Mealey's Reinsurance
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November 12, 2019
Bermuda Reinsurer Seeks Dismissal Of ERISA Case For Lack Of Jurisdiction
WASHINGTON, D.C. — A Bermuda reinsurer in a Nov. 7 motion asks a District of Columbia federal court to dismiss for lack of personal jurisdiction a lawsuit filed by trustees of the United Mine Workers of America (UMWA) pension plan over alleged violations of the Employee Retirement Income Security Act from failing to make $934 million in withdrawal liability payments (Michael H. Holland, et al. v. Cardem Insurance Company Ltd., No. 19-02362, D. D.C.).
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November 11, 2019
Magistrate Judge Declines To Compel Reinsurers To Produce Info Over Settlement Allocation
BOSTON — A Massachusetts federal magistrate judge on Nov 8 denied an insurer’s motion to compel production of documents from reinsurers over allocation and billing of a 2009 settlement with an insured because “the relevance of the materials sought is too speculative” (Certain London Market Company Reinsurers v. Lamorak Insurance Co., No. 18-10534, D. Mass.).
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November 11, 2019
Judge Denies Reconsideration Over Appeal Ruling In Case Involving Insolvent Insurer
SAN JUAN, Puerto Rico — A federal judge in Puerto Rico in a Nov. 6 docket entry denied, without explanation, a request by the Puerto Rico insurance commissioner and deputy commissioners to reconsider an order certifying their appeal as “frivolous” in a lawsuit alleging civil conspiracy to deprive constitutional rights to an insolvent insurer’s owners (Victor J. Salgado and Associates Inc., et al. v. Javier Rivera-Rios, et al., No. 19-1663, D. Puerto Rico).
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November 08, 2019
Error In Dismissal Of RICO Claim In Alleged Reinsurance Scheme, Investor Asserts
DENVER — An investor argues in a Nov. 6 opening brief with the 10th Circuit U.S. Court of Appeals that he has a valid claim under Racketeer Influenced and Corrupt Organizations Act with regard to his dispute over an alleged reinsurance scheme and that the lower court erred in finding that the claim is reverse-preempted under the McCarran-Ferguson Act (Albert Ogles v. Guggenheim Investments, et al., No. 19-3154, 10th Cir.).
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November 07, 2019
Irish Reinsurer Seeks Closure Of Chapter 15 Case Having Completed Restructuring
NEW YORK — Having completed restructuring steps, the foreign representative for an Irish reinsurer in a Nov. 5 notice seeks an order from a New York federal bankruptcy court closing the bankruptcy proceeding that recognized a foreign main liquidation proceeding concerning an alleged $1 billion deficit (In re Ballantyne Re Plc, Chapter 15, No. 19-11490, S.D. N.Y. Bkcy.).
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November 07, 2019
Runoff Insurer Dismisses Defendant From Third-Party Aiding, Abetting Claims
NEW YORK — A runoff insurer on Nov. 4 voluntarily dismissed a third-party defendant from allegations of aiding and abetting a Ponzi-like scheme in which fraudulent misrepresentations were made to gain investment control and discretion over $320 million of the runoff insurer’s reserves (In re Platinum-Beechwood litigation, No. 18-6658; Senior Health Insurance Company of Pennsylvania v. PB Investment Holdings Ltd., et al., No. 18-12018, S.D. N.Y.).
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November 05, 2019
Insurer Appeals Ruling On Arbitration Panel’s Jurisdiction Over New Reinsurance Billings
NEW YORK — An insurer on Oct. 31 filed a notice of appeal in the Second Circuit U.S. Court of Appeals of a New York federal judge’s decision to stay the insurer’s new arbitration of reinsurance billings for asbestos losses because a prior arbitration panel retained jurisdiction to decide the matter (Chicago Insurance Co. v. General Reinsurance Corp., et al., No. 18-10450, S.D. N.Y.).
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November 05, 2019
No Evidence Exists For New Trial On $6.25M Judgment Against Reinsurer, Insurer Says
UTICA, N.Y. — An insurer argues in a Nov. 1 opposition brief to a New York federal court that a reinsurer failed to show a “complete absence of evidence” for a $6.25 million jury verdict in a dispute concerning two separate reinsurance certificates and coverage for settlements of asbestos claims (Utica Mutual Insurance Co. v. Century Indemnity Co., No. 13-995, N.D. N.Y.).
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November 04, 2019
Part Of Liquidator’s Claims Over Offset Under ACA Reinsurance Program Dismissed
WASHINGTON, D.C. — A U.S. Court of Federal Claims judge on Oct. 31 dismissed for lack of jurisdiction insolvent insurer liquidators’ 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., 2019 U.S. Claims LEXIS 1584).
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November 04, 2019
Runoff Insurer: Judge Should Not Rule On Post-Acquittal Relief
NEW YORK — A runoff insurer argues in an Oct. 30 opposition brief that a New York federal judge should deny reconsideration of a decision to defer ruling on an investment company’s former executive’s post-acquittal relief for advancement of $708,784.77 in legal fees and costs until the U.S. government’s appeal of a judgment acquitting the former executive in a related criminal action has been decided (In re: Platinum-Beechwood Litigation, No. 18-6658, David Levy v. Senior Health Insurance Company of Pennsylvania, No. 19-3211, S.D. N.Y.).
