Mealey's Reinsurance

  • October 03, 2019

    Puerto Rico Insurance Commissioner: Insurer’s Liquidation Being Attacked

    SAN JUAN, Puerto Rico — Shareholders and officers of an insolvent insurer “disguise” their first amended complaint as one for civil conspiracy to deprive constitutional rights but are actually attempting to “collaterally attack” the insurer’s liquidation proceedings, the Puerto Rico insurance commissioner and others argue in an Oct 1. motion to dismiss in Puerto Rico federal court (Victor J. Salgado and Associates Inc., et al. v. Javier Rivera-Rios, et al., No. 19-1663, D. Puerto Rico).

  • October 03, 2019

    Runoff Insurer Opposes Dismissal Of Its Third-Party Aiding, Abetting Claims

    NEW YORK — A runoff insurer in a Sept. 23 opposition asks a New York federal court not to dismiss its third-party complaint against a defendant for aiding and abetting a Ponzi-like scheme in which fraudulent misrepresentations were made to gain investment control and discretion over $320 million of the runoff insurer’s reserves because the defendant “attempts to minimize his role” in the scheme and “makes a concerted effort to dispute the factual allegations against him” (In re Platinum-Beechwood litigation, No. 18-6658; Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-6658; Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, Melanie L. Cyganowski v. Beechwood Re Ltd., et al., Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., and Senior Health Insurance Company of Pennsylvania v. PB Investment Holdings Ltd., et al., No. 18-12018, S.D. N.Y.).

  • October 02, 2019

    Judge Enters Judgment Of $6.25M Against Reinsurer In Asbestos Settlements Dispute

    UTICA, N.Y. — Pursuant to a jury verdict, a New York federal judge on Oct. 1 entered judgment in favor of an insurer and against its reinsurer under two separate reinsurance certificates in the amount of $6.25 million in a dispute between the parties over coverage for settlements of asbestos claims (Utica Mutual Insurance Co. v. Century Indemnity Co., No. 13-995, N.D. N.Y.).

  • October 02, 2019

    Insurer Seeks Dismissal Of Woman’s Claim As Creditor Under Reinsurance Agreements

    JASPER, Ala. — In a woman’s lawsuit against a city and its employees over sexual misconduct allegations in a jail, the city’s insurer on Sept. 19 seeks dismissal for lack of subject matter jurisdiction of a claim that the woman is a judgment creditor as an assignee of the insurer’s rights under reinsurance agreements (Whitley Goodson v. J.C. Poe Jr., et al., No. 19-1399, N.D. Ala.).

  • October 01, 2019

    Utah Federal Judge Transfers Venue Of Reinsurance Participation Agreements Case

    SALT LAKE CITY — A Utah federal judge on Sept. 27 transferred venue of a breach of contract case regarding reinsurance participation agreements (RPAs) in a workers’ compensation insurance program to a Nebraska federal court pursuant to a forum selection clause in the RPAs (Alpine Building LLC, et al. v. Applied Underwriters Inc., et al., No. 18-00805, D. Utah).

  • September 30, 2019

    Judge Acquits 1 Executive On Charges In Hedge Scheme, Grants New Trial To Another

    BROOKLYN, N.Y. — A federal judge in New York on Sept. 27 acquitted a former executive of securities fraud charges arising from his role in a hedge fund scheme to transfer assets to a reinsurance company and related entities to defraud bondholders in an oil and gas company and granted a new trial to the defunct hedge fund’s co-founder on similar charges (United States v. Mark Nordlicht, et al., No. 16-cr-00640, E.D. N.Y., 2019 U.S. Dist. LEXIS 167084).

  • September 30, 2019

    Reinsurer Seeks Judgment On Contract Claims, Defenses In Asbestos Coverage Dispute

    UTICA, N.Y. — A reinsurer on Sept. 27 filed several motions for judgment as a matter of law on an insurer’s claim for breach of a 1973 certificate and the insurer’s other contract claims and affirmative defenses in their New York federal court dispute over coverage for settlements of asbestos claims (Utica Mutual Insurance Co. v. Century Indemnity Co., No. 13-995, N.D. N.Y.).

  • September 27, 2019

    Reinsurer Asks To Stay ERISA Case Pending U.S. High Court Ruling On Standing Issue

    BROOKLYN, N.Y. — Pending the U.S. Supreme Court’s decision in a case concerning the issue of standing under the Employee Retirement Income Security Act, a captive reinsurer and other defendants on Sept. 25 asked a New York federal court to stay a lawsuit accusing them of a scheme to cheat home health aides out of lost wages and benefits (Ynes M. Gonzalez de Fuente, et al. v. Preferred Home Care of New York LLC, et al., No. 18-6749, E.D. N.Y.).

  • September 27, 2019

    Judge Awards Attorney Fees To Reinsurers After Improper Appeal For Insolvent Insurer

    NEW YORK — A federal judge in New York on Sept. 26 granted a reduced attorney fees award of $3,550 to London underwriters for their response to an improperly filed appeal on behalf of an insolvent insurer in a dispute over reinsurance payments for construction site injuries (Certain Underwriting Members of Lloyds of London, et al. v. Insurance Company of the Americas, Nos. 16-323 & 16-374, S.D. N.Y., 2019 U.S. Dist. LEXIS 165702).

  • September 27, 2019

    Panel Upholds Nonsuit Ruling In Tortious Interference Case Against Reinsurance Broker

    HARRISBURG, Pa. — The Pennsylvania Superior Court on Sept. 25 affirmed a judgment denying an audit company’s motion to remove a trial court’s nonsuit finding in a tortious interference lawsuit against a reinsurance broker (Boomerang Recoveries, LLC v. Guy Carpenter & Company, LLC, et al., No. 2557 EDA 2018, Pa. Super., 2019 Pa. Super. Unpub. LEXIS 3642).

