Mealey's Reinsurance

  • May 02, 2019

    English Court: Losses Cannot Be Allocated Under Reinsurance Policy Of Choice

    LONDON — The England and Wales Court of Appeal ruled April 17 that an insurer cannot allocate asbestos-related losses to its choice of reinsurance policy (Equitas Insurance Ltd. v. Municipal Mutual Insurance Ltd., No. A4/2017/1278, England and Wales App.).

  • May 02, 2019

    Parties In Reinsurance Case Over Mine Damages Debate If Stocks Were Held In Trust

    SPRINGFIELD, Ill. — An insurance fund and a railroad company filed supplemental briefs on April 24 with an Illinois federal court to address whether shares of stock were held in a resulting trust to support claims for alter-ego and de facto merger with regard to payment for mine subsidence damages in their reinsurance coverage dispute (Illinois Mine Subsidence Insurance Fund v. Union Pacific Railroad Co., No. 17-3199, C.D. Ill.).

  • April 30, 2019

    Insurer Indicates Intent To Appeal Adverse Rulings In Dispute With Reinsurer

    SYRACUSE, N.Y. — An insurer filed a notice of appeal on April 29 regarding a New York federal judge’s ruling that a reinsurer is not liable for any additional monies to an insurer under a 1973 facultative reinsurance certificate (Utica Mutual Insurance Co. v. Munich Reinsurance America Inc., No. 12-00196, Munich Reinsurance America Inc. v. Utica Mutual Insurance Co., No. 13-00743, N.D. N.Y.).

  • April 30, 2019

    Bermuda Reinsurer Seeks Dismissal Of Former Employee’s Breach Of Contract Case

    BOSTON — A Bermuda reinsurance investment company and an affiliated company on April 29 moved to dismiss a former employee’s breach of contract lawsuit filed in Massachusetts federal court over an alleged failure to make incentive payments of $7.45 million because the employment agreement is subject to Bermuda court jurisdiction (Alissa Fredricks v. Markel CATCo Investment Management Ltd., et al., No. 19-10331, D. Mass.).

  • April 29, 2019

    Justice Selects Umpire For Reinsurers, Insurer’s Dispute Over Asbestos Losses

    NEW YORK — A New York justice on Feb. 19 appointed an attorney as umpire for an arbitration dispute between an insurer and reinsurers concerning a $1.47 million demand arising out of asbestos losses (Enstar EU Ltd., et al. v. National Union Fire Insurance Company of Pittsburgh, Pa., No. 654089/2018, N.Y. Sup., New York Co., 2019 N.Y. Misc. LEXIS 1902).

  • April 29, 2019

    Judge Approves Schedule Changes In Reinsurance Participation Agreement Case

    SACRAMENTO, Calif. — A California federal judge on April 25 approved a proposal for modification to schedules in two putative class actions over a reinsurance participation agreement (RPA) entered into by hundreds of California businesses when they bought a workers’ compensation program (Shasta Linen Supply Inc. v. Applied Underwriters Inc., et al., No. 16-158, Pet Food Express Ltd., et al. v. Applied Underwriters Inc., et al., No. 16-1211, E.D. Calif.).

  • April 29, 2019

    Judge Declines To Dismiss Or Arbitrate Implied Contract Claim Against Reinsurers

    WASHINGTON, D.C. — A District of Columbia federal judge on April 26 denied a request by reinsurers to dismiss or arbitrate a financial service company’s amended complaint concerning their breach of an implied-in-fact contract dispute over a $26 million arbitration award because there was no express agreement (Vantage Commodities Financial Services I, LLC v. Assured Risk Transfer PCC, LCC, et al., No. 17-01451, D. D.C., 2019 U.S. Dist. LEXIS 70417).

  • April 29, 2019

    Health Aides Amend Complaint Over Captive Insurance, Reinsurance Scheme

    BROOKLYN, N.Y. — Home health aides filed a first amended class action complaint on April 24 in a New York federal court, alleging that their employers’ captive insurance and reinsurance scheme cheated them 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.).

  • April 26, 2019

    Businessman Seeks Dismissal Of Hedge Funds’ Liquidators’ 2nd Amended Complaint

    NEW YORK — A businessman argues in an April 23 motion filed in a New York federal court that two hedge funds’ liquidators failed to “present a coherent narrative” to support a “guilt by association approach” to allegations in connection “with one of the most spectacular hedge fund collapses” (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • April 26, 2019

    Reinsurance Agreements’ Arbitration Clause Is Null And Void, Insurer Argues

    SAN JUAN, Puerto Rico — An insurer tells a Puerto Rico federal court on April 23 to deny a request by reinsurers to dismiss or compel arbitration of the insurer’s lawsuit regarding hurricane losses because the arbitration clause is invalid and unenforceable under Puerto Rico law (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).

