Mealey's Reinsurance

  • September 30, 2020

    Georgia High Court Review Over Vacating Of $462,971 Arbitration Award Is Opposed

    ATLANTA — An administrator of vehicle service contracts and a reinsurance program on Aug. 24 pushed back in two responses to a car dealership and reinsurer's efforts to have the Georgia Supreme Court review a reversal of confirmation for their $462,781 arbitration award on the basis that an arbitrator "unlawfully departed" from a producer agreement's terms on the administration of vehicle service contracts and reinsurance program (Adventure Motorsports Reinsurance Ltd., et al. v. Interstate National Dealer Services Inc., Nos. S21C0015 & S21C0008, Ga. Sup.).

  • September 28, 2020

    COMMENTARY: What Is The Practical Effect Of An Honorable Engagement Clause?

    By Robert M. Hall

  • September 29, 2020

    Magistrate Judge Issues Protective Orders In Disputes Between Reinsurer, Insurers

    LOS ANGELES — A California federal magistrate judge on Sept. 28 granted stipulated protective orders in two cases filed by four insurers against a reinsurer and the reinsurer's parent companies over a billings dispute under reinsurance agreements (California Capital Insurance Company, et al. v. Enstar Holdings [US] LLC, et al., No. 20-7806, California Capital Insurance Co., et al. v. Maiden Reinsurance North America, Inc., et al., No. 20-1264, C.D. Calif.).

  • September 29, 2020

    Financial Services Company: 'Reinsurers Are Real Insurers' In Credit Policy Structure

    WASHINGTON, D.C. — In a breach of contract dispute over a $26 million award, a financial services company says in a Sept. 28 reply brief to its cross-motion for partial summary judgment in a District of Columbia federal court that it purchased a credit insurance policy based on the explicit agreement that reinsurers would pay for covered losses and that the "architect" of the credit policy structure confirmed that "the reinsurers are the real insurers" (Vantage Commodities Financial Services I, LLC v. Assured Risk Transfer PCC, LCC, et al., No. 17-01451, D. D.C.).

  • September 29, 2020

    Former Hedge Funds Executive Seeks To Bar Duplicative Claims From Jury Instructions

    NEW YORK — Prior to trial in a case over the collapse of hedge funds, a former member of Platinum Management (NY) LLC on Sept. 25 asked a New York federal court to exclude jury instructions on claims for fraud, constructive fraud, aiding and abetting breach of fiduciary duty and aiding and abetting fraud as duplicative and to consolidate two breach of fiduciary claims so a jury will be charged with only one (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.).

  • September 28, 2020

    U.S. Government Seeks To Help Ecuador In Insurance Bribe Criminal Investigation

    WASHINGTON, D.C. — The U.S. government on Sept. 25 asked a District of Columbia federal court to allow it to collect evidence to support an investigation by authorities in Ecuador into allegations that individuals linked to a state-owned insurance company received $5.8 million in bribes and wire transfers for insurance and reinsurance contracts through the state-owned insurance company (In re application of USA, ML No: 20-1254, D. D.C.).

  • September 28, 2020

    New York Justice Places Park Insurance Company Into Liquidation

    NEW YORK — A New York justice ordered Park Insurance Co. into liquidation on Sept. 22, noting, among other reasons, that the taxi insurer's surplus had been reduced by $1.75 million for an unapproved reinsurance agreement with a related entity (Maria Vullo v. Park Insurance Company, No. 452877/2017, N.Y. Sup., New York Co., 2020 N.Y. Misc. LEXIS 6408).

  • September 28, 2020

    Insurers, Trustees:  No Error In Class Certification Or Settlement Approval

    RICHMOND, Va. — Insurers and trustees in separate Sept. 25 appellees briefs tell the Fourth Circuit U.S. Court of Appeals that despite a single objection, class certification and settlement approval was properly granted in a case over 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.).

  • September 28, 2020

    Executive's Bond Is Reduced Pending Appeal Over New Trial For Alleged Securities Fraud

    BROOKLYN, N.Y. — In a Sept. 23 docket entry, a New York federal judge reduced a former Platinum Partners executive's bond and removed domestic travel restrictions against him as the government appeals the judge's decision to grant a new trial over allegations of securities fraud in schemes to transfer Platinum Partners' assets to a reinsurance company and related entities to defraud bondholders in an oil and gas company (United States v. Mark Nordlicht, 16-cr-640, E.D. N.Y.).

  • September 23, 2020

    Judge Stays Coverage Dispute Over $844M Plane Crash Judgment

    MIAMI — A federal judge in Florida on Sept. 22 stayed a dispute between an English reinsurer and claimants to a $844 million default judgment in connection with a plane crash near Medellin, Colombia, pending the claimants' upcoming motion to remand (Priscila Elen De Souza Lima, et al. v. Linea Aerea Merida Internacional De Aviacion, et al., No. 20-23631, S.D. Fla.).

  • September 21, 2020

    Indemnification Counterclaim Should Be Dismissed, Hedge Funds Liquidators Assert

    NEW YORK — The liquidators for two hedge funds respond in a Sept. 17 answer that a New York federal court should dismiss an indemnification counterclaim brought by a former member of Platinum Management (NY) LLC in the liquidators' dispute over the collapse of the funds as a result of a number of schemes (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.).

