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Mealey's Reinsurance

  • March 5, 2019

    Judge Denies Judgment To Bank On Claims Over Role For Reinsurance Trust

    COLUMBIA, S.C. — A South Carolina federal judge held Feb. 28 that claims arising from a bank’s breach of duties as trustee of a reinsurance trust for an insolvent insurer are timely (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).

  • February 25, 2019

    Bank, Insurer Dismiss Breach Of Contract Case Against Underwriters

    NEW YORK — A bank and an insurer on Feb. 21 voluntarily dismissed without prejudice their New York federal court lawsuit accusing underwriters of breaching a reinsurance contract regarding coverage for alleged breaches of securities lending agreements (Wells Fargo Bank N.A., et al. v. Lloyd’s Syndicate AGM 2488, et al., No. 18-12122, S.D. N.Y.).

  • February 25, 2019

    Railroad Company Seeks Judgment On Alter-Ego Claim In Reinsurance Case

    SPRINGFIELD, Ill. — In a reinsurance coverage dispute over payment for mine subsidence damages, a railroad company argues in a Feb. 20 brief that an Illinois federal court should grant it summary judgment on alter-ego and de facto merger claims (Illinois Mine Subsidence Insurance Fund v. Union Pacific Railroad Co., No. 17-3199, C.D. Ill.).

  • February 25, 2019

    Promissory Note Maker Objects To Recommendation Denying Class Certification

    LINCOLN, Neb. — In a dispute over a promissory note executed pursuant to a reinsurance participation agreement (RPA), the promissory note maker on Feb. 20 filed an objection to a Nebraska magistrate judge’s recommendation to deny class certification and asks that its proposed New Jersey class be certified (Applied Underwriters Inc. v. Top’s Personnel Inc., No. 15-90, D. Neb.).

  • February 21, 2019

    Investment Companies Seek Dismissal Of RICO Claim In Alleged Reinsurance Scheme

    KANSAS CITY, Kan. — In a dispute over an alleged reinsurance scheme, investment companies assert in Feb. 19 reply briefs to a Kansas federal court that an investor’s claims for violations of the Racketeer Influenced and Corrupt Organizations Act and unjust enrichment should be dismissed (Albert Ogles v. Security Benefit Life Insurance Co., et al., No. 18-02265, D. Kan.).

  • February 20, 2019

    Federally Reinsured Crop Insurer: Noncompete Provision Is Enforceable

    OMAHA, Neb. — A federally reinsured crop insurer says in a Feb. 18 reply brief that a Nebraska federal judge was correct to find that a former employee’s noncompete provision in an assignment, nonsolicitation and nondisclosure agreement was enforceable under Nebraska law (Farm Credit Services of America FLCA v. Kathy Mens, No. 19-14, D. Neb.).

  • February 19, 2019

    Panel Upholds Dismissal Of Case Over Reinsurance Participation Agreement

    LINCOLN, Neb. — An insurer failed to establish that a Nebraska court had personal jurisdiction to hear a dispute over its workers’ compensation program and amounts owed under a reinsurance participation agreement (RPA) because an insured was a California corporation with California employees, a Nebraska appeals panel ruled Feb. 12 (Applied Underwriters Captive Risk Assurance Company Inc. v. E.M. Pizza Inc., No. A-17-1301, Neb. App., 2019 Neb. App. LEXIS 45).

  • February 15, 2019

    Employers, Reinsurer Say They Will Seek Dismissal Of Class Action Lawsuit

    BROOKLYN, N.Y. — Employers and a reinsurer of an employee benefit plan on Feb. 14 tell a New York federal judge that they intend to seek dismissal of home health aides’ class action complaint over allegations they were cheated 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.).

  • February 15, 2019

    Reinsurers Say Motion To Dismiss Is Not Improper ‘Third Bite At The Apple’

    WASHINGTON, D.C. — In a District of Columbia federal court dispute over a $26 million arbitration award, reinsurers assert in a Feb. 13 brief that their motion to dismiss a financial service company’s amended complaint is not an improper “third bite at the apple” despite concerning issues raised in their prior opposition to a motion for leave to amend (Vantage Commodities Financial Services I, LLC v. Assured Risk Transfer PCC, LCC, et al., No. 17-01451, D. D.C.).

