Mealey's Reinsurance

  • May 05, 2021

    Judge Schedules Jury Trial In Asbestos, Reinsurance Coverage Dispute

    ALBANY, N.Y. — A New York federal judge on April 30 issued a trial order, scheduling a jury trial to begin June 21 in a dispute between an insurer and a reinsurer over whether defense costs paid on behalf of an insured for asbestos liabilities are covered under the reinsurer’s policies.

  • May 05, 2021

    Insurer, Reinsurer Say Facts Support Allegations Against Reinsurance Trust’s Investors

    NEW YORK — An insurer and reinsurer’s second amended complaint filed in New York federal court 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 should not be dismissed because the insurer and reinsurer have sufficiently alleged facts in support of their claims that the investors breached their contractual and fiduciary duties under a promissory note, the insurer and reinsurer claim in an April 26 response to the investors’ motion to dismiss.

  • May 05, 2021

    Insured Says Insurers Breached Contracts By Failing To Pay For Environmental Claim

    NEWARK, N.J. — In an April 27 amended complaint filed in New Jersey federal court, an insured claims that its insurers, one of which is a subsidiary of a reinsurance group, breached their contracts by refusing to pay for an environmental investigation and remediation at an insured property.

  • May 05, 2021

    Reinsured Is Entitled To Only Nominal Damages, Connecticut Judge Says

    HARTFORD, Conn. — A Connecticut judge on March 19 determined that a reinsured is entitled to only nominal damages of $1 because the reinsured failed to prove that the amounts billed to a reinsurer were consistent with the reinsurer’s obligations under the reinsurance contract and failed to establish how the billed amounts were calculated under the terms of the reinsurance contract.

  • May 05, 2021

    Appellate Panel Reinstates Claims Against Reinsurance Trusts’ Administrator

    NEW YORK — A New York appellate panel on April 20 reversed a trial court’s dismissal of breach of contract and breach of fiduciary duty claims alleged against the administrator of reinsurance trusts after determining that a question of fact exists as to whether the administrator was liable for losses sustained to the reinsurance trusts and whether the administrator owed fiduciary duties to the beneficiaries of the reinsurance trusts.

  • May 03, 2021

    Reinsurers Say Insurer’s Allocation Contradicts What Was Paid By Insurer

    BOSTON — Summary judgment should be granted in favor of reinsurers involved in a reinsurance billings dispute over the insurer’s allocation of a $120 million environmental claims settlement because there is no dispute that the insurer’s reinsurance allocation contradicts the exposures that the insurer actually settled, the reinsurers contend in an April 14 reply in support of a motion for summary judgment filed in Massachusetts federal court.

  • May 03, 2021

    Panel Majority Says District Court Incorrectly Dismissed Crop Insurance Suit

    CINCINNATI — The majority of a Sixth Circuit U.S. Court of Appeals panel on April 28 reversed a district court’s dismissal of a putative class action filed by farmers against crop insurers and the federal agencies that reinsure crop insurers after determining that the district court incorrectly concluded that the pricing mechanisms for dry-bean crop insurance in Michigan and Minnesota were identical.

  • May 03, 2021

    Asbestos Suit Remanded; Claims Against Insurance, Reinsurance Broker Are Viable

    BIRMINGHAM, Ala. — An Alabama federal judge on April 29 remanded a receiver’s suit seeking a coverage declaration for underlying asbestos personal injury suits filed against a dissolved thermal insulation contractor after determining that the insurance broker for the insured contractor was not fraudulently joined because the receiver stated viable claims against the broker related to insurance and reinsurance policies allegedly issued to the insured contractor.

  • April 30, 2021

    Insurers’ Claims Against Reinsurer’s Parent Companies To Proceed, Federal Judge Says

    LOS ANGELES — A California federal judge on April 14 denied a motion to dismiss filed by the parent companies of a reinsurer after determining that the insurers sufficiently alleged facts in support of their claims for intentional interference with contractual relation and inducing breach of contract stemming from the insurers’ reinsurance billings.

  • April 30, 2021

    Claims Against Insurer, Reinsurer To Proceed, Federal Judge Determines

    MIAMI — A Florida federal judge on April 23 denied a motion to dismiss filed by an insurer and reinsurers after determining that the insureds adequately stated claims for breach of contract and tortious interference of contract arising out of a coverage dispute for property damage caused by Hurricane Dorian in the Bahamas.

