Mealey's Reinsurance

  • June 02, 2021

    Arbitration Provision In Reinsurance Agreement Is Not Enforceable, Insurer Says

    DETROIT — A health and life insurer seeking indemnity for more than $950,000 under a medical excess reinsurance agreement contends in a May 27 opposition to a reinsurer’s motion to dismiss and motion to stay discovery that the motion to dismiss should be denied as the reinsurance agreement’s arbitration provision cannot be enforced and that the motion to stay discovery is futile as the reinsurer cannot succeed on its motion to dismiss.

  • June 02, 2021

    New York Appellate Panel Says Bank Barred From Filing Suit Against Reinsurers

    NEW YORK — A New York appellate panel on June 1 affirmed a trial court’s dismissal of a bank’s lawsuit against its reinsurers, agreeing with the trial court that the reinsurance contracts did not include a provision allowing the original insured to file suit against the reinsurers.

  • June 02, 2021

    Reinsurer, Plan Administrator Stipulate To Dismissal Of ERISA, Reinsurance Dispute

    STATESVILLE, N.C. — A reinsurer and a third-party health insurance administrator on May 25 filed a stipulation of dismissal in North Carolina federal court following a settlement, agreeing to dismiss with prejudice all claims in the dispute over whether the third-party health insurance administrator breached its fiduciary duties under the Employee Retirement Income Security Act by failing to process and pay a health plan participant’s expenses when the expenses could not be claimed under a reinsurance policy.

  • June 01, 2021

    Insurer Objects To Reinsurer’s Motion To Amend Answer, Add Counterclaim

    MONTGOMERY, Ala. — A reinsurer’s motion to amend its answer to add a declaratory judgment counterclaim related to two additional reinsurance billings submitted by a nonprofit municipal insurer should be denied because the reinsurer had the opportunity to add the counterclaim to its amended answer but failed to do so, the nonprofit municipal insurer contends in a May 26 response to the reinsurer’s motion.

  • June 01, 2021

    Subsidiary Of Reinsurance Group Says No Coverage Due For Environmental Claim

    NEWARK, N.J. — A subsidiary of a reinsurance group asserts in a May 19 answer to an amended complaint filed in New Jersey federal court that it owes no coverage for an environmental investigation and remediation at an insured property because the insured failed to give timely notice of a claim and failed to disclose material facts prior to the issuance of the policy at issue.

  • May 27, 2021

    New York Justice Confirms Finding That Reinsurer Must Continue Paying Claims

    NEW YORK — A New York Supreme Court justice on May 18 confirmed an arbitration panel’s finding that a reinsurer is obligated to continue paying a reinsured’s claims under a catastrophe excess-of-loss reinsurance contract and dismissed the reinsurer’s complaint after determining that certain provisions of the trust agreement, which the reinsurer claimed relieved it of its coverage obligation, were considered and litigated as part of the arbitration proceeding.

  • May 27, 2021

    Judge Again Extends Stay Of SEC’s Case Over Schemes To Defraud Insurers, Trusts

    NEW YORK — A federal judge in New York on April 26 again granted an application by the U.S. Department of Justice seeking extension of a stay of the Securities and Exchange Commission’s lawsuit alleging that two individuals “perpetrated multiple schemes to defraud their advisory clients, which were insurance companies and reinsurance trusts.”

  • May 26, 2021

    Insolvent Insurer Withdraws 2nd Circuit Appeal Following Stay Of $49M Judgment

    NEW YORK — Following a federal judge in New York’s stay of a $49,346,803 judgment entered against an insurer in a decades-old environmental contamination coverage dispute in light of a recent liquidation order, the judge on April 27 issued a mandate granting the insurer’s stipulation to withdraw its appeal arguing to the Second Circuit U.S. Court of Appeals that it cannot secure a supersedeas bond because it is insolvent.

  • May 25, 2021

    Self-Insured Association Appeals Ruling Entered In Favor Of Reinsurer

    TAMPA, Fla. — A self-insured intergovernmental risk management association is appealing a Florida federal judge’s ruling that a reinsurer does not owe coverage for an underlying civil rights lawsuit filed against the association, according to the association’s May 24 notice of appeal to the 11th Circuit U.S. Court of Appeals.

  • May 20, 2021

    Reinsurer Seeks Attorney Fees, Costs Following Finding That No Coverage Is Owed

    TAMPA, Fla. — A reinsurer on May 12 filed a motion for attorney fees in Florida federal court, contending that a self-insured intergovernmental risk management association should be ordered to pay its attorney fees and costs of more than $300,000 incurred to defend itself against the association’s breach of contract suit because the association cannot show that the reinsurer acted in bad faith in making an offer of judgment in 2018 despite the reinsurer’s contention that no coverage was afforded for an underlying civil rights lawsuit.

