Mealey's Reinsurance

  • January 05, 2022

    Reconsideration Sought On Interference, Illinois Bad Faith Claims In Reinsurance Row

    CHICAGO — Citing “newly discovered evidence” and claiming “a manifest error of law” in the suit over reinsurance claims, an insurer on Jan. 3 asked an Illinois federal judge to reconsider and clarify parts of a dismissal order related to its claims of bad faith refusal to pay under the Illinois Insurance Code and tortious interference with contracts.

  • December 30, 2021

    Bifurcation Argued In Mortgagors’ RESPA Claims Suit Over Captive Reinsurance

    FRESNO, Calif. — Pretrial wrangling in a long-running class action over captive reinsurance agreements continued between Dec. 16 and Dec. 23 in a California federal court, with the parties disputing whether the trial should be bifurcated into liability and damages phases and filing arguments and responses regarding pending motions to decertify the class and to strike allegedly untimely evidence.

  • December 30, 2021

    Abandoning Bellefonte, 2nd Circuit Affirms Defense Costs Follow-Form Ruling

    NEW YORK — The follow-form clauses in disputed facultative reinsurance certificates require the reinsurer to pay its proportionate share of an insurer’s defense costs in excess of liability limits, a Second Circuit U.S. Court of Appeals panel affirmed Dec. 28, saying a New York Court of Appeals ruling rendered two previous cases that are inconsistent with standard rules of contract interpretation “no longer valid law in our circuit.”

  • December 28, 2021

    Jury Selection Set In Aiding, Abetting Lawsuit Over Hedge Funds Collapse

    NEW YORK — A New York federal judge has scheduled jury selection for May 2 in an aiding and abetting lawsuit over the collapse of hedge funds, the court docket shows.

  • December 28, 2021

    En Banc Court Upholds Denial Regarding Asset Allocation Under Pennsylvania Law

    HARRISBURG, Pa. — Overruling exceptions filed by the statutory liquidator, a Pennsylvania court ruling en banc on Dec. 22 reaffirmed a panel decision denying authorization to allocate assets from insolvent insurers’ estates to pay policyholder claims for benefits that exceed applicable statutory guaranty association limits and accrue more than 30 days after the insurance policies were terminated by the liquidations.

  • December 28, 2021

    Settlement In Principle Reached In Reinsurance Suit Over Asbestos Claims

    DETROIT — The parties in a reinsurance dispute over asbestos claims have reached a settlement in principle following mediation with a special master, according to a Dec. 22 stipulated order filed in a Michigan federal court.

  • December 22, 2021

    Reinsurer:  9th Circuit Allows Citizenship Pleading ‘On Information And Belief’

    SAN DIEGO — The plaintiff in a case over a debt allegedly owed under a series of reinsurance agreements on Dec. 20 sought leave from a California federal judge to amend its complaint to allege diversity jurisdiction “on information and belief,” citing a lack of information in the public record.

  • December 20, 2021

    Captive Insurer In Misconduct Settlement Reinsurance Row: Requests Weren’t ‘Claims’

    FLINT, Mich. — Seeking partial judgment on the pleadings in a suit over an indemnification demand arising from a $9.25 million settlement of sexual misconduct claims, a captive insurer on Dec. 15 told a Michigan federal court that a student’s 2013 requests were not claims under the terms of the reinsurance policy “because they did not seek relief ‘for a Wrongful Act.’”

  • December 17, 2021

    Reinsurer Challenges Parts Of Amended Breach, Bad Faith Complaint Under State Laws

    DETROIT — Neither state law that might apply allows denial of a claim for coverage as a basis for a claim of bad faith, a reinsurer argues in its Dec. 14 motion in a Michigan federal court to strike portions of a newly amended complaint; the reinsurer also seeks to strike extra-contractual relief that an insurer seeks with respect to a breach of contract claim.

  • December 16, 2021

    Bankruptcy Judge Recognizes Foreign Main Proceedings Involving Reinsurer

    NEW YORK — A New York federal bankruptcy judge on Nov. 4 granted recognition of pending foreign main provisional liquidation proceedings and proposed reorganization proceedings to four related Bermuda entities including a reinsurer.