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October 31, 2019
Bankruptcy Judge: Stay In Reinsurer’s Proceeding Does Not Bar Insurer’s Reimbursement
NEW YORK — A New York bankruptcy judge on Oct. 8 confirmed that an automatic stay issued in a reinsurer’s bankruptcy proceeding does not preclude an insurer from reimbursing defense costs (In re Beechwood Re, No. 19-11560, Chapter 15, S.D. N.Y. Bkcy.).
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October 31, 2019
Insurer: No Jurisdiction Exists Over Creditor Claim Under Reinsurance Agreements
JASPER, Ala. — An Alabama federal court should dismiss a woman’s claims against an insurer in a lawsuit against the city of Jasper and its employees over sexual misconduct in a jail allegations because no subject matter jurisdiction exists, the insurer argues in an Oct. 10 reply brief (Whitley Goodson v. J.C. Poe Jr., et al., No. 19-1399, N.D. Ala.).
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October 30, 2019
Judge Denies Stay Pending Appeal In Civil Conspiracy Case Involving Insolvent Insurer
SAN JUAN, Puerto Rico — A federal judge in Puerto Rico on Oct. 30 denied a request to stay proceedings pending an appeal by the Puerto Rico insurance commissioner and deputy commissioners because there are sufficient plausible facts asserted to support a claim of a civil conspiracy to deprive constitutional rights to an insolvent insurer’s owners (Victor J. Salgado and Associates Inc., et al. v. Javier Rivera-Rios, et al., No. 19-1663, D. Puerto Rico).
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October 30, 2019
Trustee Accuses Reinsurer, Life Insurer Of Improper Increase Of Costs On Policies
NEW YORK — A trustee of a family irrevocable trust sued a life insurer and reinsurer on Oct. 22 in New York federal court over the cost of insurance rate increases imposed on life insurance policies to “reap substantially more profit” for the companies (C. Anthony Gonzalez v. The Lincoln Life & Annuity Company of New York, et al., No. 19-09750, S.D. N.Y.).
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October 29, 2019
Car Dealership, Reinsurer Seek Interest On Balance Of $462,971 Arbitration Award
ATLANTA — A car dealership and reinsurer argue in an Oct. 7 reply brief that the Georgia Court of Appeals should find a vehicle service contracts administrator liable for interest at the rate of 8 percent per annum on the balance of an arbitration award while the contracts administrator argues on the same day that the court should vacate the $462,781 arbitration award as there is no evidence other than the arbitrator “simply dictating new and different terms than the parties agreed upon” (Adventure Motorsports Reinsurance Ltd., et al. v. Interstate National Dealer Services Inc., No. A20A0036, Interstate National Dealer Services Inc. v. Adventure Motorsports Reinsurance Ltd., et al., No. A20A0037, Ga. App.).
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October 29, 2019
Reinsurer Seeks Declaratory Judgment On Insurer’s Duties For Personal Injury Case
OKLAHOMA CITY — A reinsurer, as the real-party-in-interest, filed a declaratory judgment action on Oct. 21 in an Oklahoma federal court, seeking a determination of an insurer’s duty to defend and indemnify an underlying personal injury lawsuit arising out of a vehicular collision (Star Insurance Co. v. K&J Telecommunications, LLC, et al., No. 19-960, W.D. Okla.).
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October 28, 2019
Trustee: Life Insurer’s Cost Increase Due To Losses From Reinsurance Transactions
CEDAR RAPIDS, Iowa — A trustee for an irrevocable trust alleges in an Oct. 23 complaint filed in Iowa federal court that a life insurer substantially increased its costs on universal life insurance policies and imposed monthly deduction rate increases to recover prior losses from reinsurance transactions (Angela Terry v. Transamerica Life Insurance Co., No. 19-118, N.D. Iowa).
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October 28, 2019
Insurers Dismiss Third-Party RICO, Fraud Claims In Case Over Hedge Fund Scheme
NEW YORK — Insurers tell a New York federal judge in an Oct. 23 stipulation that they are dismissing their third-party claims, which include fraudulent inducement and violations of the Racketeer Influenced and Corrupt Organizations Act, against certain third-party defendants in a lawsuit originally filed by a receiver seeking redress for damages arising out of a “massive fraudulent scheme” involving hedge funds (In re Platinum-Beechwood Litigation, No. 18-6658, Melanie L. Cyganowski, et al. v. Beechwood Re Ltd., et al., No. 18-12018; Washington National Insurance Co., et al. v. Mark Nordlicht, et al., No. 18-12018, S.D. N.Y.).
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October 28, 2019
Asbestos Billing Suit Against Reinsurers Dismissed In Deference To New Jersey Suit
CONCORD, N.H. — A New Hampshire federal judge on Oct. 24 dismissed a suit filed by excess insurers against a number of reinsurers that allegedly refused to pay $22 million in reinsurance billings for asbestos and silica claims paid by the insurers after determining that the prior-pending doctrine warrants dismissal as a similar suit was filed prior to the instant suit in New Jersey state court (United States Fire Insurance Co., et al. v. Equitas Insurance Ltd., et al., No. 18-01205, D. N.H., 2019 U.S. Dist. LEXIS 183909).
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October 23, 2019
Judge: Original Arbitration Panel Retains Jurisdiction Over New Reinsurance Billings
NEW YORK — A 2017 arbitration panel retains jurisdiction to decide whether new reinsurance billings over an insurer’s settlement of asbestos liability comports with its final award, a New York federal judge ruled Oct. 22, staying the insurer’s new arbitration (Chicago Insurance Co. v. General Reinsurance Corp., et al., No. 18-10450, S.D. N.Y., 2019 U.S. Dist. LEXIS 182764).