Mealey's Reinsurance
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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).
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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.).
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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).
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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.).
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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.).
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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).
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April 25, 2019
Farmers: Federal Agencies Liable For Loss Of Revenue Protection For Crop Insurance
DETROIT — A putative class of dry bean farmers argue 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.).
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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).
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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.).
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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).
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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.).
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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).
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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).
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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.).
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April 15, 2019
COMMENTARY: So What Is An Arbitration “Reasoned Award” Anyway?
By Robert M. Hall
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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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April 17, 2019
Judge To Hear Continuance Request In Case Against Farmer Over Reinsured Crops
LEXINGTON, Ky. — A Kentucky federal judge on April 15 ordered a hearing to address a joint motion to continue a jury trial in the U.S. government’s case against a farmer accusing him of fraudulently submitting statements to a government agency that reinsures his crops (United States v. Keith Foley, No. 18-cr-00154, E.D. Ky.).
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April 16, 2019
Insurer Opposes Reinsurer’s Demand For Arbitration Of Hurricane Loss Dispute
SAN JUAN, Puerto Rico — In its surreply, an insurer asks in an April 12 surreply that a Puerto Rico federal judge reject a reinsurer’s motion to dismiss or compel arbitration of the insurer’s lawsuit regarding hurricane losses, citing its potential rehabilitation proceedings (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).
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April 16, 2019
Self-Insured Association, Reinsurer File Replies To Summary Judgment Motions
TAMPA, Fla. — In separate April 11 reply briefs in a breach of contract dispute in Florida federal court, a Florida self-insured intergovernmental risk management association argues that a reinsurer “cherry picked” legal statements from cited cases while the reinsurer says the self-insured association’s coverage standard is “disingenuous and incorrect” (Public Risk Management of Florida v. Munich Reinsurance America Inc., No. 18-1449, M.D. Fla.).
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April 12, 2019
Judge Denies Damages Cap In Breach Of Duty Case To Reinsurance Trust For Insurer
COLUMBIA, S.C. — A South Carolina federal judge on April 11 denied a bank’s motion for partial summary judgment seeking an imposed cap on damages in a dispute over the bank’s alleged breach of duties as trustee of a reinsurance trust for an insolvent insurer (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C., 2019 U.S. Dist. LEXIS 62308).