Mealey's Reinsurance
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December 31, 2019
Judge Dismisses Insured’s Third-Party Complaint Against Reinsurers
SAN JUAN, Puerto Rico — A federal judge in Puerto Rico on Dec. 27 dismissed an insured’s third-party complaint against reinsurers regarding allegations of breaches to reinsurance agreements and denied the insured’s motion to dismiss an insolvent insurer’s main action against the insured (Integrand Assurance Co. v. Puma Energy Caribe, LLC; Puma Energy Caribe, LLC v. Everest Reinsurance Co., et al., No. 19-1195, D. Puerto Rico, 2019 U.S. Dist. LEXIS 221766).
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December 31, 2019
Judge Denies Liquidator’s Bid To Stay Arbitration With Reinsurers Over $150M Loss
SAN JUAN, Puerto Rico — Without explanation, a Puerto Rico federal judge on Dec. 26 denied an insolvent insurer’s liquidator’s motion alter or amend a ruling in order to stay arbitration proceedings in a case over $150 million in losses from two hurricanes against its reinsurers (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).
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December 23, 2019
City, Employees Argue For Judgment On Pleadings In Sexual Misconduct Lawsuits
JASPER, Ala. — The city of Jasper and employees on Dec. 19 moved for judgment on the pleadings in two Alabama federal court cases, which also name their insurer, over allegations by former jail inmates of sexual misconduct in a jail because the city’s civil service board is “not legally cognizable nor endowed with the ability to sue or be sued” (Whitley Goodson v. J.C. Poe, Jr., et al., No. 19-1399, Charity Tessener v. J.C. Poe, Jr., et al., No. 19-01314, N.D. Ala.).
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December 23, 2019
Insurers Dismiss Investment Bank From Third-Party Case Over Fraudulent Scheme
NEW YORK — Insurers in a Dec. 20 stipulation of dismissal tell a New York federal court that they voluntarily dismiss third-party claims against a multinational investment bank and financial services company in a dispute arising out of a receiver’s lawsuit seeking redress for damages from of a “massive fraudulent scheme” involving hedge funds (In re Platinum-Beechwood Litigation, No. 18-6658, Washington National Insurance Co., et al. v. Mark Nordlicht, et al., No. 18-12018, S.D. N.Y.).
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December 23, 2019
Liquidator Seeks Stay Of Arbitration With Reinsurers Over $150M Hurricane Loss
SAN JUAN, Puerto Rico — An insolvent insurer’s liquidator in a Dec. 21 motion asks that a Puerto Rico federal judge alter or amend his ruling to stay arbitration proceedings in a case over $150 million in losses from two hurricanes against its reinsurers until a stay in the insurer’s liquidation order is lifted (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).
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December 20, 2019
U.S. Government Appeals Ruling On Offsetting Insolvent Insurer’s Debt Under ACA
WASHINGTON, D.C. — The U.S. government said on Dec. 19 that it is appealing to the Federal Circuit U.S. Court of Appeals a federal judge’s finding that Colorado insurance liquidation law bars its health agency from using money owed to an insolvent Colorado insurer to pay debts owed under the Patient Protection and Affordable Care Act’s (ACA) reinsurance and risk-adjustment programs (Michael Conway v. The United States, No. 18-1623, Fed. Clms., 2019 U.S. Claims LEXIS 1306).
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December 19, 2019
Co-Trustees: Insurer’s Cost Increase Was Due In Part To Reinsurance Transactions
MIAMI — A life insurer “imposed a sudden and massive increase in the cost” of a trust’s two universal life insurance policies after orchestrating “a series of captive reinsurance transactions” for the benefit of a corporate parent, co-trustees allege in a Dec. 3 complaint filed in a Florida federal court (Michael Foster, et al. v. Transamerica Life Insurance Co., No. 19-24969, S.D. Fla.).
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December 19, 2019
Judge Stays Insured’s Case Against Insurer, Reinsurer Based On Restraining Order
BRIDGEPORT, Conn. — A federal judge in Connecticut on Dec. 16 stayed an insured’s dispute against an insurer, a reinsurer and their affiliates over alleged violations in workers’ compensation insurance programs based upon a conservation order issued against the insurer (Charter Oak Oil Co. Inc. v. Applied Underwriters Inc., et al., No. 17-00689, D. Conn.).
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December 18, 2019
Liquidators Oppose Dismissal Of Claims Against Corporate Insider In 2 Separate Lawsuits
NEW YORK — Liquidators of hedge funds argue in a Dec. 16 motion filed in a New York federal court that allegations in two lawsuits involving a runoff insurer that concern a hedge fund scheme and the misuse and mismanagement show that a defendant “is a corporate insider with direct involvement in day-to-day affairs for the purposes of the group pleading doctrine” (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936; Melanie L. Cyganowski, et al. v. Beechwood Re Ltd., et al., No. 18-12018, S.D. N.Y.).