  • May 20, 2021

    Reinsurer, Plan Administrator Settle Breach Of Fiduciary Duty, Reinsurance Dispute

    STATESVILLE, N.C. — A reinsurer and a third-party health insurance administrator on May 7 notified a North Carolina federal court that they have reached a settlement resolving a dispute over whether the third-party health insurance administrator breached its fiduciary duties under the Employee Retirement Income Security Act by failing to process and pay a health plan participant’s expenses when the expenses could not be claimed under a reinsurance policy.

  • May 20, 2021

    Reinsurer Says Insurer’s Statutory Claims Are Barred Under Texas Insurance Code

    GALVESTON, Texas — A reinsurer contends in a May 7 supplemental brief that a health insurer’s statutory claims in a dispute over a health maintenance organization (HMO) excess reinsurance agreement must be dismissed because the Texas Insurance Code does not permit the health insurer to assert the statutory claims against the reinsurer.

  • May 19, 2021

    Insurer Ordered To Respond To Reinsurer’s Motion To Amend Answer, Add Counterclaim

    MONTGOMERY, Ala. — An Alabama federal judge on May 17 ordered a nonprofit municipal insurer to respond to a reinsurer’s motion to amend its answer to add a declaratory judgment counterclaim related to two additional reinsurance billings submitted by the insurer.

  • May 19, 2021

    Insurance Agent, Reinsurer Reach Tentative Settlement In ‘Claw Back’ Premium Dispute

    FORT WORTH, Texas — A Texas federal judge on May 17 granted a motion to abate a suit filed by an insurance agent against a reinsurer and involving a dispute over “claw back” premium payments after the parties notified the court that they reached a tentative settlement.

  • May 18, 2021

    Reinsurance Trust’s Investors Say Insurer, Reinsurer’s Suit Must Be Dismissed

    NEW YORK — An insurer and reinsurer’s second amended complaint filed in New York federal court seeking to enforce a promissory note worth more than $4.6 million tied to a reinsurance arrangement for an in-force book of disability income business should be dismissed because the insurer and reinsurer fail to allege facts in support of their claims that the investors breached their contractual and fiduciary duties under a promissory note, the investors maintain in a May 17 reply in support of their motion to dismiss.

  • May 18, 2021

    Reinsurer Seeks To Stay Discovery Until Motion To Dismiss Is Resolved

    DETROIT — A reinsurer filed a motion to stay discovery on May 14 in a suit filed in Michigan federal court by a health and life insurer seeking indemnity for more than $950,000 under a medical excess reinsurance agreement, contending that a stay of discovery is warranted until the reinsurer’s motion to dismiss is resolved.

  • May 18, 2021

    Oral Arguments Held In $2.7M Asbestos Billings, Reinsurance Certificate Dispute

    NEW YORK — The Second Circuit U.S. Circuit Court of Appeals on May 5 heard oral arguments in a dispute over whether Munich Reinsurance America Inc. breached its contract in denying Utica Mutual Insurance Co.’s billings of $2.7 million for asbestos bodily injury claims under a 1973 reinsurance certificate.

  • May 18, 2021

    Judge Reschedules Jury Trial In Asbestos, Reinsurance Coverage Dispute

    ALBANY, N.Y. — A New York federal judge on May 11 granted a reinsurer’s letter motion to postpone a trial date for a week in a dispute between an insurer and a reinsurer over whether defense costs paid on behalf of an insured for asbestos liabilities are covered under the reinsurer’s policies.

  • May 17, 2021

    Insurers, Reinsurer Cannot File Summary Judgment Motion On Standing, Judge Says

    FRESNO, Calif. — A California federal judge on May 13 denied a motion to reopen law and motion to file a renewed motion for summary judgment on the issue of standing in a suit filed by a class of mortgagors who allege that private mortgage insurers and a captive reinsurer violated anti-kickback provisions of the Real Estate Settlement Procedures Act (RESPA) after determining that the insurers and captive reinsurer failed to show any justification for their untimeliness in raising the standing issue.

  • May 14, 2021

    Georgia High Court Accepts Review Of Decision Vacating $462,971 Arbitration Award

    ATLANTA — The Georgia Supreme Court on April 5 granted a car dealership and reinsurer’s petitions for writs of certiorari, agreeing to review an appeals court’s reversal of confirmation of a $462,781 arbitration award.

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