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Mealey's Reinsurance

  • April 03, 2020

    Judge Denies Joinder In Class’s Anti-Kickback Suit Over Captive Reinsurance

    FRESNO, Calif. — A class of mortgagers on April 1 saw their efforts to have an alleged “successor in interest” to a mortgage company joined to their lawsuit alleging anti-kickback violations tied to the requirement of having private mortgage insurers enter into captive reinsurance agreements with the mortgage company’s affiliated “reinsurer” denied (Efrain Munoz, et al. v. PHH Mortgage Corp., et al., No. 08-759, E.D. Calif., 2020 U.S. Dist. LEXIS 57575).

  • April 03, 2020

    Time Extended To File Reinsurer’s Rehabilitation Plan In Light Of Coronavirus

    WILMINGTON, Del. — In light of the recent events surrounding the novel coronavirus, a Delaware chancellor in a March 31 docket entry approved a receiver’s request for more time to file the rehabilitation plan or to head to liquidation for reinsurer Scottish Re (U.S.) Inc. (SRUS) (In matter of Scottish Re [U.S.], Inc. in rehabilitation, No. 2019-0175-AGB, Del. Chanc.).

  • April 03, 2020

    Time Extended To File Reinsurer’s Rehabilitation Plan In Light Of Coronavirus

    WILMINGTON, Del. — In light of the recent events surrounding the novel coronavirus, a Delaware chancellor in a March 31 docket entry approved a receiver’s request for more time to file the rehabilitation plan or to head to liquidation for reinsurer Scottish Re (U.S.) Inc. (SRUS) (In matter of Scottish Re [U.S.], Inc. in rehabilitation, No. 2019-0175-AGB, Del. Chanc.).

  • April 01, 2020

    Workers’ Comp Insurer Gives Update On Related New Jersey State Action

    LINCOLN, Neb. — A letter from a workers’ compensation insurer on March 31 informed a Nebraska federal magistrate judge on the status of a related New Jersey suit concerning issues related to a staffing agency’s promissory note executed pursuant to a reinsurance participation agreement (RPA) (Applied Underwriters Inc. v. Top’s Personnel Inc., No. 15-90, D. Neb.).

  • April 01, 2020

    Federal Judge Dismisses Bermuda Reinsurer’s Securities Fraud Suit

    NEW YORK — A Bermuda-based reinsurer’s securities fraud lawsuit was dismissed March 25 by a New York federal judge because the underlying alleged transaction was not a “domestic” transaction under the Securities Exchange Act (SEA) (Cavello Bay Reinsurance Limited v. Kenneth Shubin Stein, et al., No. 18-11362, S.D. N.Y., 2020 U.S. Dist. LEXIS 54184).

  • April 01, 2020

    Reinsurer:  11th Circuit Should Not Hear Appeal Over Arbitration Ruling

    ATLANTA — A reinsurer argues in a March 26 reply brief that the 11th Circuit U.S. Court of Appeals has no jurisdiction over insurers’ appeal of a “non-final” order to arbitrate their dispute for alleged bad faith refusal to pay their reinsurance claim regarding a construction defects case settlement (Builders Insurance, et al. v. Fletcher Reinsurance Co., No. 20-10969, 11th Cir.).

  • April 01, 2020

    Investor: Burden Is Not Met On Liquidator’s Claims Tied To Hedge Fund Collapse

    NEW YORK — A hedge fund investor argues in his March 16 reply brief that the liquidators of two hedge funds failed to meet their burden “by clear and convincing evidence” of proving claims for fraud, breach of fiduciary duty and aiding and abetting regarding the investor’s alleged role in a hedge fund collapse (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • April 01, 2020

    Justice Bars Testimony In Part In Former AIG Chief’s Defamation Suit

    CARMEL, N.Y. — A New York justice partially excluded expert testimony on March 6 in the defamation lawsuit between a former chairman and CEO of American International Group Inc. (AIG) and a former New York governor following an earlier dispute accusing the AIG chairman of making improper reinsurance transactions (Maurice R. Greenberg v. Eliot L. Spitzer, No. 800004/2018, N.Y. Sup., Putnam Co., 2020 N.Y. Misc. LEXIS 1003).

  • April 01, 2020

    Reinsurance Group, Others Seek Support Of Recovery Fund

    WASHINGTON, D.C. — The Reinsurance Association of America (RAA) and 35 other trade groups wrote to federal lawmakers on March 31 asking for their support of the COVID-19 Business and Employee Continuity and Recovery Fund in an effort to assist businesses being affected by the COVID-19 infection and coronavirus pandemic in the United States.

  • March 31, 2020

    Judge Dismisses Bad Faith Claim Against Life Insurer Over Cost Of Increase

    MIAMI — A Florida federal judge on March 30 dismissed a bad faith claim against a life insurer rather than abate that claim until a breach of contract claim is resolved in the lawsuit over a cost increase allegedly tied to captive reinsurance transactions that benefited the insurer’s corporate parent (Michael Foster, et al. v. Transamerica Life Insurance Co., No. 19-24969, S.D. Fla.).

