Mealey's Reinsurance

  • October 14, 2021

    Objecting Class Members Appeal Attorney Fees Awards In ACA Risk-Corridor Dispute

    WASHINGTON, D.C. — Objecting class members on Oct. 1 appealed the U.S. Court of Federal Claims’ judgments granting attorney fee awards for class counsel of insurers in a lawsuit seeking a declaratory judgment that the U.S. government owes the insurers millions of dollars under the Patient Protection and Affordable Care Act (ACA) risk-corridor program.

  • October 14, 2021

    Insured’s Dismissal Motion Partly Granted In Suit Over Fees, Costs

    NEWARK, N.J. — A federal judge in New Jersey on Oct. 8 partly granted an insured’s motion to dismiss a breach of contract suit over attorney fees and costs, ruling that complete diversity of citizenship was not proved but granting leave to amend; the judge otherwise denied dismissal, rejecting the insured’s arguments based on the policy’s use of the word “(re)insurer.”

  • October 13, 2021

    Reinsurer Tells 2nd Circuit Utica Doesn’t Address Issue In Defense Costs Row

    NEW YORK — A recent Second Circuit U.S. Court of Appeals ruling “does not address the issue to be determined in this case,” reinsurer Global Reinsurance Corporation of America says in an Aug. 6 letter to a panel of the court regarding its appeal in a long-running breach of contract case against insurer Century Indemnity Co. over defense costs for asbestos claims.

  • October 13, 2021

    Government Responds To Authority In Purported Captive Insurer’s Tax Status Challenge

    DENVER — Neither the U.S. Supreme Court in CIC Servs., LLC v. IRS nor a Tennessee federal judge’s recent ruling on remand of that case “‘expressed concern’ that the IRS was overzealously challenging captive insurance arrangements,” the government tells a 10th Circuit U.S. Court of Appeals panel in its Oct. 1 response to a notice of supplemental authority filed by a company challenging a ruling that it is not a tax-exempt insurer.

  • October 13, 2021

    Negligence, UCL Claims Filed Against Marketer In Alleged Reinsurance Scheme

    SAN DIEGO — Individuals who allege that they were sold counterfeited and nonexistent PregnancyCare insurance policies under “supposed captive reinsurance programs” filed a putative class complaint in California federal court on Oct. 11, claiming violation of California’s unfair competition law (UCL), negligent misrepresentation and unjust enrichment.

  • October 13, 2021

    After Order To Show Cause, Counsel Seeks To Withdraw From ERISA, Reinsurance Suit

    SANTA ANA, Calif. — Counsel for third-party administrators on Sept. 23 moved for leave to withdraw from a suit filed by trucking companies that alleges negligent failure to obtain reinsurance coverage for a self-insured employee benefit plan; the motion came after the federal court in California on Sept. 9 issued an order to show cause.

  • October 13, 2021

    Class Suit Involving Indemnity Reinsurance Deal Headed For Jury Trial

    NEW YORK — A life insurance policyholder’s class action breach of contract challenge to a 2016 cost of insurance (COI) increase that came years after an indemnity reinsurance agreement is headed for a jury trial, with a New York federal judge issuing an Aug. 31 order setting it as a backup trial for the week of Dec. 6

  • October 11, 2021

    4th Circuit Sets Argument Over Class Settlement For Alleged Reinsurance Scheme

    RICHMOND, Va. — Eleven months after the last brief was filed in a family trust’s appeal of class certification and settlement approval in a consolidated case over an alleged life insurance fraud scheme that shifted debt to reinsurers, the Fourth Circuit U.S. Court of Appeals on Oct. 8 issued a tentative calendar order setting oral argument for the session running Dec. 6 to 10.

  • October 08, 2021

    Breach Of Contract Suit Filed Against Reinsurers Over Asbestos, Other Claim Bills

    LOS ANGELES — An insurer sued reinsurers over billings for claims related to asbestos and other issues in California state court on Sept. 30, alleging breach of contract and seeking declaratory relief; the insurer also moved for an order to seal information related to prior settlement agreements.

  • October 08, 2021

    Trial Set In Mortgagors’ Anti-Kickback Suit Against Insurers, Captive Reinsurer

    FRESNO — A jury trial on allegations by a class of mortgagors that private mortgage insurers and a captive reinsurer violated anti-kickback provisions of the Real Estate Settlement Procedures Act (RESPA) will commence Feb. 15, according to an Oct. 5 notice in the case before a federal court in California.

