Mealey's Reinsurance

  • June 18, 2019

    Insured Claims Financial Conflict Of Interest In Denial Of ERISA Benefits

    BOSTON — An insured alleges in a June 14 complaint filed in a Massachusetts federal court that two insurers who are parties to an administration agreement and a reinsurance agreement engaged in a financial conflict of interest with regard to the denial of his long-term disability benefits under the Employee Retirement Income Security Act (Gary D. Powers v. Northwestern Mutual Life Insurance Co., et al., No. 19-11335, D. Mass.).

  • June 18, 2019

    Liquidator: Panel’s Attorney Fees Award To Reinsurer Exceeded Authority

    CHICAGO — An insolvent insurer’s liquidator argues in a June 7 reply filed in Illinois federal court that a panel exceeded its authority when it issued attorney fees in its $437,000 arbitration award to a reinsurer (Catalina Holdings [Bermuda] Ltd. v. Jennifer Hammer, No. 18-5642, N.D. Ill.).

  • June 18, 2019

    Reinsurer Asks Federal Judge To Disburse $958,017 Of Registry Funds

    SAN DIEGO — A reinsurer in a June 14 motion requests that a California federal judge in accordance with a turnover order disburse $958,017.66 of registry funds to it in a fraudulent transfer dispute concerning a $3.2 million judgment (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al., No. 16-3038, S.D. Calif.).

  • June 17, 2019

    Insurer Asks Court Not To Dismiss Reinsurance Billings Case Over Molestation Claims

    BOSTON — Stating that a confirmation proceeding was not a “prior pending action,” an insurer in a June 13 brief opposes a request to dismiss a Massachusetts federal court case seeking to compel arbitration of a dispute over outstanding reinsurance billings for sexual molestation (Century Indemnity Co. v. Certain Underwriters at Lloyd’s London, No. 19-11056, D. Mass.).

  • June 13, 2019

    Fund Accuses Insurer Of Tortious Interference With Reorganization Scheme

    NEW YORK — In a first amended complaint filed June 10 in a New York federal court, a hedge fund accuses an insurer of tortiously interfering with the fund’s contractual rights regarding notes purchased from a reinsurer by initiating reorganization proceedings under Irish law (ESM Fund I, L.P. v. Ambac Assurance UK Ltd., No. 19-5066, S.D. N.Y.).

  • June 13, 2019

    Judge Stays SEC’s Case Over Schemes To Defraud Insurers, Reinsurance Trusts

    NEW YORK — A New York federal judge on June 10 stayed a lawsuit by the Securities and Exchange Commission that alleges that two individuals “perpetrated multiple schemes to defraud their advisory clients, which were insurance companies and reinsurance trusts” (Securities and Exchange Commission v. Alexander C. Burns, et al., No. 18-09477, S.D. N.Y.).

  • June 12, 2019

    Public Entities Oppose Reinsurer’s Request To Arbitrate Contract Dispute

    SEATTLE — Citing a reinsurer’s failure to find any reinsurance exemption to Washington’s anti-arbitration regulation, an association of state public entities argues against the reinsurer’s request for arbitration of their breach of contract dispute regarding settlement of a lawsuit over police officers’ alleged excessive force in a June 10 brief in a Washington federal court (Washington Cities Insurance Authority v. Ironshore Indemnity Inc., No. 19-00054, W.D. Wash.).

  • June 12, 2019

    Reinsurer, Affiliates Seek Dismissal Of Counterclaims In Workers’ Comp Dispute

    OMAHA, Neb. — A reinsurer and its affiliates moved to dismiss counterclaims on June 7 in their breach of contract dispute over a workers’ compensation program, telling a Nebraska federal court that the counterclaims “are a hodgepodge of conclusory allegations and unsupported assertions that fail to meet basic pleading standards” (Applied Underwriters Captive Risk Assurance Company Inc. v. Ramesh Pitamber & Kusum Pitamber, et al., No. 17-61, D. Neb.).

  • June 11, 2019

    Liquidators File Breach Of Fiduciary Duty Case Over Reinsurance Transactions

    WILMINGTON, Del. — Two limited liability companies and liquidators for one of the companies filed a 101-page complaint in a Delaware state court on June 7, alleging breach of fiduciary duty with regard to transactions involving reinsurance agreements (Principal Growth Strategies LLC, et al. v. AGH Parent LLC, et al., No. 2019-0431, Del. Chan.).

  • June 07, 2019

    Insurer: Dispute Does Not Concern Reinsurance Agreement Interpretation

    RIVERSIDE, Calif. — Because its breach of contract dispute concerns whether coverage exists for $8.6 million in equipment breakdown claims and does not concern the interpretation of a reinsurance agreement, an insurer argues on June 5 that a California federal court should deny a reinsurer’s request to arbitrate or dismiss (Nationwide Agribusiness Insurance Co. v. The Hartford Steam Boiler Inspection and Insurance Co., No. 19-00531, C.D. Calif.).

