Mealey's Reinsurance

  • May 18, 2022

    Government And Both Parties Move To Amend $1M Judgment In Crop Insurance Case

    MINNEAPOLIS — A Minnesota federal judge predicted in a March 30 ruling in a suit over crop insurance that both parties “will take serious issue with the appropriate measure of damages,” and on April 27 they each moved to amend the judgment, as did the government.

  • May 18, 2022

    After 2 Reinsurers Deny Coverage, District’s Insurer Seeks Declaratory Judgment

    COLUMBIA, S.C. — After the South Carolina School Boards Insurance Trust (SCSBIT) sued two reinsurers in South Carolina state court alleging that each argued that the other’s policy covered the claims at issue, one reinsurer on May 10 removed the case to South Carolina federal court and filed its answer, and the other filed an answer on May 11.

  • May 17, 2022

    Insured Appeals Ruling That Ohio’s All-Sums Allocation Doctrine Wasn’t Violated

    CINCINNATI — In an April 20 filing in the Sixth Circuit U.S. Court of Appeals, an insured says issues it will raise on interlocutory appeal include whether an Ohio federal court erred in holding that insurers “did not violate Ohio's all-sums insurance allocation doctrine when they refused to honor” the insured’s “all-sums tender in a manner that imposed a pro-rata allocation of risk and left” the insured “financially responsible for a large portion of a multi-million dollar settlement.”

  • May 16, 2022

    10th Circuit Upholds Denial Of Purported Captive Insurer’s Tax Status Challenge

    DENVER — Affirming that a company organized as a captive insurer was not an insurer and therefore not exempt from income tax, a 10th Circuit U.S. Court of Appeals panel on May 13 held not that forms of transactions in the case — such as a risk-pooling reinsurance arrangement — are improper, but that the U.S. Tax Court “could properly conclude that they were not insurance transactions in substance.”

  • May 16, 2022

    Bankruptcy Judge OKs Asset Sale Procedures After Liquidators Revise Request

    NEW YORK — Following revisions to the request from joint provisional liquidators (JPLs), a New York federal bankruptcy judge on May 13 approved procedures to sell assets of Bermuda insurer and reinsurer PB Life and Annuity Co. Ltd. (PBLA) and other debtors.

  • May 12, 2022

    Judge OKs Dismissal Of Claims Settled For $1.85M In Suit Involving Reinsured Surety

    CHARLESTON, W.Va. — Rejecting indemnitors’ arguments that a surety acted unreasonably and did not comport with good faith by entering a $1.85 million settlement to resolve certain claims in the case, a West Virginia federal judge on April 21 granted a motion to dismiss those claims with prejudice in a suit over reinsured performance and payment bonds.

  • May 12, 2022

    Reinsurers Report Insurer’s Asbestos Liability Agreement, Seek Declaratory Judgment

    Asserting that National Indemnity Co. (NICO) recently entered into an agreement with Montana to settle its potential liability to the state for claims related to alleged asbestos exposure to milling and mining operations in the Libby, Mont., area between July 1973 and July 1975, Global Reinsurance Corporation of America and R&Q Reinsurance Co. on May 10 filed similar suits in Pennsylvania and New York federal courts seeking declarations regarding their rights and obligations under facultative reinsurance certificates that their predecessors-in-interest issued to NICO.

  • May 12, 2022

    Texas Defamation, Breach Dispute Dismissed On Plaintiff’s Notice Of Non-Suit

    FORT WORTH, Texas — After the defendants in a suit brought by an intermediary that helps clients access the U.S. program reinsurance market filed a notice of abatement under the state’s Defamation Mitigation Act, the intermediary filed a notice of non-suit on May 9 and a judge dismissed the case without prejudice on May 10.

  • May 12, 2022

    Executives’ Renewed Post-Trial Relief Bids In Hedge Fund Securities Fraud Case Fail

    BROOKLYN, N.Y. — A New York federal judge on May 9 denied renewed bids for post-trial relief from two former hedge fund executives who were convicted of charges including securities fraud in an alleged scheme that involved a reinsurer and related entities.

  • May 11, 2022

    New DUFTA Claims Dismissed In Fraudulent Transfer Suit Against LTC Insurer

    WILMINGTON, Del. — Ruling that “a ‘right to payment’ is a necessary predicate to a viable” claim under the Delaware Uniform Fraudulent Transfer Act (DUFTA) and that the plaintiffs did not plead that right in three new counts, a Delaware vice chancellor on May 10 granted partial dismissal in a putative class suit alleging fraudulent transfers from an insurance subsidiary that more than 1 million policyholders depend on for long-term care (LTC) insurance disability benefits.