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December 17, 2019
Judge Declines To Revisit Dismissal Of Case Against Crop Insurers, Federal Agencies
DETROIT — A federal judge in Michigan on Dec. 16 refused to reconsider his decision to dismiss farmers’ putative class action against crop insurers and the federal agencies that reinsure crop insurers because he addressed the concerns raised in the farmers’ motion for reconsideration particularly concerning the recommendation of 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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December 17, 2019
Judge Certifies Appeal Over Stay Of Asbestos Coverage Case Between Insurer, Insured
CINCINNATI — A federal judge in Ohio on Dec. 16 certified an insurer’s interlocutory appeal regarding the judge’s previous order staying an insured’s breach of contract and bad faith suit arising out of the insured’s liability for underlying asbestos claims (William Powell v. National Indemnity Co. et al., No. 14-807, S.D. Ohio, 2019 U.S. Dist. LEXIS 215554).
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December 17, 2019
Reinsurer Opposes Insurer’s Motion To Confirm 2nd Award Over Asbestos Claims Billings
CHICAGO — A reinsurer argues in a Dec. 13 brief that an Illinois federal court should not confirm a second award reversing parts of a first award over reinsurance billings for asbestos claims under five out of six contracts but should confirm the first award and part of the second award resolving the dispute under the sixth contract (Allstate Insurance Co. v. Amerisure Mutual Insurance Co., No. 19-4341; Amerisure Mutual Insurance Co. v. Allstate Insurance Co., No. 19-7080, N.D. Ill.).
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December 16, 2019
Reinsurer’s Motion To Intervene In $3.2M Dispute Was Untimely, Creditor Tells 9th Circuit
SAN FRANCISCO — A judgment creditor tells the Ninth Circuit U.S. Court of Appeals in a Dec. 13 brief that a reinsurer’s motion to intervene was untimely in its dispute over a $3.2 million judgment and that the reinsurer lacked the “requisite legal interest to support intervention” (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al. v. Knight Insurance Company Ltd., Nos. 19-55346, 19-55347 & 19-55423, 9th Cir.).
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December 13, 2019
Insured Settled Claims Over Financial Conflict Of Interest In Denial Of ERISA Benefits
BOSTON — A federal judge in Massachusetts said Dec. 12 that an insured settled his allegations that two insurers who are parties to an administration agreement and a reinsurance agreement engaged in a financial conflict of interest with regard to the denial of his long-term disability benefits under the Employee Retirement Income Security Act (Gary D. Powers v. Northwestern Mutual Life Insurance Co., et al., No. 19-11335, D. Mass.).
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December 13, 2019
Insured Opposes Reinsurer’s Request To Stay Case Due To Insurer’s Restraining Order
BRIDGEPORT, Conn. — In response to a conservation order against an insurer, an insured argues on Dec. 12 that a Connecticut federal judge should deny a stay of its dispute against the insurer, a reinsurer and their affiliates over alleged violations in workers’ compensation insurance programs (Charter Oak Oil Co. Inc. v. Applied Underwriters Inc., et al., No. 17-00689, D. Conn.).
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December 13, 2019
Reinsurer Seeks To Confirm $2.4M Arbitration Award After Clarification On Remand
NEW YORK — Following clarification by arbitrators on a final award, a reinsurer filed an unopposed motion on Dec. 11 to reopen a dispute with an insurer in New York federal court, seeking to confirm a $2.4 million arbitration award (Park Avenue Life Insurance Co. v. Allianz Life Insurance Company of North America, No. 19-1089, S.D. N.Y.).
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December 11, 2019
3rd Circuit Upholds Compelling Of Arbitration In Reinsurance Dispute
PHILADELPHIA — A Pennsylvania federal judge did not err in sending a consolidation question to a new panel of arbitrators instead of the previous panel, the Third Circuit U.S. Court of Appeals affirmed Dec. 6 in a reinsurance coverage dispute over lead paint losses arising in the Maryland area (Pennsylvania National Mutual Casualty Insurance Co. v. New England Reinsurance Corp., et al., No. 19-1805, 3rd Cir., 2019 U.S. App. LEXIS 36388).
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December 10, 2019
Joint Risk Pool Seeks $2.65M For Reinsurers’ Breach Of Contract
MISSOULA, Mont. — A joint risk pool for an association of Montana counties sued its reinsurers in Montana federal court on Dec. 5, seeking $2.65 million for the reinsurers’ breach of contract when it refused to pay a settled liability claim (Montana Association of Counties Property and Casualty Trust v. Certain Underwriters at Lloyds, No. 19-196, D. Mont.).
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December 10, 2019
Judge Dismisses Part Of Runoff Insurer’s Claims In Ponzi Scheme Dispute
NEW YORK — A federal judge in New York on Dec. 5 dismissed a runoff insurer’s claims for civil conspiracy, contribution and indemnity and unjust enrichment against an investment bank and a financial services company because the runoff insurer failed to assert sufficient allegations to support them in a dispute concerning the investment of $320 million in a failed Ponzi scheme; however, the judge allowed aiding and abetting claims to survive (In re Platinum-Beechwood Litigation, No. 18-6658, Senior Health Insurance Company of Pennsylvania v. Lincoln International LLC, et al., No. 19-07137, S.D. N.Y., 2019 U.S. Dist. LEXIS 210412).
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December 09, 2019
Judge Compels Liquidator To Arbitrate $150M Hurricane Loss Case Against Reinsurers
SAN JUAN, Puerto Rico — A federal judge in Puerto Rico on Dec. 4 dismissed an insolvent insurer’s dispute over $150 million in losses from two hurricanes against its reinsurers and ordered the parties to proceed to arbitration pursuant to the clauses in the reinsurance contracts (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).