Mealey's Reinsurance

  • February 25, 2021

    Judge Denies Insurers’ Motion To Dismiss In Excess Collateral Reinsurance Dispute

    MINNEAPOLIS — A Minnesota federal judge on Feb. 23 denied a motion to dismiss filed by insurers in an interpleader suit over excess collateral in an insurance-reinsurance program after determining that the insurers failed to meet their burden of showing that the parties have an agreement to arbitrate and that the cross-claims for indemnification fall within the scope of the arbitration agreement.

  • February 18, 2021

    Agent Maintains That ‘Claw Back’ Payments Were Amended In Reinsurance Agreements

    FORT WORTH, Texas — An insurance agent reiterates in a Feb. 11 reply in support of its motion for summary judgment filed in Texas federal court that amendments to quota share reinsurance agreements regarding “claw back” premium payments removed the agent’s future obligations under the agreements.

  • February 18, 2021

    Reinsurer Not Permitted To Remove Plane Crash Coverage Suit, Judge Says

    FORT PIERCE, Fla. — A Florida federal judge on Feb. 1 remanded a breach of contract and bad faith suit filed by individuals who are seeking to collect an $844 million judgment obtained against an airline whose plane crashed while transporting a Brazilian soccer team after determining that the English reinsurer for the flight cannot remove the suit as a third-party defendant pursuant to precedent set by the U.S. Supreme Court.

  • February 18, 2021

    Insurers Seek To Stay Discovery In Excess Collateral Reinsurance Dispute

    MINNEAPOLIS — In an interpleader suit over excess collateral in an insurance-reinsurance program, insurers ask a Minnesota federal court in a Feb. 3 memorandum of law to stay discovery on breach of contract cross-claims until the federal court rules on the insurers’ motion to dismiss.

  • February 18, 2021

    Reinsurer Must Show Cause As To Why Amended Complaint Should Not Be Permitted

    MONTGOMERY, Ala. — An Alabama federal judge on Feb. 11 ordered a reinsurer to show cause as to why a nonprofit municipality insurer’s motion for leave to file an amended complaint, which seeks coverage for a number claims submitted by Alabama towns, should not be granted.

  • February 17, 2021

    Insurer Says Insured Failed To Provide Timely Notice Of Environmental Claim

    NEWARK, N.J. — In a Feb. 1 answer to an industrial equipment supplier’s complaint alleging that an insurer breached its contract by refusing to pay for an environmental investigation and remediation at an insured property, the insurer claims that the insured’s claims against it may be barred based on the insured’s failure to provide timely notice of an occurrence under the policy.

  • February 17, 2021

    Ceding Insurers Dismiss Suit Seeking Relief Under Reinsurance Agreements

    SAN FRANCISCO — Ceding insurers that filed a suit in California federal court seeking a declaration that a loss portfolio transfer does not cancel or affect their rights under reinsurance agreements on Feb. 1 notified the court that they were voluntarily dismissing their suit.

  • February 17, 2021

    Environmental Claims Payment Dispute Between Insurer, Reinsurer Dismissed

    LOS ANGELES — A California federal judge on Jan. 15 granted an insurer and reinsurer’s motion to dismiss a dispute over the reinsurer’s alleged failure to indemnify environmental claims payments after the parties reached an agreement to dismiss the suit with prejudice.

  • February 16, 2021

    Oral Arguments Scheduled For Asbestos, Reinsurance Dispute Pending In 6th Circuit

    CINCINNATI — The Sixth Circuit U.S. Court of Appeals is scheduled to hear oral arguments on March 3 in an appeal of an asbestos coverage dispute by an insurer that claims a district court erred in denying its motion to dismiss the insured’s breach of contract and bad faith suit.

  • February 11, 2021

    All Claims Arising Out Of Reinsurance Agreement Must Be Arbitrated, Judge Says

    GRAND RAPIDS, Mich. — A Michigan federal judge on Feb. 10 granted a reinsured’s motion to dismiss a reinsurer’s suit seeking a declaration that there is no reinsurance coverage for costs related to claims made against the reinsured’s employee benefit plans after determining that the reinsurance agreement’s arbitration clause clearly provides that all claims must be arbitrated.

