Mealey's Reinsurance

  • January 19, 2022

    Reconsideration Motion Disputed In Reinsurance Row Over Interference, Bad Faith

    CHICAGO — In a Jan. 18 filing arguing against reconsideration and clarification of a dismissal order, two corporations that an Illinois federal judge ruled are a reinsurer’s agents contend that the “frivolous” motion “contains only misrepresentations masquerading as new evidence and repetitions of arguments already presented to, and rejected by, the Court.”

  • January 18, 2022

    Insurer’s Liquidators Seek Nearly $1M In Fees Over Motion To Compel

    NEW YORK — In statements dated Sept. 24 and Nov. 22 but filed as part of the public case docket on Jan. 7, the joint provisional liquidators (JPLs) of Bermuda insurer and reinsurer PB Life and Annuity Co. Ltd. (PBLA) and other debtors argue in New York federal bankruptcy court that they are entitled to close to $1 million in attorney fees for work on a motion to compel that was necessitated by “egregious conduct.”

  • January 18, 2022

    Dismissal Sought In Breach, Misrepresentation Suit Over EquityComp Program

    OMAHA, Neb. — Arguing in part that the plaintiffs fail to specify any alleged breach of a reinsurance participation agreement (RPA), defendants in a breach of contract and misrepresentation suit regarding a program called EquityComp on Jan. 7 asked a Nebraska federal court to dismiss the case for failure to state a claim.

  • January 14, 2022

    Bank: Challenged Mortgage Loan, Force-Placed Insurance Actions Were Authorized

    SACRAMENTO, Calif. — Arguing in part that an agreement gave it the right to take the challenged actions, Bank of America N.A. (BANA) on Jan. 12 moved in California federal court for dismissal of all claims against it in a putative class action that alleges unfair and deceptive practices connected to home mortgage loan servicing and that a reinsurance program does not serve a legitimate purpose.

  • January 14, 2022

    Reinsurer In Misconduct Settlement Row:  Petitions Fit ‘Claim’ Definitions

    FLINT, Mich. — Opposing partial judgment on the pleadings in a suit over indemnification arising from a $9.25 million settlement of sexual misconduct claims, a reinsurer on Jan. 12 told a Michigan federal court that a student’s petitions fit the definition of “claim” under both certificates at issue and that all claims count as a single one made in 2013.

  • January 14, 2022

    Life Insurance Class Settlement Denied Preliminary OK Over Attorney Fee Issue

    NEW YORK — Citing deficiencies including inadequate description of “the maximum amount of attorney’s fees that class counsel intends to seek,” a New York federal judge on Jan. 11 denied without prejudice a motion for preliminary approval of a class action settlement in a policyholder’s suit over a 2016 cost of insurance (COI) increase for life insurance.

  • January 13, 2022

    Arguing That Bellefonte Remains Good Law, Reinsurer Seeks 2nd Circuit Rehearing

    NEW YORK — A reinsurer on Jan. 11 sought rehearing of a Second Circuit U.S. Court of Appeals decision it said was among the industry’s most anticipated in years, arguing that the panel “misapprehended the rationale” of longstanding precedents abandoned in the ruling requiring it to pay defense costs in excess of certificates’ liability limits based on follow-form clauses; alternatively, the reinsurer sought rehearing en banc, arguing that the decision is “the outlier disturbing decades of uniformity.”

  • January 12, 2022

    Insurer To 6th Circuit: Arbitrability At Issue In Reinsurance Dispute

    CINCINNATI — Arguing that the case “presents a close question on the distinction between procedural and substantive arbitrability,” a health and life insurer on Jan. 10 asked the Sixth Circuit U.S. Court of Appeals to reverse a Michigan federal court’s order dismissing a dispute over a medical excess reinsurance agreement.

  • January 10, 2022

    Reinsurer Agrees To $92.5M Life Insurance Class Settlement; Preliminary OK Sought

    NEW YORK — A life insurance policyholder who challenged a 2016 cost of insurance (COI) increase on Jan. 6 moved in a federal court in New York for preliminary approval of a class action settlement; 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.

  • January 06, 2022

    Reinsurer Continues Argument Against Follow The Settlements In 2nd Circuit Reply Brief

    NEW YORK — In a Dec. 8 appellant reply brief urging reversal of a New York federal judge’s grant of summary judgment, a reinsurer says that in a different case, the Second Circuit U.S. Court of Appeals rejected the “risk of loss” allocation argument advanced by an excess insurer in the instant dispute over an asbestos claims settlement allocation.