  • December 16, 2021

    LLC Alleges Misrepresentation Over Losses From Fund That Collateralized Reinsurance

    FORT MYERS, Fla. — An LLC sued former Markel CATCo Investment Management Limited CEO Anthony “Tony” Belisle in a Florida federal court on Dec. 3, alleging fraudulent inducement and negligent misrepresentation in connection with its “losses of nearly $20 million” from a fund “tied to the reinsurance business operated by Markel CATCo Reinsurance Limited.”

  • December 15, 2021

    Parties In Reinsurance Row Agree To Strike Punitive Damages From Pleadings

    DETROIT — The parties in a breach of contract suit over reinsurance certificates have agreed to take punitive damages off the table; they informed a Michigan federal judge in a Dec. 13 stipulation shortly after Amerisure Mutual Insurance Co. filed its second amended complaint and Transatlantic Reinsurance Co. (TransRe) filed its answer.

  • December 15, 2021

    Mortgagors Move To Strike Info In RESPA Claims Suit Over Captive Reinsurance

    FRESNO, Calif. — Arguing that the information should have been produced many years earlier and that prior orders have rendered it irrelevant, the plaintiffs in a long-running suit over captive reinsurance agreements on Dec. 12 moved in a California federal court to strike from the record and preclude from trial any information on individual class member payment histories.

  • December 15, 2021

    COMMENTARY: Key U.S. Insurance Decisions, Trends, & Developments: In These Times Of ESG, Social Inflation, COVID-19, Cyber/Privacy, Civil Unrest, Opioids & Other Perils

    By Scott M. Seaman and Sarah Anderson  

  • December 14, 2021

    Georgia High Court:  Reversal Of Arbitration Award Under State Code Was Error

    ATLANTA — A Georgia Court of Appeals panel erred in reversing confirmation of a $462,781 arbitration award under the Georgia Arbitration Code in a dispute involving car dealerships and a reinsurer, the Georgia Supreme Court said in a unanimous Dec. 14 ruling, finding nothing that “supports a determination that the arbitrator intended to purposefully disregard applicable law.”

  • December 14, 2021

    4th Circuit Panel Hears Arguments In Appeals Over Insurance Bribery Convictions

    RICHMOND, Va. — Days before a Fourth Circuit U.S. Court of Appeals panel on Dec. 8 heard oral arguments in a multinational insurance and reinsurance management company’s founder and a company consultant’s challenge to their convictions related to a $2 million bribery scheme, the government filed a notice of supplemental authority asserting that four recent decisions support its arguments, and the appellants countered that those cases do not refute their arguments or can be distinguished.

  • December 13, 2021

    Ordinary Course Motion By Insurer’s Liquidators Denied In Federal Bankruptcy Court

    NEW YORK — A New York federal bankruptcy judge on Dec. 8 denied a request by the joint provisional liquidators (JPLs) of Bermuda insurer and reinsurer PB Life and Annuity Co. Ltd. (PBLA) and other debtors for an order approving the use, sale, transfer or other disposition of assets in the ordinary course of the debtors’ businesses.

  • December 10, 2021

    Jurisdictional Show Cause Order Filed In Dispute Over Debt That Followed Injunction

    SAN DIEGO — Saying that the court “cannot determine whether diversity has been adequately pled,” a California federal judge on Dec. 7 filed an order directing Odyssey Reinsurance Co. to show cause why its case over a debt allegedly owed under a series of reinsurance agreements should not be dismissed for lack of subject matter jurisdiction.

  • December 10, 2021

    Dismissal Of ERISA Suit Against Bermuda Reinsurer Recommended Over Jurisdiction

    WASHINGTON, D.C. — A District of Columbia federal magistrate judge issued a Dec. 7 report recommending dismissal of a lawsuit over a Bermuda insurance and reinsurance company’s alleged failure to make $934 million in withdrawal liability payments to a pension plan, finding that the plaintiffs did not establish that the company’s “contacts with the United States are so systematic and continuous as to render it essentially at home in this country.”

  • December 09, 2021

    Defendants Challenge Evidence In Mortgagors’ Trial-Bound RESPA Claims Suit

    FRESNO, Calif. — Defendants in a long-running class suit over captive reinsurance agreements on Dec. 2 moved in a California federal court to strike allegedly untimely evidence that mortgagors included in opposition to a pending motion to decertify the class; on Dec. 3, the defendants repeated the argument in a reply supporting decertification.

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