  • April 30, 2021

    Judge Adopts Finding That Reinsurer Owes No Coverage For Wrongful Acts Claims

    TAMPA, Fla. — A Florida federal judge on April 27 overruled a self-insured intergovernmental risk management association’s objections to a magistrate judge’s recommendation that summary judgment be entered in favor of a reinsurer because the magistrate judge correctly found that the reinsurer owed no coverage for underlying wrongful acts claims for which the self-insured sought coverage.

  • April 22, 2021

    Preliminary Injunction In Dispute Over Willis Re’s Nonsolicitation Clause Denied

    SAN JUAN, Puerto Rico — A Puerto Rico federal judge on April 19 denied a motion for a preliminary injunction filed by a former employee of Willis Re Inc. in a dispute over an employment agreement’s nonsolicitation clause after determining that the agreement’s nonsolicitation clause is enforceable because Florida law, and not Puerto Rico law, applies to the dispute.

  • April 21, 2021

    Judge: Pennsylvania Liquidation Order Is Enforceable In New York Federal Court

    NEW YORK — A federal judge in New York on March 15 granted an insurer’s motion to stay a $49,346,803 judgment entered against it in a decades-old environmental contamination coverage dispute in light of a recent liquidation order, finding that Pennsylvania is a reciprocal state under the New York’s Uniform Insurers Liquidation and, therefore, the liquidation order is enforceable and warrants staying the lawsuit.

  • April 16, 2021

    Insolvent Insurers, U.S. Jointly Move To Divide Subclass, Request $23M Judgment

    WASHINGTON, D.C. — A dispute subclass of insolvent insurers and the U.S. government on April 13 jointly moved to divide a dispute subclass into two subclasses and requested that the U.S. Court of Federal Claims enter a $23,301,140.37 judgment in favor of the newly created subclass in the insurers’ lawsuit seeking declaratory judgment that the government owes them millions of dollars under the Patient Protection and Affordable Care Act (ACA) risk-corridor program.

  • April 12, 2021

    COMMENTARY: Reinsurer Coverage Of Cedent’s Bad Faith

    By Robert M. Hall

  • April 14, 2021

    Bermuda Reinsurer Renews Motion To Dismiss ERISA Case For Lack Of Jurisdiction

    WASHINGTON, D.C. — A Bermuda reinsurance and insurance company argues in an April 12 renewed motion to dismiss that an Employee Retirement Income Security Act lawsuit seeking damages for the company’s alleged failure to make $934 million in withdrawal liability payments to a pension plan must be dismissed because the reinsurer is not subject to general jurisdiction of the U.S. District Court for the District of Columbia.

  • April 14, 2021

    Parties Dismiss Life Insurance Premium, Reinsurance Dispute Following Settlement

    CEDAR RAPIDS, Iowa — Following a settlement in a suit filed in Iowa federal court by a trustee for an irrevocable trust who claimed that a life insurer substantially increased its costs on universal life insurance policies and imposed monthly deduction rate increases to recover prior losses from reinsurance transactions, the parties on April 9 filed a stipulation dismissing the suit with prejudice and with each side bearing their own costs.

  • April 14, 2021

    Panel Says Trial Court Should Have Stayed, Rather Than Dismiss, Reinsurance Suit

    LINCOLN, Neb. — A Nebraska trial court erred in dismissing a food production company’s suit arising out of a dispute over a workers’ compensation reinsurance participation agreement (RPA), the Nebraska Court of Appeals said April 6 in reversing and remanding the trial court’s dismissal after determining that the trial court should have stayed the suit, rather than dismissing it, to allow the insured to determine whether New York is an available forum for the suit.

  • April 14, 2021

    Bench Trial Scheduled In Breach Of Fiduciary Duty, Reinsurance Dispute

    STATESVILLE, N.C. — A North Carolina federal judge on April 5 rescheduled a bench trial for June 14 in a dispute over whether a third-party health insurance administrator breached its fiduciary duties under the Employee Retirement Income Security Act by failing to process and pay a health plan participant’s expenses when the expenses could not be claimed under a reinsurance policy.

  • April 14, 2021

    Insurer Says Reinsurer Breached Contract By Refusing To Pay Asbestos Billings

    PHILADELPHIA — A reinsurer breached certificates of facultative reinsurance by failing to pay more than $800,000 in billings submitted by an insurer for the settlement of underlying asbestos bodily claims paid by the insurer on behalf of an insured, the insurer claims in an April 8 complaint filed in Pennsylvania state court.