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Mealey's Reinsurance

  • January 22, 2019

    Judge Enforces Summonses Against Investment Group In Reinsurer’s Fraud Case

    WHITE PLAINS, N.Y. — An arbitration panel’s summonses against an investment group and its founder in a fraud case against a reinsurer and a hedge fund were enforced by a New York federal judge on Jan. 18, granting an insurer’s petition to enforce (Washington National Insurance Co. v. OBEX Group LLC, et al., No. 18-9693, S.D. N.Y., 2019 U.S. Dist. LEXIS 9300).

  • January 22, 2019

    Insolvent Insurer: No Appeal Filed In Arbitration Dispute With British Reinsurers

    NEW YORK — A receiver for an insolvent insurer in a Jan. 18 letter tells a New York federal judge to ignore a notice of appeal in a dispute over reinsurance payments for construction site injuries because the appeal was not filed by the insurer (Certain Underwriting Members of Lloyds of London, et al. v. Insurance Company of the Americas, Nos. 16-323 & 16-374, S.D. N.Y.).

  • January 22, 2019

    Reconsideration Declined On Continuance In Reinsurer’s Dispute Over $3.2M Judgment

    SAN DIEGO — A California federal judge on Jan. 16 refused to reconsider a ruling allowing a continuance of pretrial conference and related dates in a reinsurer’s dispute over a $3.2 million judgment (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al., No. 16-3038, S.D. Calif.).

  • January 22, 2019

    Third Amended Complaint Filed Over Insurance Agency’s Alleged Disparagement

    TULSA, Okla. — A distributor of self-insurance products alleges in a third amended complaint filed Jan. 16 in an Oklahoma federal court that an insurance agency and agent disparaged it with a false and misleading representation of its reinsurance problems during the promotion of a competitor’s products to Oklahoma school districts (The Sandner Group – Alternative Risk Solutions Inc. v. BancFirst Insurance Services Inc., et al., No. 18-0265, N.D. Okla.).

  • January 18, 2019

    Funds’ Receiver Seeks Redress For ‘Massive Fraudulent Scheme’

    NEW YORK — A receiver for funds seeks redress in a Dec. 19 complaint filed in a New York federal court for a “massive fraudulent scheme masterminded by the now indicted and/or convicted insiders” of Platinum Partners Credit Opportunities Master Fund LP (PPCO funds) (Melanie L. Cyganowski, as equity receiver for Platinum Partners Credit Opportunities Master Fund LP, et al. v. Beechwood Re Ltd., et al., No. 18-12018, S.D. N.Y.).

  • January 18, 2019

    Reinsurers Denied Reconsideration In Financial Company’s $26M Arbitration Award Case

    WASHINGTON, D.C. — Denying reconsideration of an earlier ruling, a District of Columbia federal judge on Jan. 17 allowed a financial service company to proceed on breach of an implied-in-fact contract, promissory estoppel and unjust enrichment claims against reinsurers in a dispute over a $26 million arbitration award (Vantage Commodities Financial Services I, LLC v. Assured Risk Transfer PCC, LCC, et al., No. 17-01451, D. D.C., 2019 U.S. Dist. LEXIS 8059).

  • January 17, 2019

    Magistrate Judge Excludes In Part Expert Testimony In Reinsurance Coverage Case

    SPRINGFIELD, Ill. — An Illinois federal magistrate judge on Jan. 16 granted in part several motions to exclude expert testimony regarding a corporate status issue in a reinsurance coverage dispute over payment for mine subsidence damages (Illinois Mine Subsidence Insurance Fund v. Union Pacific Railroad Co., No. 17-3199, C.D. Ill., 2019 U.S. Dist. LEXIS 7355).

  • January 17, 2019

    Homeowner Files Third Amended Complaint Over Illegal Kickback Scheme

    HONOLULU — After a second amended complaint alleging unfair or deceptive acts or practices in the placement of insurance through “illegal kickback or captive reinsurance arrangements” was dismissed in part, a homeowner, on behalf of herself and others, on Jan. 15 filed a third amended complaint in a Hawaii federal court (Julia Wieck v. CIT Bank, N.A., et al., No. 16-00596, D. Hawaii).

  • January 16, 2019

    Insurers, Investment Companies Seek To Dismiss RICO, Unjust Enrichment Claims

    KANSAS CITY, Kan. — Insurance and investment companies filed separate motions on Jan. 14 to dismiss Racketeer Influenced and Corrupt Organizations (RICO) Act and unjust enrichment claims in a Kansas federal court action alleging that they depleted life insurers’ surplus assets by reinsuring risks with one another rather than using “arm’s-length reinsurance treaties” (Albert Ogles v. Security Benefit Life Insurance Co., et al., No. 18-02265, D. Kan.).

  • January 16, 2019

    Justice Grants Reinsurer, Entities Leave To Counterclaim For Damages From Breach

    JAMAICA, N.Y. — In a case addressing whether reinsurance participation agreements (RPAs) are illegal and unlawful, a New York justice on Nov. 14 allowed defendants to assert a counterclaim seeking damages for breach of the RPAs and policies and a declaration that the RPAs are valid, enforceable contracts (The Energy Conservation Group LLC, et al. v. Applied Underwriters Inc., et al., No. 710762 2015, N.Y. Sup., Queens Co., 2018 N.Y. Misc. LEXIS 6746).

