Mealey's Reinsurance

  • May 31, 2022

    New York Prejudice Law Argued In Opposition To Summary Judgment Bids

    NEW YORK — Parties in a declaratory judgment suit over defense and indemnity costs in a personal injury case on May 24 and 25 each filed opposition to the other’s motion for summary judgment in New York federal court, arguing issues including whether, under New York law, the defendant is required to show prejudice to assert a late notice defense.

  • May 31, 2022

    Parties Dispute Discovery Planning Conference Request In Declaratory Judgment Suit

    BOSTON — In filings dated May 9 and May 20, the parties in a declaratory judgment suit regarding a stock purchase agreement (SPA) and reinsurance agreement dispute the plaintiff’s request that a Massachusetts federal court order a discovery planning conference, with the defendant arguing that holding such a conference “is not practicable” because of its pending motion to dismiss and issues raised in that motion.

  • May 27, 2022

    Bankruptcy Court Permissibly Allowed Boy Scouts To Retain Firm, 3rd Circuit Rules

    PHILADELPHIA — Declining the appellant’s invitation to adopt a new rule “that courts must always consider the applicable Rules of Professional Conduct before reaching a conclusion on” Section 327(a) of the U.S. Bankruptcy Code, a Third Circuit U.S. Court of Appeals panel on May 24 upheld the decisions of two lower courts in a dispute over the debtor’s retention of counsel in a bankruptcy case.

  • May 26, 2022

    Workers’ Comp Insurer:  New Jersey Action Behind RPA Row Stay Is Still Unresolved

    LINCOLN, Neb. — A May 24 letter from a workers’ compensation insurer informed a Nebraska federal magistrate judge of the status of a related New Jersey suit that prompted a stay of the instant case, which concerns a promissory note executed pursuant to a reinsurance participation agreement (RPA).

  • May 25, 2022

    Class Settlement Including Nearly $93.1M Fund Gets Final OK In COI Increase Suit

    NEW YORK — A New York federal judge on May 17 granted final approval to a class action settlement including a settlement fund of nearly $93.1 million in a suit over a life insurance cost of insurance (COI) increase in which class counsel said a subpoena served on a reinsurer resulted in “what Plaintiffs contend are key admissions”; on May 20, the judge amended an order awarding fees, expenses and incentive awards.

  • May 24, 2022

    Defendants Win Transfer Of Suit Over EquityComp To Nebraska Federal Court

    PHILADELPHIA — Ruling that a forum selection clause is valid and public and private interests “weigh in favor of trying the case in Nebraska,” a Pennsylvania federal judge on May 20 granted a motion by defendants to transfer the suit over a program called EquityComp and a reinsurance participation agreement (RPA) to a Nebraska federal court.

  • May 24, 2022

    Privilege Dispute In Reinsurance Billings Suit Is Referred To Magistrate Judge

    LOS ANGELES — In an order issued without explanation and over the opposition of a defendant, a California federal judge on May 20 granted the plaintiffs’ motion to refer a dispute over privilege in a reinsurance billings suit to a magistrate judge.

  • 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

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