Mealey's Reinsurance

  • January 08, 2020

    7th Circuit Dismisses Appeal In Reinsurance Case Over Mine Damages

    CHICAGO — The Seventh Circuit U.S. Court of Appeals on Jan. 6 dismissed an insurance fund’s appeal of a ruling that the fund failed to show the application of an alter-ego exception to the general rule of no liability for a railroad company’s stockholder and failed to prove that a de facto merger occurred in its reinsurance dispute over payments for mine subsidence damages (Illinois Mine Subsidence Insurance Fund v. Union Pacific Railroad Co., No. 19-2965, 7th Cir.).

  • January 07, 2020

    Insurer Requests Court To Confirm 2nd Award Over Reinsurance Billings

    CHICAGO — Arbitrators intended their second award to be final and, thus, an Illinois federal court should confirm that award and not the interim award under the Federal Arbitration Act (FAA), an insurer argues in a Jan. 3 reply brief in its dispute with a reinsurer over billings for asbestos claims (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.).

  • January 07, 2020

    Reinsurer Seeks Reversal Of Order Denying Intervention In Creditor’s $3.2M Dispute

    SAN FRANCISCO — A reinsurer argues in a Jan. 3 reply that the Ninth Circuit U.S. Court of Appeals should reverse an order denying its motion to intervene in a dispute over a $3.2 million judgment and remand to allow the reinsurer to proceed with its claims against another reinsurer, which is the judgment creditor (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al. v. Knight Insurance Company Ltd., Nos. 19-55346, 19-55347, 19-55423, 9th Cir.).

  • January 06, 2020

    Judge Dismisses Partial Claims In 2 Cases Involving Runoff Insurer Against Corporate Insider

    NEW YORK — In two separate matters against a defendant, an alleged corporate insider, over misuse and mismanagement in a hedge fund scheme, a federal judge in New York on Jan. 2 dismissed hedge fund liquidators’ claims for civil conspiracy and violation of civil Racketeer Influenced and Corrupt Organization Act and dismissed a runoff insurer’s third-party claims for civil conspiracy and unjust enrichment (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., 2019 U.S. Dist. LEXIS 223443).

  • January 03, 2020

    Judge Closes Reinsurance Case Following Submission Of Unredacted Documents

    NEW YORK — Following the unredacted submission of all documents previously filed under seal, a federal judge in New York on Dec. 27 closed the litigation between a reinsurer and insurers concerning an arbitration award in favor of the reinsurer over losses under a second blanket casualty excess of loss reinsurance agreement (TIG Insurance Co. v. National Union Fire Insurance Company of Pittsburgh, PA, et al., No. 19-10238, S.D. N.Y.).

  • January 03, 2020

    Insurer Seeks Lift Of Stay On Order Compelling It, Reinsurer To Arbitrate

    HARRISBURG, Pa. — Following an affirmance by the Third Circuit U.S. Court of Appeals, an insurer in a Dec. 23 brief asks a Pennsylvania federal judge to lift a stay regarding an order compelling the insurer and its reinsurer to arbitrate their dispute over lead paint losses (Pennsylvania National Mutual Casualty Insurance Co. v. Everest Reinsurance Co., No. 18-mc-653, M.D. Pa.).

  • January 03, 2020

    Reinsurer Appeals Judgment, Adverse Orders In Dispute With Insurer Over Billings

    UTICA, N.Y. — A reinsurer on Dec. 27 told a New York federal court that it is appealing a $6.25 million judgment in favor of an insurer and prior adverse orders in a dispute between the parties over coverage under two separate reinsurance certificates for settlements of asbestos claims (Utica Mutual Insurance Co. v. Century Indemnity Co., No. 13-995, N.D. N.Y.).

  • January 03, 2020

    Insurer Seeks Dismissal Of Woman’s Case Over Rights In Reinsurance Agreements

    JASPER, Ala. — Citing no subject matter jurisdiction, an insurer in a Dec. 27 motion asks an Alabama federal court to dismiss a former female prison inmate’s claim seeking a declaratory judgment as a judgment creditor of the insurer’s rights under reinsurance agreements in her lawsuit alleging sexual misconduct in a jail (Jessica Rainer v. J.C. Poe Jr., et al., No. 19-1392, N.D. Ala.).

  • January 02, 2020

    Judge Awards $218,246 To Reinsurer For Conduct Of Insurance Agency’s Principal

    SAN DIEGO — A California federal judge on Dec. 27 awarded $218,246 to a reinsurer for the contemptuous conduct of an insolvent insurance agency’s principal regarding a preliminary injunction and a temporary restraining order in a dispute over the alleged fraudulent transfer of the agency’s assets to avoid payment of a $3.2 million judgment (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al., No. 16-3038, S.D. Calif., 2019 U.S. Dist. LEXIS 221812).

  • January 02, 2020

    Liquidators Appeal Dismissal Of Claims Over Offset Under ACA Reinsurance Program

    WASHINGTON, D.C. — The liquidators for an insolvent insurer gave notice on Dec. 23 that they are appealing a U.S. Court of Federal Claims judge’s dismissal of their state law claims against the U.S. government over violation of South Carolina insurance law following the government’s offset of $36 million under the reinsurance program of the Patient Protection and Affordable Care Act (ACA) (Raymond G. Farmer, et al. v. The United States, No. 18-1484, Fed. Clms.).

  • January 02, 2020

    10th Circuit Reverses Denial Of Reinsurer’s Intervention In Breach Of Contract Case

    DENVER — A majority of the 10th Circuit U.S. Court of Appeals ruled Dec. 23 that a reinsurer established the requirements for intervention as of right in an insured’s lawsuit against its insurer over the alleged failure to comply with a universal life policy’s terms (Robert Barnes v. Security Life of Denver Insurance Co., No. 18-1487, 10th Cir., 2019 U.S. App. LEXIS 38242).

  • 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).

  • 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).

  • 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.).

  • 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.).

  • 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).

  • 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).

  • 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.).

  • 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.).

  • 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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