  • September 26, 2019

    Judge Remands Insurer, Reinsurer’s Dispute For Clarification Of Award

    NEW YORK — A federal judge in New York on Sept. 25 denied motions for confirmation of an arbitration award filed by a reinsurer and an insurer and, instead, remanded the dispute to the arbitrators for clarification of the award (Park Avenue Life Insurance Co. v. Allianz Life Insurance Company of North America, No. 19-1089, S.D. N.Y., 2019 U.S. Dist. LEXIS 164382).

  • September 26, 2019

    Reinsurer Says Insurer Failed To Cooperate On Claim, Seeks Estimation

    AUSTIN, Texas — A reinsurer, as a debtor, argues to a Texas federal bankruptcy court in a Sept. 23 reply brief that a medical malpractice insurer has failed to cooperate with resolution of its guaranty claim and, thus, the court should grant the reinsurer’s motion for an estimation of that claim (In re:  Capson Corp., et al., Nos. 19-10890, 19-10893 & 19-10894, W.D. Texas Bkcy.).

  • September 24, 2019

    Federal Judge Dismisses Dispute Over Arbitration Between Reinsurer, Insureds

    CHICAGO — Converting a reinsurer’s motion to compel arbitration into a motion to dismiss, a federal judge in Illinois on Sept. 23 dismissed without prejudice insureds’ lawsuit seeking to enjoin the reinsurer from proceeding with arbitration their dispute over a breach of a reinsurance participation agreement (RPA) (Nandorf, Inc., et al. v. Applied Underwriters Captive Risk Assurance Company, Inc., No. 18-05285, N.D. Ill., 2019 U.S. Dist. LEXIS 161473).

  • September 19, 2019

    Confirmation Of Arbitration Award In Favor Of Reinsurer, Car Dealership Appealed

    ATLANTA — A vehicle service contracts administrator argues in an Aug. 27 appellant brief to the Georgia Court of Appeals that a lower court erred in confirming a $462,971 arbitration award in favor of a car dealership and a reinsurer, while the car dealership and reinsurer argue in a cross-appeal filed the same day that the lower court failed to award attorney fees (Adventure Motorsports Reinsurance Ltd., et al. v. Interstate National Dealer Services Inc., No. A20A0036, and Interstate National Dealer Services Inc. v. Adventure Motorsports Reinsurance Ltd., et al., No. A20A0037, Ga. App.).

  • September 18, 2019

    Health Aides Seek To Strike Reinsurer’s Pleading For Failure To Post Security

    BROOKLYN, N.Y. — Home health aides ask a New York federal court in a Sept. 13 reply to strike a captive reinsurer’s motion to dismiss their lawsuit accusing the reinsurer and affiliates of a scheme to cheat the aides out of lost wages and benefits because the reinsurer should be required to post a $25 million bond before any pleading is accepted (Ynes M. Gonzalez de Fuente, et al. v. Preferred Home Care of New York LLC, et al., No. 18-6749, E.D. N.Y.).

  • September 17, 2019

    Insureds Say Insufficient Evidence For Reinsurer, Entities’ Damages Claim

    SAN FRANCISCO — Insureds argue in their Aug. 15 brief before a California appeals court that a lower court never reached a joint and several liability issue because the lower court properly found insufficient evidence to support a damages claim by a reinsurer and its related entities for amounts owed under a reinsurance participation agreement (RPA) (Warwick California Corp., et al. v. Applied Underwriters Inc., et al., No. A155523, Calif. App., 1st Dist., Div. 4).

  • September 17, 2019

    Judge Decides On Runoff Insurer’s Advancement Of Litigation Expenses

    NEW YORK — A New York federal judge on Sept. 12 ruled on a runoff insurer’s advancement of litigation expenses under investment management agreements (IMAs) for third-party actions arising out of the initial fraud lawsuit filed by the runoff insurer 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.).

  • September 17, 2019

    Insurer Seeks To Compel Reinsurers To Produce Info On Allocation Of Settlement

    BOSTON — An insurer in a Sept. 13 motion asks a Massachusetts federal court to compel reinsurers to produce documents and interrogatory responses relating to their allocation and billing of its own 2009 settlement with an insured in a separate matter (Certain London Market Company Reinsurers v. Lamorak Insurance Co., No. 18-10534, D. Mass., 2019 U.S. Dist. LEXIS 38909).

  • September 17, 2019

    Insolvent Insurer’s Shareholders Lack Standing To Seek Redress Of Damages, Defendants Say

    SAN JUAN, Puerto Rico — An insolvent insurer’s stock owner, its president and vice president lack standing to seek redress of claimed damages in their lawsuit alleging a civil conspiracy to deprive them of their constitutional rights, the Puerto Rico insurance commissioner and others argue in a Sept. 3 motion to dismiss filed in a Puerto Rico federal court (Victor J. Salgado and Associates Inc., et al. v. Javier Rivera-Rios, et al., No. 19-1663, D. Puerto Rico).

  • September 17, 2019

    Insurer Removes Reinsurers’ Breach Of Contract Case To New Jersey Federal Court

    TRENTON, N.J. — An insurer on Aug. 27 removed to a New Jersey federal court a breach of contract and breach of the implied covenant of good faith and fair dealing lawsuit regarding the insurers’ handling of payments for underlying asbestos claims and the indemnification the insurers sought under facultative reinsurance agreements (Certain Underwriters at Lloyd’s London, et al. v. The North River Insurance Co., et al., No. 19-17231, D. N.J.).

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