Newsletter RSS

Mealey's Reinsurance

  • December 05, 2019

    Insurer Asks Court To Confirm Final Award In Reinsurance Billings Case

    CHICAGO — An insurer argues in a Nov. 22 brief that an Illinois federal court should confirm a final award in its reinsurance billings dispute over asbestos claims and reject a reinsurer’s motion to confirm an interim award (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.).

  • December 04, 2019

    8th Circuit:  Arbitrator Did Not Exceed Powers In Issuing Award To Crop Insurer

    ST. LOUIS — An arbitrator did not exceed his powers in denying a farmer’s claim based on the appraised value of the crop nor did the arbitrator exceed his powers by making a good farming practices determination, the Eighth Circuit U.S. Court of Appeals held Dec. 2, remanding for confirmation of an arbitration award in favor of a federally reinsured crop insurer  (Terry R. Balvin v. Rain and Hail LLC, Nos. 18-3018 & 18-3061, 8th Cir., 2019 U.S. App. LEXIS 35750).

  • December 04, 2019

    Judge Denies Reinsurer’s Post-Trial Motions In Case Against Insurer Over Billings

    UTICA, N.Y. — In an “epilogue to a hard-fought contract dispute” between an insurer and a reinsurer over the reinsurer’s alleged breach of two indemnity agreements for asbestos claim settlements, a New York federal judge on Dec. 3 denied the reinsurer’s motion to amend or correct the judgment, renewed motions for judgment as a matter of law, motion for a new trial and motion for post-trial discovery (Utica Mutual Insurance Co. v. Century Indemnity Co., No. 13-995, N.D. N.Y., 2019 U.S. Dist. LEXIS 207547).

  • November 27, 2019

    Former Inmate Seeks Insurer’s Rights Under Reinsurance Treaties

    BIRMINGHAM, Ala. — A former inmate alleges in a Nov. 26 first amended complaint that the city of Jasper, Ala., and employees at the police department and its jail infringed upon her constitutional rights when she was sexually harassed during her time in jail and that she is entitled to an assignment of rights under the city insurer’s reinsurance treaties or other agreements (Charity Tessener v. J.C. Poe, Jr., et al., No. 19-01314, N.D. Ala.).

  • November 27, 2019

    Judge Confirms Reinsurer’s Arbitration Award, Denies Motion To Seal Award

    NEW YORK — A federal judge in New York on Nov. 25 confirmed an undisclosed arbitration award in favor of a reinsurer in a dispute with insurers over losses under a second blanket casualty excess of loss reinsurance agreement and ordered the parties to publicly file all documents previously sealed (TIG Insurance Co. v. National Union Fire Insurance Company of Pittsburgh, PA, et al., No. 19-10238, S.D. N.Y., 2019 U.S. Dist. LEXIS 205120).

  • November 26, 2019

    Reinsurer, Insurer Ask For Stay Of Litigation Based On Insurer’s Restraining Order

    BRIDGEPORT, Conn. — Citing an insurer’s restraining order, a reinsurer, the insurer and affiliates in a Nov. 21 letter request that a Connecticut federal judge stay an insured’s case over alleged violations of Connecticut insurance, unfair trade practice and securities laws concerning workers’ compensation insurance programs (Charter Oak Oil Co. Inc. v. Applied Underwriters Inc., et al., No. 17-00689, D. Conn.).

  • November 25, 2019

    Court Has Jurisdiction Over Bermuda Reinsurer In ERISA Case, Trustees Say

    WASHINGTON, D.C. — Trustees of the United Mine Workers of America (UMWA) pension plan argue in a Nov. 21 brief that there is evidence of a Bermuda reinsurer’s contacts with the United States and that discovery will reveal additional evidence to support personal jurisdiction by a District of Columbia federal court over alleged violations of the Employee Retirement Income Security Act regarding the failure to make $934 million in withdrawal liability payments (Michael H. Holland, et al. v. Cardem Insurance Company Ltd., No. 19-02362, D. D.C.).

  • November 22, 2019

    Judge Upholds Deferring To Rule On Post-Acquittal Relief From Runoff Insurer

    NEW YORK — A federal judge in New York on Nov. 19 denied reconsideration of a decision to defer ruling on an investment company’s former executive’s post-acquittal relief for advancement of $708,784.77 in legal fees and costs from a runoff insurer because the executive fails to meet the strict standard for reconsideration (In re:  Platinum-Beechwood Litigation, No. 18-6658, David Levy v. Senior Health Insurance Company of Pennsylvania, No. 19-3211, S.D. N.Y., 2019 U.S. Dist. LEXIS 201679).

  • November 22, 2019

    Federal Judge Reconsiders Supersedeas Bond, Orders Runoff Insurer To Pay $467,795.32

    NEW YORK — A federal judge in New York on Nov. 19 ordered a runoff insurer to pay $467,795.32 to plaintiffs after reconsidering a previous order and set forth the procedures for advancement of fees and expenses under investment management agreements (IMAs) for third-party actions arising out of the runoff insurer’s initial fraud lawsuit over the mismanagement and misuse of $320 million (In re:  Platinum-Beechwood Litigation, No. 18-6658, B Asset Manager L.P., et al. v. Senior Health Insurance Company of Pennsylvania, No. 19-4487, S.D. N.Y.).

  • November 20, 2019

    Judge Upholds $1.4M Arbitration Award Against Crop Insurer

    ST. JOSEPH, Mo. — A federal judge in Missouri on Nov. 19 affirmed a $1.4 million arbitration award in favor of a farmer because the farmer was entitled to indemnity from a federally reinsured crop insurer for corn crop losses sustained in 2013 (Great American Insurance Co. v. Jonathan Russell, No. 16-9001, W.D. Mo., 2019 U.S. Dist. LEXIS 200211).