  • March 31, 2020

    Judge Denies Reconsideration In Reinsurance Dispute Over Credibility Of Testimony

    SYRACUSE, N.Y. — A New York federal judge on March 30 denied reconsideration to an insurer of its earlier challenge in a reinsurance dispute over asbestos claims on whether testimony proved the value that the insurer placed on its insured’s agreement that the policies contained aggregate limits (Utica Mutual Insurance Co. v. Munich Reinsurance America Inc., No. 12-196, Munich Reinsurance America Inc. v. Utica Mutual Insurance Co., No. 13-743, N.D. N.Y.).

  • March 30, 2020

    Reinsurer Asks Judge Not To Reconsider Rulings Over Credibility Of Testimony

    SYRACUSE, N.Y. — In a March 30 opposition brief, a reinsurer calls an insurer’s motion for reconsideration “a third bite at the apple” that “does not meet the extraordinarily high standard” for that motion and, as such, maintains that a New York federal judge should not reconsider whether testimony proved the value that the insurer placed on its insured’s agreement that the policies contained aggregate limits (Utica Mutual Insurance Co. v. Munich Reinsurance America Inc., No. 12-196, Munich Reinsurance America Inc. v. Utica Mutual Insurance Co., No. 13-743, N.D. N.Y.).

  • March 30, 2020

    Judge Sets Trial Date For Breach Of Contract Case Against Reinsurer

    SEATTLE — A breach of contract case between a reinsurer and an association of state public entities has been scheduled by in a Washington federal judge’s March 25 order for a jury trial (Washington Cities Insurance Authority v. Ironshore Indemnity Inc., No. 19-54, W.D. Wash.).

  • March 30, 2020

    Judge Confirms Final Award In Billings Dispute Over Asbestos Claims

    CHICAGO — An Illinois federal judge on March 25 granted an insurer’s petition to confirm a final award in a reinsurance dispute over billings for asbestos claims, finding that the final award superseded an interim final award, which was never “mutual, final, and definite” (Allstate Insurance Co. v. Amerisure Mutual Insurance Co., No. 19-4341; Amerisure Mutual Insurance Co. v. Allstate Insurance Co., No. 19-7080, N.D. Ill., 2020 U.S. Dist. LEXIS 53923).

  • March 30, 2020

    Insurer Compelled To Provide Reinsurance Info In Bad Faith Lawsuit

    CHARLESTON, W.Va. — In a breach of contract and bad faith dispute, a West Virginia federal magistrate judge on March 25 compelled an insurer to produce reinsurance reports in its claim files regarding a fire loss to insureds’ car dealership (Mid-State Automotive, Inc., et al. v. Harco National Insurance Co., No. 19-407, S.D. W.Va., 2020 U.S. Dist. LEXIS 51727).

  • March 27, 2020

    Breach Of Contract Case Dismissed Against Insurer For Lack Of Jurisdiction

    BILLINGS, Mont. — A Montana federal magistrate judge on March 24 dismissed claims against a business auto insurer concerning coverage for a South Dakota resident because the insurer’s reinsurance obligations in the state “do not speak” to its business operations to support the court’s general personal or specific jurisdiction over the insurer (First National Bank of Sioux Falls v. The Estate of Eric Ryan Carlson, et al., No. 18-111, D. Mont., 2020 U.S. Dist. LEXIS 51089).

  • March 25, 2020

    COMMENTARY: Reinsurance And COVID-19

    By Larry P. Schiffer

  • March 25, 2020

    Farmer Indicted By Government For Filing False Insurance Claims

    LEXINGTON, Ky. — A farmer allegedly conspired to defraud by filing false insurance claims reimbursed by the U.S. Department of Agriculture (USDA), the U.S. government says in a March 5 indictment in a Kentucky federal court (United States v. Roger Wilson, No. 20-cr-41, E.D. Ky.).

  • March 25, 2020

    Reinsurer Failed To Inspect Church’s Boiler, Congregant Alleges In $1M Lawsuit

    BOSTON — A church congregant accuses a reinsurer in a Feb. 28 complaint in a Massachusetts federal court of failing to perform jurisdictional inspections on a boiler and appurtenances at the church that resulted in him being injured and incurring $1 million in medical costs (Brian R. Bishop v. Hartford Steam Boiler Inspection and Insurance Company, No. 20-30029, D. Mass.).

  • March 24, 2020

    Insurer In Rehabilitation: No Evidence Of Fraud In Securing Loan Transactions

    NEW YORK — The receiver of a hedge fund failed to offer evidence in support of fraudulent conveyance and unjust enrichment claims regarding the securing of three investment management agreements (IMAs), Senior Health Insurance Company of Pennsylvania (SHIP) argues in an March 6 opposition brief  to a New York federal court (In re Platinum-Beechwood Litigation, No. 18-6658, Melanie L. Cyganowski, et al. v. Beechwood Re Ltd., et al., No. 18-12018, S.D. N.Y.).