COLUMBIA, S.C. — In an Oct. 1 brief in South Carolina federal court, an insurer denies allegations asserted in a contractual indemnification counterclaim by a bank being sued for its role as trustee of a reinsurance trust for an insolvent insurer (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).
MILWAUKEE — In a dispute over periodic payments, a Wisconsin federal judge on Sept. 26 granted a reinsurer’s claim for interpleader and awarded $4,000 to the reinsurer in attorney fees (American General Life Insurance Co. v. Amanda Hebard, et al., No. 18-654, E.D. Wis.).
OKLAHOMA CITY — Reinsurance intermediaries in a Sept. 26 motion ask that an Oklahoma federal court compel an insolvent insurer’s receiver to produce a settlement agreement regarding an underlying action as it relates to the receiver’s lawsuit alleging negligence in reinsurance services provided to the insurer (Oklahoma, et al. v. Axiom Re LP, et al., No. 17-0484, W.D. Okla.).
BOSTON — Underwriters subscribing to reinsurance contracts in an Oct. 1 petition request that a Massachusetts federal court confirm an arbitration award regarding sexual molestation losses asserted against a reinsured’s policyholder, Boy Scouts of America (BSA) (Certain Underwriters at Lloyd’s London v. Century Indemnity Co., No. 18-12041, D. Mass.).
MIAMI — In a Sept 27 opposition to an excess reinsurer’s motion to dismiss, an international health insurer argues that a Florida federal court has subject matter jurisdiction over the insurer’s breach of contract lawsuit (VIP Universal Medical Insurance Group Ltd. v. BF&M Life Insurance Company Ltd., et al., No. 17-24633, S.D. Fla.).
WASHINGTON, D.C. — In seeking leave to file an amended complaint to recover a $26 million arbitration award, a financial services company argues in a Sept. 17 reply brief that a District of Columbia federal judge did not previously issue a decision on the merits of its case because the judge held only that he lacked personal jurisdiction over reinsurers (Vantage Commodities Financial Services I, LLC v. Assured Risk Transfer PCC, LCC, et al., No. 17-01451, D. D.C.).
DETROIT — In a breach of contract dispute over coverage for asbestos claims, a reinsurer and insurer on Sept. 14 submitted to a Michigan federal court their agreed-upon discovery plan (Amerisure Mutual Insurance Co. v. Transatlantic Reinsurance Co., No. 18-11966, E.D. Mich.).
By Debra J. Hall and Robert M. Hall
NEW YORK — In a Sept. 13 motion for summary judgment, a reinsurer argues to a New York federal court that its cedent breached the reinsurance contract by failing to timely notify the reinsurer of an underlying dispute involving a trucking accident (Endurance Assurance Corp. v. Florists’ Mutual Insurance Co., et al., No. 16-09955, S.D. N.Y.).
SYRACUSE, N.Y. — A reinsurer and insurer have settled their dispute over coverage for underlying asbestos claims, according to a New York federal judge’s Sept. 18 order (Utica Mutual Insurance Co. v. R&Q Reinsurance Co., No. 15-270, N.D. N.Y.).
WASHINGTON, D.C. — In breach of contract disputes over reinsurance participation agreements (RPA), the U.S. Supreme Court on Oct. 1 denied petitions asking whether a choice-of-law clause imports “state substantive law without importing state rules impairing arbitration” or whether the clause incorporates “both state substantive law and state arbitration principles” (Applied Underwriters Captive Risk Assurance Company Inc. v. Citizens of Humanity, et al., No. 18-174; Applied Underwriters Inc., et al. v. Citizens of Humanity, et al., No. 18-175, U.S. Sup.).
BALTIMORE — In a Sept. 26 complaint filed in a Maryland federal court, underwriters subscribing to a facultative reinsurance certificate seek 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.).
BALTIMORE — A Maryland federal judge on Sept. 25 allowed a fraud claim to proceed in a dispute over a life insurer’s alleged hiding of its financial status under captive reinsurance schemes and the insurer’s cost of insurance (COI) rate increases (Leslie S. Rich v. William Penn Life Insurance Company of New York, No. 17-2026, D. Md., 2018 U.S. Dist. LEXIS 165057).
UTICA, N.Y. — In a dispute between a primary insurer and a reinsurer over settlements of asbestos claims, a New York federal judge on Sept. 26 denied summary judgment to the parties on various issues but dismissed the insurer’s extracontractual claims (Utica Mutual Insurance Co. v. Century Indemnity Co., No. 13-995, N.D. N.Y., 2018 U.S. Dist. LEXIS 165110).
GOSHEN, N.Y. — A New York justice on Sept. 24 dismissed claims against a reinsurer and its affiliates based upon a Nebraska forum selection clause in a reinsurance participation agreement (RPA) (Milmar Food Group II LLC, et al. v. Applied Underwriters Inc., et al., No. EF003101-2017, N.Y. Sup., Orange Co., 2018 N.Y. Misc. LEXIS 4100).
NEW YORK — Because a reinsurer’s obligations under reinsurance contracts follow an insurer’s expense‐supplemental obligations under umbrella policies, the Second Circuit U.S. Court of Appeals ruled Sept. 25 that the reinsurer’s liability is expense‐supplemental (Utica Mutual Insurance Co. v. Clearwater Insurance Co., Nos. 16-2535 & 16-2824, 2nd Cir., 2018 U.S. App. LEXIS 27311).
SAN DIEGO — In a California federal court case over breached reinsurance agreements from fraudulent transfers, a reinsurer in a Sept. 21 summary judgment reply brief says an insurance broker’s former owners fail to present a genuine disputed material fact as to the reinsurer’s status as a creditor (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al., No. 16-3038, S.D. Calif.).
NEW YORK — In seeking to dismiss a New York federal court case alleging breach of policies by unlawful increase of premium costs to recoup costs associated with an acquisition, a life insurer argues on Sept. 21 that the plaintiffs’ claims do not arise out of specific business activities in New York (Derek Fan, et al. v. Phoenix Life Insurance Co., et al., No. 18-01288, S.D. N.Y.).
COLUMBIA, S.C. — A bank sued for its role as trustee of a reinsurance trust for an insolvent insurer on Sept. 20 responded to an insurer’s first amended complaint in a South Carolina federal court and counterclaimed for contractual indemnification (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).
NEW YORK — A New York federal judge on Sept. 20 issued a stipulation of dismissal without prejudice to certain claims in a breach of contract lawsuit regarding claims under facultative reinsurance contracts for losses of $2.5 million (Continental Insurance Company of New Jersey, et al. v. National Union Fire Insurance Company of Pittsburgh, PA, No. 18-4715, S.D. N.Y.).