  • June 07, 2019

    Judge Issues Schedule Order, Discovery Plan For Insurer’s Breach Of Contract Case

    DETROIT — A Michigan federal judge on June 4 issued a modified schedule order and joint discovery plan in an insurer’s breach of contract dispute against a reinsurer over reinsurance billings for underlying asbestos claims (Amerisure Mutual Insurance Co. v. Transatlantic Reinsurance Co., No. 18-11966, E.D. Mich.).

  • June 06, 2019

    Investor, Pension Trust Argue In Favor Of Being Named Lead Plaintiff

    CAMDEN, N.J. — In separate reply briefs filed May 13, an institutional investor and a pension trust each argue to a New Jersey federal court that they have the largest financial interest to serve as lead plaintiff in securities class actions against a reinsurer and former officers over allegations of misrepresentation in underwriting and risk management techniques and a reinsurance portfolio’s risk (Michael Wigglesworth v. Maiden Holdings Ltd., et al., No. 19-05296, D. N.J.).

  • June 06, 2019

    Third-Party Action Over Reinsurance Proceeds Voluntarily Dismissed

    NEW YORK — A reinsurer and the liquidator for Home Insurance Co. informed a New York federal judge on May 30 that they voluntarily dismiss a third-party action following the dismissal of the main action over proceeds allegedly owed to the insolvent insurer under three facultative reinsurance certificates (Roger A. Sevigny v. Trygvesta Forsikring A/S, Trygvesta Forsikring A/S v. Cerberus Holding Company LLC, No. 16-4874, S.D. N.Y.).

  • June 05, 2019

    Panel Reverses Order Over Reinsurance Facility’s Denial Of Reimbursement

    RALEIGH, N.C. — A panel of the North Carolina Court of Appeals on June 4 reversed a lower court’s order, which upheld the state’s insurance commissioner’s order reversing the North Carolina reinsurance facility’s denial of reimbursement to a motor vehicle insurer for an $11 million bad faith settlement and remanded to the commissioner (The North Carolina Reinsurance Facility v. Mike Causey, et al., No. COA 18-1303, N.C. App., 2019 N.C. App. LEXIS 495).

  • June 04, 2019

    Investment Company Seeks Dismissal Of Liquidators’ Case Over Fraud Scheme

    NEW YORK — Calling the allegations against it the “written equivalent of a Russian nesting doll,” an investment holdings company argues in a May 31 reply brief that a New York federal court should dismiss a second amended complaint filed by two hedge funds’ liquidators concerning the alleged massive fraud scheme that caused the hedge funds’ collapse (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • June 03, 2019

    Fund Accuses Insurer Of Interfering With Notes Issued By Reinsurer

    NEW YORK — A fund sued an insurer on May 30 in a New York federal court for tortiously interfering by initiating reorganization proceedings under Irish law with the fund’s contractual rights regarding notes purchased from a reinsurer (ESM Fund I, L.P. v. Ambac Assurance UK Ltd., No. 19-5066, S.D. N.Y.).

  • June 03, 2019

    Judge Consolidates Breach Of Insurance Policies Cases, Appoints Sole Class Counsel

    NEW YORK — A New York federal judge on May 29 consolidated two lawsuits alleging breach of policies by a life insurer’s unlawful increase of premium costs to recoup costs associated with an acquisition and appointed a law firm as the sole interim class counsel (Derek Fan v. PHL Variable Life Insurance Co., No. 18-01288; Advance Trust & Life Escrow Services, et al. v. PHL Variable Life Insurance Co., No. 18-3444, S.D. N.Y., 2019 U.S. Dist. LEXIS 89896).

  • May 31, 2019

    Liquidators:  Investment Company Should Not Be Able To Evade Liability

    NEW YORK — In response to a motion to dismiss a second amended complaint (SAC), two hedge funds’ liquidators argue in a May 29 brief to a New York federal court that an investment holdings company should not be permitted “to evade responsibility for the substantial assistance it provided” in an alleged massive fraud scheme that caused the hedge funds’ collapse (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • May 31, 2019

    Judge:  Parties Agree To Dismissal Of $3.85M Reinsurance Dispute

    NEW YORK — A New York federal judge on May 28 signed a stipulation of voluntary dismissal from an insurer and a reinsurer concerning their $3.85 million reinsurance dispute involving underlying workers’ compensation losses (In re arbitration between National Union Fire Insurance Company of Pittsburgh, PA v. Federal Insurance Co., No. 16-8821, S.D. N.Y.).

  • May 31, 2019

    Insurer:  Arbitration Clause Is Vague, Ambiguous In Dispute With Reinsurers

    SAN JUAN, Puerto Rico — In a Puerto Rico federal court dispute against reinsurers regarding hurricane losses, an insurer argues in its May 28 surreply that the text of an arbitration clause is vague and ambiguous regardless of whether the insurer has filed arbitration proceedings (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).

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