  • November 19, 2019

    Bank, Finance Company Seek Dismissal Of Runoff Insurer’s Aiding, Abetting Claims

    NEW YORK — An investment bank and a financial services company argue in a Nov. 18 reply brief to a New York federal court that despite 18 months and the benefit of discovery, a runoff insurer fails to allege that two valuation reports prepared by them “substantially assisted” an alleged fraud or caused damage to the runoff insurer in the investment of $320 million in a failed Ponzi scheme (In re Platinum-Beechwood Litigation, No. 18-6658, Senior Health Insurance Company of Pennsylvania v. Lincoln International LLC, et al., No. 19-07137, S.D. N.Y.).

  • November 18, 2019

    Insurer Asks New York Federal Court For More Settlement Talks With Reinsurer

    NEW YORK — Following an earlier ruling dismissing a reinsurer’s counterclaims concerning termination and rescission of a reinsurance agreement, an insurer in a Nov. 14 letter writes to a New York federal judge proposing that settlement discussions continue with the reinsurer (AmTrust North America Inc. v. Signify Insurance Ltd., et al., No 18-3779, S.D. N.Y.).

  • November 15, 2019

    Former Employee Says No Violation Of Crop Insurer’s Preliminary Injunction Order

    OMAHA, Neb. — A former employee argues in a Nov. 12 opposition brief that a Nebraska federal court should deny a federally reinsured crop insurer’s request for an order of civil contempt because the former employee says she has not violated the court’s preliminary injunction order (Farm Credit Services of America FLCA v. Kathy Mens, No. 19-14, D. Neb.).

  • November 15, 2019

    Judge Denies Stay Pending Insurer’s Appeal Of Jurisdiction Decision For Arbitration Panel

    NEW YORK — A federal judge in New York on Nov. 14 refused to stay pending an insurer’s recent appeal of his decision granting reinsurers’ declaratory relief in a dispute over which of two arbitrations has jurisdiction to decide reinsurance billings for asbestos losses because the insurer “failed to make the requisite strong showing of likelihood of success on the merits” (Chicago Insurance Co. v. General Reinsurance Corp., et al., No. 18-10450, S.D. N.Y.).

  • November 14, 2019

    Judge Denies Severance Of Runoff Insurer’s Claims In 2 Separate Lawsuits

    NEW YORK — A federal judge in New York on Nov. 12 declined to sever claims made by a runoff insurer against a defendant in two separate lawsuits arising out of allegations of a hedge fund scheme and the misuse and mismanagement of $320 million (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936; Melanie L. Cyganowski, et al. v. Beechwood Re Ltd., et al., No. 18-12018, S.D. N.Y.).

  • November 13, 2019

    Reinsurer, Insolvent Insurer Seek Waiver Of Compliance Regarding $5M In Funds

    AUSTIN, Texas — A reinsurer and an insolvent insurer, as debtors, ask a Texas federal bankruptcy court in a Nov. 12 brief to waive compliance requirements for $5 million in proceeds from a life insurance policy with the account where the proceeds are currently being held (In re:  Capson Corp., et al., Nos. 19-10890, 19-10893 & 19-10894, W.D. Texas Bkcy.).

  • November 13, 2019

    Insurer, Reinsurer’s Breach Of Contract Case Receives 3rd Schedule Modification

    DETROIT — In a breach of contract dispute between an insurer and its reinsurer over reinsurance billings for underlying asbestos claims, a federal judge in Michigan on Nov. 1 issued a third stipulated order modifying the schedule order and joint discovery plan (Amerisure Mutual Insurance Co. v. Transatlantic Reinsurance Co., No. 18-11966, E.D. Mich.).

  • November 13, 2019

    Trial Court Lacked Jurisdiction Over Reinsurer’s Case For Recovery Of $4.8M, Panel Says

    LINCOLN, Neb. — The Nebraska Court of Appeals on Nov. 12 upheld the dismissal of a reinsurer’s lawsuit seeking $4.8 million owed under a reinsurance participation agreement (RPA) because a trial court lacked personal jurisdiction (Applied Underwriters Captive Risk Assurance Company, Inc. v. Sky Materials Corp., No. A-19-308, Neb. App., 2019 Neb. App. LEXIS 343).

  • November 12, 2019

    Insurers Tell Court Of More Dismissals Of Third-Party RICO, Fraud Claims

    NEW YORK — In a dispute arising out of a receiver’s lawsuit seeking redress for damages from of a “massive fraudulent scheme” involving hedge funds, insurers on Nov. 8 inform a New York federal court that they voluntarily dismiss claims against a third-party defendant for fraudulent inducement and violations of the Racketeer Influenced and Corrupt Organizations Act after previously doing so for other defendants (In re Platinum-Beechwood Litigation, No. 18-6658, Washington National Insurance Co., et al. v. Mark Nordlicht, et al., No. 18-12018, S.D. N.Y.).

  • November 12, 2019

    Reinsurers: Liquidator Bound By Arbitration Clauses In $150M Hurricane Loss Case

    SAN JUAN, Puerto Rico — Reinsurers on Nov. 8 joined an opposition brief arguing to a Puerto Rico federal court that an insurer’s liquidator can be bound to arbitration clauses in the insurer’s reinsurance agreements in a dispute over $150 million in losses from two hurricanes (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).