Mealey's Reinsurance

  • November 30, 2020

    Judge Extends Deadlines Except For Jury Trial In Reinsurance Billings Case

    BOSTON — Although a Massachusetts federal judge on Nov. 24 approved new case deadlines, a trial date remains set for May 2021 between an insurer and reinsurers in their reinsurance billings dispute over the insurer’s allocation of a $120 million environmental claims settlement (Certain London Market Company Reinsurers v. Lamorak Insurance Co., No. 18-10534, D. Mass.).

  • November 30, 2020

    Payroll Company Asks For Dismissal From Self-Insured Employee Benefit Plan Case

    SANTA ANA, Calif. — A payroll services company in a Nov. 24 motion seeks dismissal as a third-party defendant from a California federal court case between trucking companies and third-party administrators for a self-insured employee benefit plan because it was not fiduciary that had a role in any alleged negligent failure to obtain reinsurance coverage for the plans (A&I Transport, Inc., et al. v. KG Administrative Services, Inc., et al., No. 19-1992, C.D. Calif.).

  • November 24, 2020

    Reinsurer, Former Officers: No Alleged Misconduct Motive In Securities Class Action

    CAMDEN, N.J. — A securities class action rests on the “implausible inference” that a reinsurer’s modeling and estimation choices “amount to deliberate under-reserving and fraud,” the reinsurer and former officers argue in a Nov. 23 reply brief to a New Jersey federal court, seeking dismissal for a lack of motive for any alleged misconduct (In re Maiden Holdings, Ltd. Securities Litigation, No. 19-05296, D. N.J.).

  • November 23, 2020

    Government Is Not Allowed To Set Off ACA Risk-Corridor Liabilities, Insolvent Insurers Say

    WASHINGTON, D.C. — A group of largely insolvent insurers argue in their Nov. 20 motion to dismiss with the U.S. Court of Federal Claims that the U.S. government is reverse-preempted under the McCarran-Ferguson Act from seeking setoffs of debts against risk-corridor liabilities owed to the insurers under the Patient Protection and Affordable Care Act (ACA) risk corridor (Health Republic Insurance Company v. United States, No. 16-259, Fed. Clms.).

  • November 23, 2020

    Willis Re’s Former Employee Denied TRO Over Enforcement Of Nonsolicitation Clause

    SAN JUAN, Puerto Rico — A Puerto Rico federal judge on Nov. 18 denied a reinsurance broker’s motion for a temporary restraining order (TRO) precluding Willis Re Inc. from enforcing a nonsolicitation clause in the broker’s restated employment agreement (Anthony Phillips v. Willis Re Inc., No. 20-1635, D. Puerto Rico, 2020 U.S. Dist. LEXIS 217027).

  • November 18, 2020

    Reinsurer: Remand Is Not Needed Over Bad Faith Claim In Plane Crash Suit

    MIAMI — An English reinsurer argues in a Nov. 17 opposition brief that a Florida federal court has federal treaty subject matter jurisdiction over a proposed third-party bad faith complaint from individuals who were awarded a $844 million default judgment in connection with a plane crash near Medellin, Colombia, and, thus, remand to state court is improper (Priscila Elen De Souza Lima, et al. v. Linea Aerea Merida Internacional De Aviacion, et al., No. 20-23631, S.D. Fla.).

  • November 17, 2020

    New York Appeals Panel Stays Liquidation Order Against Taxi Insurer

    NEW YORK — The First Department New York Supreme Court Appellate Division on Nov. 12 granted a stay of a liquidation order against Park Insurance Co. pending the taxi insurer’s appeal (Maria Vullo v. Park Insurance Company, No. 2020-03868, N.Y. Sup., App. Div., 1st Dept.).

  • November 17, 2020

    Reinsurer: Prejudgment Interest Should Start 90 Days After Insurer’s Billings

    NEW YORK — Following a judgment that it is responsible for part of a $35 million asbestos claims settlement, a reinsurer asks a New York federal judge in a Nov. 12 letter to award prejudgment interest to an insurer beginning 90 days after submission of the invoices (Fireman’s Fund Insurance Company v. OneBeacon Insurance Company, No. 14-4718, S.D. N.Y.).

  • November 16, 2020

    Woman:  Excess Insurer, Reinsurer Must Indemnify In Personal Injury Lawsuit

    OKLAHOMA CITY — A plaintiff in a personal injury lawsuit tells an Oklahoma federal court in a Nov. 12 motion for summary judgment that an excess insurer owes coverage to a telecommunications company and that the insurer and a reinsurer have a duty to indemnify the telecommunications company in the underlying suit involving one of the company’s drivers (Star Insurance Company v. K&J Telecommunications, LLC, et al., No. 19-960, W.D. Okla.).

  • November 13, 2020

    Former New York Governor Prevails In Former AIG Chief’s Defamation Suit

    CARMEL, N.Y. — A former chairman and CEO of American International Group Inc. (AIG) cannot prove actual malice on the part of former New York Gov. Eliot L. Spitzer by “clear and convincing evidence” in his defamation suit arising out of accusations that the AIG chairman made improper reinsurance transactions, a New York justice held Nov. 12 (Maurice R. Greenberg v. Eliot L. Spitzer, No. 800004/2018, N.Y. Sup., Putnam Co., 2020 N.Y. Misc. LEXIS 8517).