  • February 08, 2021

    Reinsurer Contends Railroad Company’s Amended Complaint Must Be Dismissed

    SPRINGFIELD, Ill. — An amended complaint filed by a railroad company seeking declarations and injunctive relief over reinsurer Illinois Mine Subsidence Insurance Fund’s (IMSIF) pursuit of reimbursement as subrogee for mine subsidence claims the reinsurer paid on behalf of subrogor property owners must be dismissed for failure to state a claim upon which relief can be granted, the IMSIF maintains in a Feb. 5 motion to dismiss.

  • February 08, 2021

    401(k) Participant Failed To Show Alternative Actions Could Have Protected Plan

    NEW YORK — The Second Circuit U.S. Court of Appeals on Feb. 4 determined that a district court did not err in finding that a plan participant’s breach of the duty of prudence claim cannot proceed because the participant failed to allege any alternative actions that could have been taken by General Electric Co. (GE) to protect participants in GE’s employee stock option plan from losses caused by a decrease in GE’s stock prices after the company announced that the liabilities of its reinsurance subsidiaries were under reserved.

  • February 04, 2021

    Former Willis Re Employee Seeks Expedited Discovery In Employment Contract Dispute

    SAN JUAN, Puerto Rico — A former employee of Willis Re Inc. maintains in a Jan. 4 reply brief filed in Puerto Rico federal court that expedited discovery is warranted in a dispute over an employment agreement’s nonsolicitation clause because expedited discovery will aid the court in deciding whether a preliminary injunction should be issued per the employee’s request.

  • January 27, 2021

    COMMENTARY: The Role Of Utmost Good Faith In Reinsurance Disputes

    By Robert M. Hall

  • February 03, 2021

    Request For Pre-Motion Conference In Reinsurance Dispute Denied

    NEW YORK — A New York federal judge on Jan. 27 denied a defendant’s request for a pre-motion conference regarding the defendant’s anticipated motion to dismiss and granted an insurer and reinsurer’s motion for leave to amend their complaint in a suit seeking to enforce a promissory note worth more than $4.6 million tied to a reinsurance arrangement for an in-force book of disability income business.

  • February 03, 2021

    Reinsurance Policy Bars Claim Against School Board Arising Out Of Son’s Death

    RALEIGH, N.C. — A school board is immune from liability for a wrongful death suit filed against the board by the mother of a deceased student football player because the reinsurance policy at issue excludes coverage for claims filed by athletic participants, the North Carolina Court of Appeals said Feb. 2 in reversing a trial court’s ruling in favor of the parent.

  • February 03, 2021

    Excess Insurer Does Not Object To Posting Of Bond In Reinsurance Billings Case

    NEW YORK — An excess insurer does not object to a reinsurer’s request for approval of a supersedeas bond and stay of execution of a judgment entered in favor of the excess insurer while the reinsurer pursues an appeal of a $35 million judgment and an award of more than $2.9 million in prejudgment interest entered against the reinsurer in an asbestos coverage dispute, according to the excess insurer’s response filed Jan. 11 in New York federal court.

  • February 02, 2021

    Amicus Curiae Says District Court Erred In Instructing Jury In Insurance Bribery Suit

    RICHMOND, Va. — The National Association of Criminal Defense Lawyers on Jan. 28 filed an amicus curiae brief in the Fourth Circuit U.S. Court of Appeals, contending that a district court erred in instructing a jury on a disputed element of a charge in a $2 million bribery scheme case that resulted in convictions against a multinational insurance and reinsurance management company’s founder and a company consultant.

  • January 29, 2021

    Hedge Fund Receiver Drops Appeal Over Alleged Aiding, Abetting Of Fraud Scheme

    NEW YORK — The Second Circuit U.S. Court of Appeals said on Jan. 28 that a hedge fund receiver withdrew her appeal of a ruling that an investment holding company did not aid and abet fraud with three investment management agreements (IMAs) involving a reinsurer, its related entities and Senior Health Insurance Company of Pennsylvania (SHIP).

  • January 27, 2021

    Government Says It Can Set Off ACA Risk-Corridor Liabilities Against Insolvent Insurers

    WASHINGTON, D.C. — The U.S. Court of Federal Claims has jurisdiction to decide claims seeking setoffs of debts against risk-corridor liabilities owed to insolvent health insurers under the Patient Protection and Affordable Care Act (ACA) risk corridor, the U.S. government argues in a Jan. 22 opposition brief to a motion to dismiss, also noting its authority to recover interest owed on ACA debts.