  • February 14, 2019

    Hedge Fund Liquidators: Specific Allegations Exist In Fraud, Conspiracy Case

    NEW YORK — In their fraud and conspiracy lawsuit, liquidators for two hedge funds tell a New York federal court in a Feb. 11 brief that they have asserted specific allegations to withstand motions to dismiss their amended complaint claiming that funds with a net asset value of nearly $1 billion turned out not only to be insolvent but also to have liabilities between $400 million and $800 million (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • February 14, 2019

    Mediation Ordered In Breach Of Contract Case Over Trust’s Role For Insolvent Insurer

    COLUMBIA, S.C. — In a breach of contract and breach of fiduciary duty lawsuit against a bank sued for its role as trustee of a reinsurance trust for an insolvent insurer, a federal magistrate judge in South Carolina on Feb. 12 ordered all parties to conduct mediation (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).

  • February 7, 2019

    COMMENTARY: Vacating The Orders Of Arbitration Panels – Did The Arbitrators Exceed Their Powers?

    By Robert M. Hall

  • February 13, 2019

    Parties Seek Dismissal Of RICO Case Over Alleged Kickbacks Of Reinsurance Premiums

    TRENTON, N.J. — Three defendants in separate motions filed Feb. 8 seek to dismiss based upon the filed-rate doctrine a New Jersey federal court case concerning allegations of violations of the Racketeer Influenced and Corrupt Organizations Act based on a lender-placed insurance (LPI) scheme involving the use of kickbacks, including reinsurance premiums (Edward Leo v. Nationstar Mortgage LLC of Delaware, et al., No. 17-05839, D. N.J.).

  • February 12, 2019

    Securities Class Action Filed Against Reinsurer Over Misleading Statements

    CAMDEN, N.J. — A securities class action alleging misrepresentation in underwriting and risk management techniques and a reinsurance portfolio’s risks, was filed Feb. 11 in a New Jersey federal court against a reinsurance company and former executive officers by a plaintiff seeking to represent purchasers of the reinsurer’s common stock and seeking to pursue remedies under the Securities Exchange Act of 1934 (Michael Wigglesworth v. Maiden Holdings Ltd., et al., No. 19-05296, D. N.J.).

  • February 12, 2019

    Federally Reinsured Crop Insurer’s Preliminary Injunction Opposed

    OMAHA, Neb. — A former employee for a federally reinsured crop insurer tells a Nebraska federal judge in a Feb. 8 opposition brief that an injunction for alleged breach of an employment agreement is not warranted because a noncompete agreement is overbroad and unenforceable (Farm Credit Services of America FLCA v. Kathy Mens, No. 19-14, D. Neb.).

  • February 12, 2019

    Insurance Agency, Agent Seek Documents By Trustees In Disparagement Case

    TULSA, Okla. — In a lawsuit over alleged disparagement to a self-insurance products distributor during the promotion of a competitor’s products to school districts, an insurance agency and agent in a Feb. 8 motion ask an Oklahoma federal court to compel the trustees of Oklahoma School Risk Management Trust (OSRMT) to produce certain documents (The Sandner Group – Alternative Risk Solutions Inc. v. BancFirst Insurance Services Inc., et al., No. 18-0265, N.D. Okla.).

  • February 8, 2019

    Insurer Asserts Defenses To Reinsurer’s Breach Of Contract Counterclaim

    PORTLAND, Ore. — In an Oregon federal court lawsuit seeking recovery of $1.8 million for losses from medical claims, a health insurer in a Feb. 6 answer asserts affirmative defenses in response to a reinsurer’s counterclaims for breach of contract and unjust enrichment (Moda Health Plan Inc. v. Swiss Re Life & Health America Inc., No. 18-01917, D. Ore.).

  • February 7, 2019

    Investors Seek Dismissal Of Fraud, Conspiracy Case From Hedge Fund Liquidators

    NEW YORK — In 11 motions filed Feb. 4, parties argue under a theory of impermissible group pleading that a New York federal court should dismiss a fraud and conspiracy lawsuit filed by liquidators for two hedge funds over allegations that the funds with a net asset value of nearly $1 billion turned out not only to be insolvent but also to have liabilities between $400 million and $800 million (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • February 7, 2019

    Reinsurer Denies Breach Of Contract Claim Over Excessive Force Settlement

    SEATTLE — In a Washington federal court, a reinsurer on Feb. 6 denied allegations that it breached a contract with an association of Washington public entities regarding settlement of an underlying lawsuit over police officers’ alleged excessive force (Washington Cities Insurance Authority v. Ironshore Indemnity Inc., No. 19-00054, W.D. Wash.).

  • February 7, 2019

    Reinsurers Accused Of Seeking To Relitigate Issues In $26M Arbitration Dispute

    WASHINGTON, D.C. — In opposing reinsurers’ motion to dismiss, a financial service company argues to a District of Columbia federal court on Feb. 6 that the reinsurers seek to relitigate the same issues previously decided in its favor, “not once but twice” in their 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., 2019 U.S. Dist. LEXIS 8059).