  • November 13, 2020

    Judge Grants Leave To Add Claims For Bad Faith, IFCA Violations Against Reinsurer

    SEATTLE — An association of state public entities was granted leave by a Washington federal judge on Nov. 12 to amend its complaint to add claims for bad faith claims handling and violations of the Washington Insurance Fair Conduct Act (IFCA) against its reinsurer (Washington Cities Insurance Authority v. Ironshore Indemnity Inc., No. 19-54, W.D. Wash.).

  • November 13, 2020

    Insurer: $2.7M Asbestos Billings Are Covered Under Reinsurance Certificate

    NEW YORK — Utica Mutual Insurance Co. argues in its Nov. 5 reply brief that the Second Circuit U.S. Court of Appeals should apply the contract language as drafted in a 1973 reinsurance certificate and, thus, reject a reinsurer’s “invitation to create blanket interpretations for all reinsurance and insurance contracts without reference to that language” (Utica Mutual Insurance Company v. Munich Reinsurance America, Inc., No. 19-1241, 2nd Cir.).

  • November 13, 2020

    Reinsurer Cannot Relitigate Reimbursement Claim, Railroad Company Says

    SPRINGFIELD, Ill. — A railroad company on Oct. 20 filed a complaint asking an Illinois federal court for declaratory and injunctive relief barring the Illinois Mine Subsidence Insurance Fund (IMSIF) from pursuing litigation for reimbursement over an alleged mine subsidence claim because the reinsurer is collaterally estopped from relitigating the claim (Union Pacific Railroad Company v. Illinois Mine Subsidence Insurance Fund, No. 20-3281, C.D. Ill.).

  • November 13, 2020

    Insurer, Reinsurer Seek To Enforce Investor’s $4.6M Promissory Note

    NEW YORK — An insurer and a reinsurer filed a complaint on Nov. 4 asking a New York federal court to enforce a promissory note worth more than $4.6 million tied to their reinsurance arrangement for an in-force book of disability income business (Pan-American Life Insurance Company, et al. v. Antarctica Capital Management, LLC, et al., No. 20-9236, S.D. N.Y.).

  • November 13, 2020

    California Insurance Company Files Anti-SLAPP Motion In Light Of Rehabilitation Plan

    REDWOOD CITY, Calif. — In response to the California insurance commissioner’s recent rehabilitation plan against it, California Insurance Co. (CIC) filed an anti-SLAPP motion on Oct. 29 in a California state court, alleging that political motivations were behind its conservatorship and seeking to protect its First Amendment rights (Insurance Commissioner of the State of California v. California Insurance Company, No. 19CIV06531, Calif. Super., San Mateo Co.).

  • November 11, 2020

    Reinsurer, Insurance Agent’s Case Over ‘Claw Back’ Payments Is Ripe, Judge Says

    FORT WORTH, Texas — A declaratory judgment dispute between a Cayman Islands reinsurer and an insurance agent regarding “claw back” payments in a quota share reinsurance agreement is ripe, a Texas federal judge held Nov. 10, declining to dismiss (Contractor Managing General Insurance Agency, Inc. v. Greenlight Reinsurance, Ltd., No. 20-996, N.D. Texas).

  • November 10, 2020

    Trucking Companies Seek Costs For Compelling Plan Administrators To Discovery

    SANTA ANA, Calif. — Trucking companies ask a California federal court in a Nov. 9 motion to order third-party administrators for a self-insured employee benefit plan to reimburse $5,541.25 in expenses incurred by the companies in filing a motion to compel the administrators to discovery in their dispute alleging a negligent failure to obtain reinsurance coverage for the plans (A&I Transport, Inc., et al. v. KG Administrative Services, Inc., et al., No. 19-1992, C.D. Calif.).

  • November 09, 2020

    Trust: Harm Was Not Part Of Class Settlement For Life Insurance Fraud Scheme

    RICHMOND, Va. — A family trust argues to the Fourth Circuit U.S. Court of Appeals in a Nov. 6 reply brief that a deficit account harm that is distinct from a cost of insurance (COI) harm was not litigated or negotiated as part of a class settlement for an alleged life insurance fraud scheme that shifted debt to reinsurers (1988 Trust for Allen Children Dated 8/8/88 – Marianne E. & Laurie Allen and Nora V. Gitz, as Trustees v. Banner Life Insurance Co., et al., No. 20-1630, 4th Cir.).

  • November 09, 2020

    COMMENTARY: Can Businesses ‘Waive’ Goodbye To COVID 19 Liability? Basic Principles Of Third Party Liability Waivers And CGL Insurance Protections

    By Gabrielle Sigel, Jan A. Larson, Sara M. Stappert and Anna W. Margasinska

  • November 09, 2020

    Hedge Funds Liquidators: Punitive Damages, Incentive Fees Should Not Be Excluded

    NEW YORK — Before trial in an aiding and abetting lawsuit over the collapse of hedge funds, the hedge funds liquidators argue in a Nov. 5 omnibus sur-reply that a New York federal court should decline a request by a former member of Platinum Management (NY) LLC to preclude evidence on incentive fees and punitive damages (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

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