Mealey's Reinsurance

  • February 17, 2021

    Environmental Claims Payment Dispute Between Insurer, Reinsurer Dismissed

    LOS ANGELES — A California federal judge on Jan. 15 granted an insurer and reinsurer’s motion to dismiss a dispute over the reinsurer’s alleged failure to indemnify environmental claims payments after the parties reached an agreement to dismiss the suit with prejudice.

  • February 16, 2021

    Oral Arguments Scheduled For Asbestos, Reinsurance Dispute Pending In 6th Circuit

    CINCINNATI — The Sixth Circuit U.S. Court of Appeals is scheduled to hear oral arguments on March 3 in an appeal of an asbestos coverage dispute by an insurer that claims a district court erred in denying its motion to dismiss the insured’s breach of contract and bad faith suit.

  • February 11, 2021

    All Claims Arising Out Of Reinsurance Agreement Must Be Arbitrated, Judge Says

    GRAND RAPIDS, Mich. — A Michigan federal judge on Feb. 10 granted a reinsured’s motion to dismiss a reinsurer’s suit seeking a declaration that there is no reinsurance coverage for costs related to claims made against the reinsured’s employee benefit plans after determining that the reinsurance agreement’s arbitration clause clearly provides that all claims must be arbitrated.

  • February 08, 2021

    Reinsurer Contends Railroad Company’s Amended Complaint Must Be Dismissed

    SPRINGFIELD, Ill. — An amended complaint filed by a railroad company seeking declarations and injunctive relief over reinsurer Illinois Mine Subsidence Insurance Fund’s (IMSIF) pursuit of reimbursement as subrogee for mine subsidence claims the reinsurer paid on behalf of subrogor property owners must be dismissed for failure to state a claim upon which relief can be granted, the IMSIF maintains in a Feb. 5 motion to dismiss.

  • February 08, 2021

    401(k) Participant Failed To Show Alternative Actions Could Have Protected Plan

    NEW YORK — The Second Circuit U.S. Court of Appeals on Feb. 4 determined that a district court did not err in finding that a plan participant’s breach of the duty of prudence claim cannot proceed because the participant failed to allege any alternative actions that could have been taken by General Electric Co. (GE) to protect participants in GE’s employee stock option plan from losses caused by a decrease in GE’s stock prices after the company announced that the liabilities of its reinsurance subsidiaries were under reserved.

  • February 04, 2021

    Former Willis Re Employee Seeks Expedited Discovery In Employment Contract Dispute

    SAN JUAN, Puerto Rico — A former employee of Willis Re Inc. maintains in a Jan. 4 reply brief filed in Puerto Rico federal court that expedited discovery is warranted in a dispute over an employment agreement’s nonsolicitation clause because expedited discovery will aid the court in deciding whether a preliminary injunction should be issued per the employee’s request.

  • January 27, 2021

    COMMENTARY: The Role Of Utmost Good Faith In Reinsurance Disputes

    By Robert M. Hall

  • February 03, 2021

    Request For Pre-Motion Conference In Reinsurance Dispute Denied

    NEW YORK — A New York federal judge on Jan. 27 denied a defendant’s request for a pre-motion conference regarding the defendant’s anticipated motion to dismiss and granted an insurer and reinsurer’s motion for leave to amend their complaint in a suit seeking to enforce a promissory note worth more than $4.6 million tied to a reinsurance arrangement for an in-force book of disability income business.

  • February 03, 2021

    Reinsurance Policy Bars Claim Against School Board Arising Out Of Son’s Death

    RALEIGH, N.C. — A school board is immune from liability for a wrongful death suit filed against the board by the mother of a deceased student football player because the reinsurance policy at issue excludes coverage for claims filed by athletic participants, the North Carolina Court of Appeals said Feb. 2 in reversing a trial court’s ruling in favor of the parent.

  • February 03, 2021

    Excess Insurer Does Not Object To Posting Of Bond In Reinsurance Billings Case

    NEW YORK — An excess insurer does not object to a reinsurer’s request for approval of a supersedeas bond and stay of execution of a judgment entered in favor of the excess insurer while the reinsurer pursues an appeal of a $35 million judgment and an award of more than $2.9 million in prejudgment interest entered against the reinsurer in an asbestos coverage dispute, according to the excess insurer’s response filed Jan. 11 in New York federal court.