  • April 25, 2019

    Farmers: Federal Agencies Liable For Loss Of Revenue Protection For Crop Insurance

    DETROIT — A putative class of dry bean farmers argues to a Michigan federal court in an April 22 response that crop insurers and the federal agencies that reinsure them are liable to them for loss of revenue protection in 2015 because the federal agencies failed to use the actual market price as the harvest price to provide revenue protection under a dry bean revenue endorsement (DBRE) (Gregory Ackerman, et al. v. U.S. Department of Agriculture, et al., No. 17-11779, E.D. Mich.).

  • April 25, 2019

    Judge: No Transfers To Support Reinsurer’s Request For Recovery Of Proceeds

    SAN DIEGO — A California federal judge granted summary judgment on April 22 to defendants regarding a reinsurer’s claim seeking recovery of proceeds from avoidable transfers in a case over a $3.2 million judgment because discovery showed that no transfers occurred (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al., No. 16-3038, S.D. Calif., 2019 U.S. Dist. LEXIS 68950).

  • April 25, 2019

    Judge Approves Settlement, Reinsurance Commutation For Insurer In Liquidation

    CONCORD, N.H. — A New Hampshire trial judge recently approved a $27 million settlement between the liquidator of The Home Insurance Co. and federal government claimants as well as a separate reinsurance commutation agreement in the amount of $1.3 million between the liquidator and a reinsurer (In the matter of the liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).

  • April 23, 2019

    New York Federal Judge Dismisses Run-Off Insurer’s RICO, Fraud Claims

    NEW YORK — In an opinion setting forth reasons for a “bottom-line” order, a New York federal judge held April 22 that a run-off insurer’s claims for violation of the Racketeer Influenced and Corrupt Organizations (RICO) Act are barred under Section 107 of the Private Securities Litigation Reform Act (RICO Amendment) (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-6658, S.D. N.Y., 2019 U.S. Dist. LEXIS 67952).

  • April 23, 2019

    Underwriters, Insurers Tell Court Of Joint Stipulation To Dismiss Reinsurance Dispute

    BALTIMORE — A Maryland federal judge received a joint stipulation of dismissal on April 22 from underwriters subscribing to a facultative reinsurance certificate and insurers with regard to the dispute seeking a declaration that a reinsurance contract is void ab initio (Certain Interested Underwriters at Lloyd’s London, subscribing to the facultative reinsurance certificate 2017100003409 v. American Casualty Company of Reading, Pa., et al., No. 18-02972, D. Md.).

  • April 22, 2019

    2nd Circuit Vacates Ruling On Reinsurer’s Liability For $5M Arbitration Award

    NEW YORK — An agreement between an insurer and a steel maker does not establish a reinsurer’s liability to pay a $5 million arbitration award, the Second Circuit U.S. Court of Appeals held April 18, vacating a lower court’s ruling granting enforcement of the award against the reinsurer (National Indemnity Co., et al. v. IRB Brasil Resseguros S.A., No. 18-534, 2nd Cir., 2019 U.S. App. LEXIS 11284).

  • April 18, 2019

    Leave To File Renewed Class Certification Motion Denied In Workers’ Comp Insurance Cases

    SACRAMENTO, Calif. — A California federal judge on April 17 denied leave to file a renewed motion for class certification in consolidated cases over a reinsurance participation agreement (RPA) entered into by businesses when buying a workers’ compensation program because there was no reason for why the class definition could not have been initially sought (Shasta Linen Supply Inc. v. Applied Underwriters Inc., et al., No. 16-158, Pet Food Express Ltd., et al. v. Applied Underwriters Inc., et al., No. 16-1211, E.D. Calif., 2019 U.S. Dist. LEXIS 65807).

  • April 18, 2019

    Reinsurers Seek Dismissal Or Arbitration Of Dispute Over $26M Award

    WASHINGTON, D.C. — In their March 8 reply brief, reinsurers raise failure to state a claim and timeliness as reasons that a District of Columbia federal judge should dismiss or arbitrate a financial service company’s amended complaint concerning their breach of an implied-in-fact contract dispute over a $26 million arbitration award (Vantage Commodities Financial Services I, LLC v. Assured Risk Transfer PCC, LCC, et al., No. 17-01451, D. D.C.).

  • April 15, 2019

    COMMENTARY: So What Is An Arbitration “Reasoned Award” Anyway?

    By Robert M. Hall

  • April 17, 2019

    Plaintiffs Seek Consolidation Of Related Securities Class Actions Against Reinsurer

    CAMDEN, N.J. — An investor group and a pension trust filed motions on April 12 to consolidate related New Jersey federal court securities class actions against a reinsurance company and former executive officers as well as each seeking appointment as lead plaintiff over allegations of misrepresentation in underwriting and risk management techniques and a reinsurance portfolio’s risk (Michael Wigglesworth v. Maiden Holdings Ltd., et al., No. 19-05296, D. N.J.).

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