  • September 21, 2020

    Health Insurer Opposes Discovery Request In Suit Over $73.21M Verdict

    WILMINGTON, Del. — Noting its reasonable attempts to limit the scope of personal jurisdiction discovery, a health care umbrella insurer asks a Delaware trial court in a Sept. 16 response to deny discovery requests over its reinsurance segment in a coverage dispute regarding a $73.21 million verdict in an underlying medical malpractice lawsuit (Steadfast Insurance Company v. Community Health Systems, Inc., et al., No. N18C-11-127, Del. Super., New Castle Co.).

  • September 18, 2020

    Judge Dismisses Suit Against JPMorgan Over Reinsurance Investment

    CHICAGO — An Illinois federal judge on Sept. 16 dismissed a negligent misrepresentation and breach of fiduciary duty suit against JPMorgan Chase Bank N.A. and its related entities because clients of the bank failed to show how JPMorgan negligently failed to disclose that a reinsurance business "did not believe it would be profitable early on" (Green Dolphin Capital LLC, et al. v. JPMorgan Chase Bank, N.A., et al., No. 19-6940, N.D. Ill., 2020 U.S. Dist. LEXIS 169822).

  • September 17, 2020

    No Response To Farmer's U.S. High Court Petition Over Crop Insurer's Arbitration Award

    WASHINGTON, D.C. — A federally reinsured crop insurer on July 20 waived any response to a farmer's petition for a writ of certiorari to the U.S. Supreme Court asking whether a "good farming practices" dispute can be resolved in private arbitration or must proceed through an administrative review process as provided for under the Federal Crop Insurance Act (FCIA) (Terry R. Balvin v. Rain and Hail LLC, No. 20-3, U.S. Sup., 2020 U.S. S. CT. BRIEFS LEXIS 2601).

  • September 17, 2020

    Final Judgment Denied In Excess Insurer's Case With Reinsurer, Municipality Insurer

    LOS ANGELES — Noting that an appeal of a prior ruling may still occur, a California federal judge on Sept. 4 denied a final judgment ruling in an excess insurer's coverage dispute with a joint powers authority for municipalities and a reinsurer over a $16.8 million settlement of an accident between two California cities' fire departments (StarStone National Insurance Company v. Independent Cities Risk Management Authority, et al., No. 19-1130, C.D. Calif.).

  • September 16, 2020

    No Meaningful Objection To Stay Of Discovery In Kickback Scheme Suit, Insurers Say

    NEW HAVEN, Conn. — Insurers and a mortgage lender argue in a Sept. 1 reply brief that a homeowner does not meaningfully address their request for a stay of discovery but rather rehashes arguments over the filed-rate doctrine in their pending motions to dismiss the homeowner's Connecticut federal court lawsuit alleging a kickback scheme over force-placed insurance (FPI) (Robert R. Lewis v. M&T Bank Corp., et al., No. 20-552, D. Conn.).

  • September 16, 2020

    Insurer Asked To Respond To Discovery In Coverage Suit Over $73.21M Verdict

    WILMINGTON, Del. — The operator of general acute care hospitals and its related entities on Sept. 15 ask the Delaware Superior Court to order a health care umbrella insurer to respond to discovery requests over its reinsurance segment in a coverage dispute regarding a $73.21 million verdict against one of the operator's entities in an underlying medical malpractice suit (Steadfast Insurance Company v. Community Health Systems, Inc., et al., No. N18C-11-127, Del. Super.).

  • September 16, 2020

    Insurer Awarded $1.2M Prejudgment Interest In Dispute With Reinsurer

    NEW YORK — A federal judge in New York on Sept. 15 awarded $1,250,597.81 in prejudgment interest to an umbrella insurer following a previous ruling that an English reinsurer is responsible for $7,234,125 of the umbrella insurer's environmental claims settlement over a Dole Food Co. subsidiary's California housing development (The Insurance Company of the State of Pennsylvania v. Equitas Insurance Limited, No. 17-6850, S.D. N.Y.).

  • September 14, 2020

    Reinsurer Seeks Dismissal Of Insurance Agent's Suit Over Future Demands On Premiums

    FORT WORTH, Texas — A Cayman Islands reinsurer in a Sept. 11 motion seeks dismissal of an insurance agent's preemptive declaratory judgment suit in a Texas federal court for breach of a quota share reinsurance agreement because the agent does not allege an "actual controversy" over the reinsurer's potential future demands for the return of any premiums (Contractor Managing General Insurance Agency, Inc. v. Greenlight Reinsurance, Ltd., No. 20- 996, N.D. Texas).

  • September 14, 2020

    Insurers Respond To Reinsurers' Breach Of Contract Counterclaims

    LOS ANGELES — Insurers on Sept. 10 asserted affirmative defenses to a reinsurer's breach of contract and declaratory relief counterclaims seeking damages of $11.5 million plus prejudgment interest from the insurers in their California federal court dispute over denied reinsurance payments for livery claims, trucking claims and habitability claims (California Capital Insurance Co., et al. v. Maiden Reinsurance North America, Inc., No. 20-1264, C.D. Calif.).

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