  • May 10, 2022

    Breach, UCL Claims Survive Dismissal In Mortgage Loan, Force-Placed Insurance Row

    SACRAMENTO, Calif. — In a May 5 order mostly granting dismissal of claims in a putative class suit over home mortgage loan servicing and a reinsurance program, a California federal judge allowed 20 days to file an amended complaint but issued a reminder that “the purpose of a complaint is not to see how many claims can be constructed out of a single set of facts, but to plead only such claims as may improve plaintiff’s prospects of prevailing at trial.”

  • May 09, 2022

    Objecting To R&R, Cooperative Seeks Stay Pending Arbitration With 1 Defendant

    SEATTLE — Objecting to a report and recommendation (R&R) that one defendant’s motion to compel arbitration and dismiss the claims against it be granted, a Washington interlocal cooperative on May 4 told a Washington state federal court that the entire case should be stayed pending the outcome of its scheduled December arbitration with that defendant, which is a foreign reinsurer.

  • May 03, 2022

    COMMENTARY: What Happens When The Arbitral Forum Selected By The Parties Is No Longer Available?

    By Robert M. Hall

  • May 04, 2022

    Citing Texas Law, Defendants Claim Abatement Of Defamation, Breach Suit

    FORT WORTH, Texas — On April 18, the defendants in a suit filed by an intermediary that helps clients access the U.S. program reinsurance market told a Texas state court that the action “is automatically abated in its entirety” under the state’s Defamation Mitigation Act.

  • May 04, 2022

    Oxford Counterclaims In Microcaptive Insurance Breach Of Contract Info Request Row

    WILMINGTON, Del. — In the April 28 public version of its answer to allegations in Delaware state court that it baselessly withheld documents and information that two entities involved in microcaptive insurance arrangements need to give the Internal Revenue Service, defendant Oxford Insurance Co. counterclaimed against those entities for breach of contract.

  • May 03, 2022

    Vice Chancellor: Person Seeking Defunct Company’s Receivership Lacked Information

    WILMINGTON, Del.  — A Delaware vice chancellor on April 20 determined that an alleged former manager of a defunct Delaware holding company that acted as an insurance and reinsurance broker and adviser needs to provide more information for consideration of his petition for appointment as a receiver for a company solely managed by the holding company, finding that the petition fails to “provide any meaningful information about” the managed company.

  • May 03, 2022

    Nebraska Federal Judge Dismisses All But Breach Claim In Suit Over EquityComp

    OMAHA, Neb. — Related moving and storage corporations stated a breach of contract claim regarding a program called EquityComp against one of three defendants based on their allegations that it “significantly raised the ultimate projected claims cost without explanation and in contravention of” a reinsurance participation agreement (RPA), a Nebraska federal judge ruled May 2 in denying dismissal of the claim but otherwise granting the defendants’ motion to dismiss.

  • May 03, 2022

    Judge Won’t Reconsider Dismissal Of Illinois Bad Faith Claim In Reinsurance Case

    CHICAGO — Saying “that Illinois law consistently distinguishes the concepts of direct insurance and reinsurance,” an Illinois federal judge on April 29 refused to reconsider dismissal of a claim of bad faith refusal to pay under the Illinois Insurance Code but granted leave to amend a claim of tortious interference with reinsurance contracts.

  • May 03, 2022

    Summary Judgment Bid Contests Reinsurer’s Interpretation In Breach Suit

    GALVESTON, Texas — The defendant’s interpretation of an individual letter of agreement and HMO excess reinsurance contract would deny coverage for a heart transplant because the patient was admitted for pretransplant care two days before coverage began, the plaintiff tells a Texas federal court in an April 29 motion for summary judgment on the only remaining claim in the case.

  • May 02, 2022

    Summary Judgment Motions Filed In Defense, Indemnity Costs Row Involving Reinsurer

    NEW YORK — Parties in a declaratory judgment suit over defense and indemnity costs in a personal injury case on April 22 filed dueling motions for summary judgment in New York federal court, arguing issues including late notice and whether the plaintiff has a right to seek reimbursement of sums paid by what it argues is its general managing agent.

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