Mealey's Reinsurance
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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.
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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.
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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.
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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.
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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.
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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.
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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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April 29, 2022
Panel Resolves ‘Jurisdictional Conundrum’ In Insurers’ Dispute With DOBI
TRENTON, N.J. — A New Jersey appeals panel on April 27 held that the commissioner of the N.J. Department of Banking and Insurance (DOBI) may pursue an administrative action against two out-of-state insurance companies and their in-state affiliates for allegedly engaging in improper workers’ compensation insurance-related practices in New Jersey, remanding to the DOI’s administrative jurisdiction to reactivate a hearing pending before the Office of Administrative Law.
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April 27, 2022
Magistrate: Reject Reverse-Preemption, Dismiss Reinsurance Claims To Arbitration
SEATTLE — A federal magistrate judge in Washington state on April 20 issued a report in a declaratory judgment suit seeking reimbursement from reinsurers for defense and settlement of sexual abuse suits filed against a Washington school district, finding that reverse-preemption does not apply and recommending that a foreign reinsurer’s motion to compel arbitration and dismiss the claims against it be granted.
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April 25, 2022
Panel Affirms Rulings For Reinsurers, Brokers On Implied Contract, Negligence Claims
WASHINGTON, D.C. — Affirming a lower court’s rulings that reinsurers and insurance brokers are not liable for a financial services company’s losses, a District of Columbia Circuit U.S. Court of Appeals panel on April 22 denied the company’s bid to “sidestep its insurer,” rejecting its argument that it had an implied contract with the reinsurers and saying in part that negligence claims against the brokers are barred by the District of Columbia’s economic loss doctrine.
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April 21, 2022
Former Exec Of Brazilian Reinsurer Violated Anti-Fraud Provisions, SEC Alleges
NEW YORK — The U.S. Securities and Exchange Commission on April 18 filed an enforcement action in New York federal court against a former senior executive of a Brazilian reinsurance company over a false 2020 claim of a substantial investment by Berkshire Hathaway Inc., which he allegedly fabricated to boost the company’s stock price.
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April 21, 2022
Reinsurer Claims Late Notice In Declaratory Judgment Suit Regarding Class Action
DALLAS — Arguing that failure to provide timely notice of claims in an underlying class action for breach of contract “resulted in critical errors in the handling” of that suit, a reinsurer on April 18 filed for declaratory judgment against the ceding insurer in Texas federal court.
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April 20, 2022
Judge Orders More Briefing On Argentina’s Immunity From $33M Awards To Reinsurer
WASHINGTON, D.C. — A District of Columbia federal judge on April 18 found no grounds for finding subject matter jurisdiction over the Republic of Argentina to enforce two arbitral awards against it as successor-in-interest to a state-owned company that incurred debts to a reinsurer, but ordered the parties to file supplemental briefing on whether Argentina impliedly waived its sovereign immunity under the Foreign Sovereign Immunities Act (FSIA).
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April 20, 2022
After Discovery Order, Judge Stays Reinsurance Interference Row Pending Related Case
LOS ANGELES — Granting a stay in a suit over the alleged mishandling of reinsurance billings, a California federal judge on April 15 noted that the parties’ arguments of hardship “appear to stand in relative equipoise” and that the stay is appropriate given the ability of a related case “to resolve issues in this case.”
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April 20, 2022
Vice Chancellor: Liquidation Standard Not ‘Per Se’ Required For Rehab Plan Approval
WILMINGTON, Del. — In a 90-page opinion that he said was on an issue of first impression, a Delaware vice chancellor on April 18 ruled that in a delinquency proceeding under Delaware law, the so-called “Liquidation Standard does not operate as a per se requirement for” court approval of a rehabilitation plan.
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April 19, 2022
Follow-The-Fortunes Reinsurance Row Remanded To California State Court
LOS ANGELES — A little over two months after a reinsurer removed the case, a California federal judge on April 14 remanded a breach of contract suit over defense and indemnity payments to California state court upon the parties’ stipulation.
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April 19, 2022
Suit Over Losses From Fund Tied To Reinsurance Is Dismissed On Stipulation
FORT MYERS, Fla. — Following the parties’ April 13 stipulation of dismissal with prejudice, a Florida federal judge on April 14 dismissed the suit an LLC had filed alleging fraudulent inducement and negligent misrepresentation in connection with its “losses of nearly $20 million” from a fund “tied to the reinsurance business operated by Markel CATCo Reinsurance Limited.”
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April 14, 2022
Opposing Preclusion, Insurer Argues That Reinsurer Didn’t Follow Procedure
MONTGOMERY, Ala. — In a March 31 opposition to preclusion filed in an Alabama federal court, an insurer argues that it “has produced the requested information” and that the reinsurer didn’t follow the proper procedure in seeking sanctions in the breach of contract dispute; in its April 7 reply, the reinsurer contends in part that none of the insurer’s points warrants denial of the reinsurer’s motion to preclude.
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April 14, 2022
Petition To Stay Arbitration Denied In Row Over Reinsurance Recoverables
NEW YORK — In an unpublished decision, a New York justice on March 3 denied a petition to stay arbitration in a suit over uncollected reinsurance recoverables.
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April 13, 2022
Reinsurer Takes Fight Over Judgment In Asbestos Coverage Row To 2nd Circuit
ALBANY, N.Y. — After a New York federal judge mostly denied its post-trial motions in a long-running dispute over asbestos liabilities, reinsurer Clearwater Insurance Co. on April 12 appealed to the Second Circuit U.S. Court of Appeals.