  • January 16, 2019

    Promissory Note Holder: No Typical Claims For Class Over Insurance Programs

    LINCOLN, Neb. — A note holder to a promissory note executed pursuant to a reinsurance participation agreement (RPA) in a Jan. 11 filing opposes a request in Nebraska federal court for class certification of a nationwide class of employers who purchased unlawful workers’ compensation insurance programs and signed related promissory notes because the counterclaims are not typical of a class (Applied Underwriters Inc. v. Top’s Personnel Inc., No. 15-90, D. Neb.).

  • January 15, 2019

    Investor Seeks To Dismiss Hedge Fund’s Liquidators’ Fraud, Conspiracy Lawsuit

    NEW YORK — An investor on Jan. 11 joined other motions seeking to dismiss a fraud and conspiracy lawsuit filed in a New York federal court by the liquidators for two hedge funds concerning allegations that the funds with a net asset value of nearly $1 billion turned out not only to be insolvent but also to have liabilities between $400 million and $800 million (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • January 15, 2019

    Underwriters Oppose Arbitration In Dispute Over Reinsurance Contract

    BALTIMORE — Underwriters subscribing to a facultative reinsurance certificate in a Jan. 11 filing oppose a request to compel arbitration or dismiss their Maryland federal court lawsuit seeking a declaration that a reinsurance contract is void ab initio based on insurers’ failure to disclose certain information in their application (Certain Interested Underwriters at Lloyd’s London, subscribing to the facultative reinsurance certificate 2017100003409 v. American Casualty Company of Reading, Pa., et al., No. 18-02972, D. Md.).

  • January 14, 2019

    Reinsurance Participation Agreement Is An Insurance Contract, 4th Circuit Rules

    RICHMOND, Va. — In a dispute over billings for a workers’ compensation program, the Fourth Circuit U.S. Court of Appeals affirmed Jan. 14 that a reinsurance participation agreement (RPA) is an insurance contract for purposes of Virginia Code Section 38.2-312 (Minnieland Private Day School v. Applied Underwriters Captive Risk Assurance Company Inc., 17-2385, 4th Cir., 2019 U.S. App. LEXIS 1188).

  • January 10, 2019

    Judge Stays Insured’s Case Pending Reinsurer’s Appeal Of Denied Motion To Intervene

    DENVER — A Colorado federal judge on Jan. 9 stayed an insured’s lawsuit over the alleged failure to comply with a universal life policy’s terms pending a reinsurer’s appeal on the denial of its motion to intervene (Robert Barnes v. Security Life of Denver Insurance Co., No. 18-718, D. Colo., 2019 U.S. Dist. LEXIS 4037).

  • January 9, 2019

    Reinsurers Sued For Breach Of Contract Regarding Securities Lending Coverage

    NEW YORK — Regarding coverage for alleged breaches of securities lending agreements, a bank and an insurer accuse underwriters on Dec. 21 in a New York federal court of breaching a reinsurance contract (Wells Fargo Bank N.A., et al. v. Lloyd’s Syndicate AGM 2488, et al., No. 18-12122, S.D. N.Y.).

  • January 9, 2019

    Insurers File Amended Complaint Over $22M In Reinsurance Billings

    CONCORD, N.H. — Insurers filed an amended complaint on Jan. 7 adding additional reinsurers as defendants in their breach of contract lawsuit in a New Hampshire federal court in which they seek to recover $22 million in outstanding reinsurance billings (United States Fire Insurance Co., et al. v. Equitas Insurance Ltd., et al., No. 18-01205, D. N.H.).

  • January 8, 2019

    Reinsurer Responds To Health Insurer’s Breach Of Contract Lawsuit

    PORTLAND, Ore. — In a health insurer’s Oregon federal court lawsuit seeking to recover $1.8 million for losses, a reinsurer in a Jan. 7 answer denies allegations that it breached a reinsurance contract (Moda Health Plan Inc. v. Swiss Re Life & Health America Inc., No. 18-01917, D. Ore.).

  • January 8, 2019

    Run-Off Insurer’s 2nd Amended Complaint Sought To Be Partially Dismissed

    NEW YORK — In a dispute over the alleged mismanagement and misuse of $320 million, a run-off insurer’s second amended complaint should be dismissed, a reinsurer and its entities argue in a Jan. 7 motion in a New York federal court because the run-off insurer fails to sufficiently allege claims arising out of a breach of fiduciary duty and fraud (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-6658, S.D. N.Y.).

  • January 8, 2019

    Insured Opposes Stay Pending Reinsurer’s Appeal Of Denied Request To Intervene

    DENVER — In a lawsuit over the alleged failure to comply with a universal life policy’s terms, an insured argues in a Jan. 4 opposition that he would be prejudiced if a life insurer’s request to stay a Colorado federal court case pending a reinsurer’s appeal on the denial of its motion to intervene was granted (Robert Barnes v. Security Life of Denver Insurance Co., No. 18-718, D. Colo.).