Mealey's Reinsurance

  • March 01, 2022

    Government Files Answer In Suit Against IRS Over Microcaptive Insurance, Investigation

    WEST PALM BEACH, Fla. — In a Feb. 24 answer to a tax attorney’s complaint in a Florida federal court that asserts that the Internal Revenue Service treated her unfairly, disclosed confidential return information and “has sought to destroy the microcaptive insurance industry,” the government counterclaims against her for more than $10 million in unpaid penalties.

  • February 28, 2022

    Texas Magistrate Allows New Affirmative Defenses In HMO Excess Reinsurance Row

    GALVESTON, Texas — After a Texas federal magistrate judge partly granted its request to file an amended answer, a reinsurer on Feb. 23 asserted additional affirmative defenses in a breach of contract suit over HMO excess reinsurance; the reinsurer also filed a Feb. 22 motion seeking a request for international judicial assistance regarding a remote deposition.

  • February 25, 2022

    Parties Make Stipulation, See In Limine Motions Denied In Reinsurance Billings Row

    BOSTON — With a jury trial scheduled to start March 1 in Massachusetts federal court, parties in a reinsurance billings dispute over the allocation of a $120 million environmental claims settlement on Feb. 22 jointly stipulated to the dismissal of all claims against two reinsurers; on Feb. 23, the judge denied each motion in limine (MIL) filed in the case, five of them without prejudice.

  • February 25, 2022

    Liquidators Note Settlement, Updated Plans In Bermuda Schemes Involving Reinsurer

    NEW YORK — Announcing a settlement agreement that they say is key to their plan, the joint provisional liquidators (JPLs) for a Bermuda reinsurer and related entities collectively known as CATCo Group on Feb. 23 asked a New York federal bankruptcy court to enter an order giving full force and effect to Bermuda schemes of arrangement and approving releases, permanent injunctions, financing and related relief.

  • February 24, 2022

    Government Asks For Strike, Default Judgment In Crop Reinsurance, FIRREA Suit

    YAKIMA, Wash. — After the defendants in a suit over crop reinsurance and alleged violations of the Financial Institutions Reform and Recovery Enforcement Act (FIRREA) filed an answer the same day the government moved for entry of default against them, the government on Feb. 18 asked a Washington federal judge to strike the answer and enter final default judgment totaling $1,818,084 based on the defendants’ “repeated bad faith conduct.”

  • February 23, 2022

    Insurer Urges 2nd Circuit To Uphold ‘All Sums’ Ruling Against English Reinsurer

    NEW YORK — Asserting that an English reinsurer asks the Second Circuit U.S. Court of Appeals “not to apply English law, but radically to extend it,” an insurer argues in a Feb. 18 appellee brief that a New York federal court’s grant of summary judgment over allocation of an environmental claims settlement should be affirmed.

  • February 17, 2022

    Company Files California Suit Over Alleged Reinsurance Scheme Involving Security

    LOS ANGELES — A staffing company on Jan. 6 filed a complaint in a California state court against four entities it said are integrated enterprises, alleging that one is not licensed to conduct insurance business in the state and the others “aided and abetted” an “unfiled, unapproved, and unauthorized reinsurance scheme.”

  • February 17, 2022

    Breach Of Contract Suit Filed Over Almost $7M In Facultative Reinsurance Billings

    NEW HAVEN, Conn. — First State Insurance Co. on Feb. 9 sued SCOR Reinsurance Co. in Connecticut federal court for breach of contract, alleging that SCOR owes it $6,971,768 pursuant to the terms of a facultative reinsurance certificate.

  • February 16, 2022

    $92.6M Class Settlement Over Life Insurance COI Increase Gets Preliminary OK

    NEW YORK — A New York federal judge on Feb. 3 granted preliminary approval of a class action settlement in a suit filed by a life insurance policyholder challenging a 2016 cost of insurance (COI) increase; the proposal includes a $92.5 million payment by administrator and reinsurer Lincoln National Corp., a five-year COI freeze and a waiver of policy validity defenses.

  • February 16, 2022

    Parties Make In Limine Arguments In Reinsurance Billings Suit Over Allocation

    BOSTON — Arguing about evidence and expert witnesses in advance of a jury trial scheduled to start March 1 in Massachusetts federal court, parties in a reinsurance billings dispute over the allocation of a $120 million environmental claims settlement filed motions in limine on Jan. 31 and opposition on Feb. 7 in Massachusetts federal court.