  • February 02, 2021

    Amicus Curiae Says District Court Erred In Instructing Jury In Insurance Bribery Suit

    RICHMOND, Va. — The National Association of Criminal Defense Lawyers on Jan. 28 filed an amicus curiae brief in the Fourth Circuit U.S. Court of Appeals, contending that a district court erred in instructing a jury on a disputed element of a charge in a $2 million bribery scheme case that resulted in convictions against a multinational insurance and reinsurance management company’s founder and a company consultant.

  • January 29, 2021

    Hedge Fund Receiver Drops Appeal Over Alleged Aiding, Abetting Of Fraud Scheme

    NEW YORK — The Second Circuit U.S. Court of Appeals said on Jan. 28 that a hedge fund receiver withdrew her appeal of a ruling that an investment holding company did not aid and abet fraud with three investment management agreements (IMAs) involving a reinsurer, its related entities and Senior Health Insurance Company of Pennsylvania (SHIP).

  • January 27, 2021

    Government Says It Can Set Off ACA Risk-Corridor Liabilities Against Insolvent Insurers

    WASHINGTON, D.C. — The U.S. Court of Federal Claims has jurisdiction to decide claims seeking setoffs of debts against risk-corridor liabilities owed to insolvent health insurers under the Patient Protection and Affordable Care Act (ACA) risk corridor, the U.S. government argues in a Jan. 22 opposition brief to a motion to dismiss, also noting its authority to recover interest owed on ACA debts.

  • January 26, 2021

    Panel Upholds Dismissal Of Bermuda Reinsurer’s Securities Fraud Lawsuit

    NEW YORK — The dismissal of a Bermuda reinsurer’s $5 million securities fraud case was affirmed by the Second Circuit U.S. Court of Appeals on Jan. 25 because the reinsurer’s claims are “predominantly foreign” under the Securities Exchange Act (SEA).

  • January 26, 2021

    Scottish Holding Inc.’s Trustee Seeks Approval Of $26M Settlements

    WILMINGTON, Del. — The trustee for Scottish Holdings Inc. (SHI) and one of its subsidiaries filed separate motions on Jan. 22 requesting a Delaware bankruptcy judge’s approval of two settlements worth more than $26 million reached with beneficiaries of a trust agreement and a reinsurance agreement.

  • January 25, 2021

    Shopping Cart Manufacturer: Blue Cross Breached Fiduciary Duty Under ERISA Plan

    STATESVILLE, N.C. — A third-party health insurance administrator unreasonably failed to process and pay a health plan participant’s expenses, resulting in a loss to the plan when the expenses could not be claimed under a reinsurance policy, a shopping car manufacturer and the group plan argue in a Jan. 22 motion seeking summary judgment from a North Carolina federal court on a breach of fiduciary duty claim under the Employee Retirement Income Security Act.

  • January 25, 2021

    U.S. High Court Dismisses Argued Arbitration Case As Improvidently Granted

    WASHINGTON, D.C. — The U.S. Supreme Court on Jan. 25 issued a one page per curiam opinion dismissing as improvidently granted a writ of certiorari in an already argued case concerning arbitrability disputes in a case between two distributors of dental equipment.

  • January 22, 2021

    Florida Federal Magistrate: No Reinsurance Coverage For Wrongful Acts Claims

    TAMPA, Fla. — Alleged wrongful acts claims occurred before reinsurance coverage or were related to prior acts occurring before the coverage date under a reinsurance agreement, a Florida federal magistrate judge said Jan. 21, recommending summary judgment to the reinsurer and against a Florida self-insured intergovernmental risk management association.

  • January 21, 2021

    California Regulators Accused Of Retaliation For Filing Conservatorship Order

    SACRAMENTO, Calif. — Applied Underwriters Inc. and a subsidiary filed an amended complaint on Dec. 14 in California federal court, alleging that the state’s insurance commissioner and deputies violated their constitutional rights and acted in bad faith by filing a conservatorship against a workers’ compensation insurer that is party to a reinsurance participation agreement (RPA).

  • January 20, 2021

    Mortgagors Move To Trial Against Insurers, Reinsurer On Anti-Kickback Violations

    FRESNO, Calif. — A class of mortgagors must prove at trial whether the safe harbor provision of Section 8(c) of the Real Estate Settlement Procedures Act (RESPA) shields private mortgage insurers and a captive reinsurer from liability for alleged anti-kickback violations through the use of captive reinsurance agreements, according to a Jan. 15 joint pretrial statement provided to a California federal court.

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