  • January 05, 2022

    11th Circuit Eyes April Argument In Wrongful Acts Reinsurance Row

    ATLANTA — Oral argument in a dispute between a self-insured intergovernmental risk management association and a reinsurer over issues including duty to defend, possessory interest and the follow-the-fortunes doctrine is tentatively set for the week of April 4 in the 11th Circuit U.S. Court of Appeals, according to a Dec. 21 notice to counsel.

  • January 05, 2022

    Denying Rehearing, 2nd Circuit Lets Securities Fraud Conviction Reinstatements Stand

    NEW YORK — Letting stand its ruling that vacated both a grant of new trials and a judgment of acquittal by a New York federal court, the Second Circuit U.S. Court of Appeals on Dec. 29 denied petitions for panel rehearing or rehearing en banc from two former hedge fund executives convicted of charges including securities fraud in an alleged scheme that involved a reinsurer and related entities.

  • January 05, 2022

    Suit Over Losses From Fund Tied To Reinsurance Stayed For Bermuda Decision

    FORT MYERS, Fla. — Granting an unopposed motion by a former Markel CATCo Investment Management Ltd. CEO, a Florida federal judge on Dec. 30 stayed a suit until Feb. 18 or the Bermuda Supreme Court’s issuance of a pending decision, whichever comes first; in the suit against the CEO, an LLC alleges 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.”

  • January 05, 2022

    Reconsideration Sought On Interference, Illinois Bad Faith Claims In Reinsurance Row

    CHICAGO — Citing “newly discovered evidence” and claiming “a manifest error of law” in the suit over reinsurance claims, an insurer on Jan. 3 asked an Illinois federal judge to reconsider and clarify parts of a dismissal order related to its claims of bad faith refusal to pay under the Illinois Insurance Code and tortious interference with contracts.

  • December 30, 2021

    Bifurcation Argued In Mortgagors’ RESPA Claims Suit Over Captive Reinsurance

    FRESNO, Calif. — Pretrial wrangling in a long-running class action over captive reinsurance agreements continued between Dec. 16 and Dec. 23 in a California federal court, with the parties disputing whether the trial should be bifurcated into liability and damages phases and filing arguments and responses regarding pending motions to decertify the class and to strike allegedly untimely evidence.

  • December 30, 2021

    Abandoning Bellefonte, 2nd Circuit Affirms Defense Costs Follow-Form Ruling

    NEW YORK — The follow-form clauses in disputed facultative reinsurance certificates require the reinsurer to pay its proportionate share of an insurer’s defense costs in excess of liability limits, a Second Circuit U.S. Court of Appeals panel affirmed Dec. 28, saying a New York Court of Appeals ruling rendered two previous cases that are inconsistent with standard rules of contract interpretation “no longer valid law in our circuit.”

  • December 28, 2021

    Jury Selection Set In Aiding, Abetting Lawsuit Over Hedge Funds Collapse

    NEW YORK — A New York federal judge has scheduled jury selection for May 2 in an aiding and abetting lawsuit over the collapse of hedge funds, the court docket shows.

  • December 28, 2021

    En Banc Court Upholds Denial Regarding Asset Allocation Under Pennsylvania Law

    HARRISBURG, Pa. — Overruling exceptions filed by the statutory liquidator, a Pennsylvania court ruling en banc on Dec. 22 reaffirmed a panel decision denying authorization to allocate assets from insolvent insurers’ estates to pay policyholder claims for benefits that exceed applicable statutory guaranty association limits and accrue more than 30 days after the insurance policies were terminated by the liquidations.

  • December 28, 2021

    Settlement In Principle Reached In Reinsurance Suit Over Asbestos Claims

    DETROIT — The parties in a reinsurance dispute over asbestos claims have reached a settlement in principle following mediation with a special master, according to a Dec. 22 stipulated order filed in a Michigan federal court.

  • December 22, 2021

    Reinsurer:  9th Circuit Allows Citizenship Pleading ‘On Information And Belief’

    SAN DIEGO — The plaintiff in a case over a debt allegedly owed under a series of reinsurance agreements on Dec. 20 sought leave from a California federal judge to amend its complaint to allege diversity jurisdiction “on information and belief,” citing a lack of information in the public record.

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