  • February 16, 2022

    Judge Continues Stay In Suit Over Losses From Fund Tied To Reinsurance

    FORT MYERS, Fla. — Granting a joint motion in which the parties report “actively negotiating a global settlement to resolve this case and other pending litigation,” a Florida federal judge on Feb. 14 continued a stay until May 19; an LLC filed the suit against former Markel CATCo Investment Management Ltd. CEO Anthony Belisle, 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.”

  • February 16, 2022

    Judge: Reinsurer Waived Entitlement In Injunction Suit; Loan Didn’t Violate TRO

    SAN DIEGO — A temporary restraining order (TRO) did not prohibit a challenged loan agreement, and the plaintiff waived entitlement to the benefit of an injunction by authorizing a transfer from escrow, a California federal judge ruled Feb. 2, granting the defendants’ motion to dismiss the second amended complaint for failure to state a claim.

  • February 15, 2022

    Plaintiffs: EquityComp Breach, Misrepresentation Claims Sufficiently Pleaded

    OMAHA, Neb. — Arguing that they sufficiently pleaded existence of a promise and that regulatory actions in various states are relevant to their asserted claims regarding a program called EquityComp, related moving and storage corporations on Feb. 11 fought a motion to dismiss their breach of contract and misrepresentation suit in a Nebraska federal court.

  • February 15, 2022

    Amended Answer Sought, Fought In Breach Suit Over HMO Excess Reinsurance

    GALVESTON, Texas — In a Jan. 18 motion seeking leave to plead more affirmative defenses and a request for declaratory relief in a breach of contract suit in Texas federal court, a reinsurer argues that amending the answer would not delay the proceedings or prejudice the other party; in a Feb. 11 opposition, a health insurer argues that the reinsurer’s motion is “an improper and delayed attempt to pursue its defense costs.”

  • February 14, 2022

    2nd Circuit Won’t Reconsider Defense Costs Ruling That Abandoned Bellefonte

    NEW YORK — The Second Circuit U.S. Court of Appeals on Feb. 11 denied a petition for panel rehearing or rehearing en banc of a decision that a reinsurer had argued “misapprehended the rationale” of longstanding precedents abandoned in the ruling that requires the reinsurer to pay defense costs in excess of certificates’ liability limits based on follow-form clauses.

  • February 11, 2022

    Asbestos Defense, Indemnity Disputed In Reinsurance Follow-The-Fortunes Row

    LOS ANGELES — On Feb. 7, a reinsurer filed an answer denying all allegations in a breach of contract suit over defense and indemnity payments and simultaneously removed the case from California state court to California federal court on the basis of diversity jurisdiction.

  • February 11, 2022

    9th Circuit Appeal Over Jurisdiction Implications Of Reinsurance Dropped

    SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on Feb. 10 granted a voluntary dismissal that the parties stipulated to just days before the scheduled Feb. 11 oral argument in an appeal that centered on whether unrelated reinsurance obligations confer Montana personal jurisdiction over an Iowa insurer.

  • February 11, 2022

    Physical Loss Argued Before Vermont High Court In COVID-19 Reinsurance Dispute

    MONTPELIER, Vt. — A Vermont Supreme Court panel on Jan. 26 heard oral arguments on a dispute over COVID-19 pandemic losses, with the appellants arguing that under Vermont law, their allegations as to losses under “all risk” reinsurance contracts that cover “direct physical loss or damage to property” were sufficient to survive judgment on the pleadings, and the reinsurers contending that what the appellants allege is not physical loss or damage to property.

  • February 10, 2022

    Suit Over Power Plant Incident Dismissed For Failure To Show Timely Service On GE

    ATLANTA — After the plaintiffs failed to respond to an order to show service on defendants within the prescribed time, a Georgia federal judge on Feb. 9 dismissed without prejudice a suit filed by a group of insurers, reinsurers and retrocessionaires as subrogees of the owner of an Algerian power plant; the suit had sought no less than $28 million in damages against General Electric International Inc. (GE International) and related entities in relation to a November 2019 incident.

  • February 09, 2022

    Intermediary Claims Breach Of Contract Against Foreign Reinsurer Over Commissions

    NEW YORK — An intermediary that helps clients access the U.S. program reinsurance market sued a foreign reinsurer in New York federal court on Feb. 4, alleging that the reinsurer “purported to terminate the binding authority agreements and now refuses to pay” the agreed commissions.

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