire & Marine Insurance Co., No. 16-1473, E.D. Pa.).

  • September 29, 2017

    Judge Declines To Dismiss Claims Against Bank Over Reinsurance Trust Mishandling

    COLUMBIA, S.C. — An insurer sufficiently alleged claims for breach of contract, breach of fiduciary duty, negligence/gross negligence and negligent misrepresentation against a bank for its role as trustee of a reinsurance trust with an insolvent insurer, a South Carolina federal judge ruled Sept. 28, refusing to dismiss the claims (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C., 2017 U.S. Dist. LEXIS 159628).

  • September 28, 2017

    Judge Dismisses Suit Over Breach Of Reinsurance Trust Duties For Lack Of Jurisdiction

    COLUMBIA, S.C. — Citing a recent U.S. Supreme Court ruling, a South Carolina federal judge on Sept. 25 dismissed a lawsuit accusing a bank of breaching its duties as trustee of a reinsurance trust account for lack of personal jurisdiction (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16- 2621, D. S.C., 2017 U.S. Dist. LEXIS 156301).

  • September 27, 2017

    Magistrate Judge Declines Revisiting Ruling On Documents Between Insurer, Reinsurer

    CINCINNATI — In an asbestos coverage dispute, an Ohio federal magistrate judge on Sept. 26 refused to reconsider a prior decision where she declined to conduct an in camera review of an insurer’s documents disclosed to third parties other than a reinsurer and a claims adjuster because they are not entitled to protection under the attorney-client privilege (The William Powell Co. v. National Indemnity Co., et al., No. 14-807, S.D. Ohio, 2017 U.S. Dist. LEXIS 157733).

  • September 26, 2017

    Magistrate Judge Denies Reinsurer’s Bid On Discovery For Distribution Of Funds

    SAN DIEGO — A California federal magistrate judge on Sept. 22 denied a reinsurer’s request for expedited discovery to locate unlawfully distributed funds (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al., No. 16-3038, S.D. Calif., 2017 U.S. Dist. LEXIS 155546).

  • September 26, 2017

    Judge Finds Fact Issue On Use Of Reinsurance Costs For Costs Of Insurance Increase

    PHILADELPHIA — A Pennsylvania federal judge ruled Sept. 22 that it is not implausible that a provision allowing a life insurer to consider that future “expenses” for a cost of insurance (COI) calculus would not include reinsurance costs (EFG Bank AG, Cayman Branch, et al. v. Lincoln National Life Insurance Co., No. 17-02592, E.D. Pa., 2017 U.S. Dist. LEXIS 154985).