  • October 06, 2021

    Judge Dismisses California Authority’s Tortious Bad Faith Claims Against Reinsurers

    SACRAMENTO, Calif. — A California joint power authority’s allegations against reinsurers lack factors that the California Supreme Court has relied on to extend tort recovery in the insurance context, a federal judge in California ruled Sept. 27, dismissing claims for tortious breach of the implied covenant of good faith and striking the authority’s prayers for punitive damages and attorney fees from the breach of contract complaint.

  • October 06, 2021

    Amending Complaint After Discovery Fought In Reinsurance Breach Of Contract Suit

    DETROIT — Allowing a second amended complaint after discovery in a dispute over billings for asbestos claims would be untimely and prejudicial and “would fundamentally change the nature and scope of this case,” a reinsurer argues in a Sept. 28 brief filed in a federal court in Michigan; in its Oct. 5 reply, the insurer contends that the request is proper because it has “consistently asserted ad damnum demands for fees” and seeks to conform its pleading to orally discovered facts.

  • October 04, 2021

    Dismiss 2 Of 5 Counts In Railroad’s Injunctive Relief Suit, Magistrate Recommends

    SPRINGFIELD, Ill. — A railroad company’s claim for a declaration of no liability does not allege a case or controversy, and its bid for a declaratory judgment that res judicata bars reinsurer Illinois Mine Subsidence Insurance Fund (IMSIF) from bringing any more mine subsidence claim actions against it fails to state a claim, a federal magistrate judge in Illinois said in a report filed Sept. 29, recommending that the reinsurer’s motion to dismiss be granted only as to those claims.

  • September 30, 2021

    Texas Code Requires Dismissing Statutory Claims In Reinsurance Row, Judge Rules

    GALVESTON, Texas — A federal judge in Texas on Sept. 29 granted dismissal of a health insurer’s statutory claims against a reinsurer, adopting in its entirety and without explanation a federal magistrate judge’s memorandum and recommendation that concluded that part of the Texas Insurance Code “broadly prohibits extracontractual claims against a reinsurer.”

  • September 29, 2021

    United States Asserts False Claims Act, FIRREA Violations In Crop Reinsurance Suit

    YAKIMA, Wash. — A farmer and his company fraudulently obtained hundreds of thousands of dollars in crop insurance indemnity payments reinsured by the Federal Crop Insurance Corp. (FCIC) by falsely claiming losses to wheat crops, the government alleges in a complaint filed Sept. 28 in a federal court in Washington under the Financial Institutions Reform and Recovery Enforcement Act (FIRREA) and the False Claims Act.

  • September 29, 2021

    Ruling Nonbinding Arbitration Not Subject To FAA, Judge Stays Reinsurance Row

    ORLANDO, Fla. — An agreement to submit to nonbinding arbitration is not subject to the Federal Arbitration Act (FAA) but is “an express condition precedent to filing suit,” a federal judge in Florida ruled Sept. 28, staying a self-insured intergovernmental risk management association’s breach of contract dispute against a reinsurer pending completion of the process.

  • September 29, 2021

    Vice Chancellor Addresses Discovery Dispute In Fraud Suit Against LTC Insurer

    WILMINGTON, Del. — In a Sept. 24 letter to the parties, a Delaware vice chancellor laid out an eight-step process for resolving a motion to compel production of documents in a class action over allegations of a “deliberate, long-term scheme” to “bleed capital” from an insurance subsidiary that more than 1 million policyholders depend on for long-term care (LTC) insurance disability benefits.

  • September 28, 2021

    Purported Captive Insurer Files New Authority In 10th Circuit Tax Status Challenge

    DENVER — The U.S. Supreme Court decision in CIC Servs., LLC v. IRS and a federal judge in Tennessee’s recent ruling on remand of that case support its arguments, a company organized as a captive insurer asserts in a Sept. 27 notice of supplemental authority to a 10th Circuit U.S. Court of Appeals panel in a challenge to a U.S. Tax Court ruling that the company is not a tax-exempt insurer.

  • September 28, 2021

    Fighting Statutory Claims Recommendation, Insurer Cites Context Of Texas Code

    GALVESTON, Texas — Case law and context show that a section of the Texas Insurance Code “is simply a no-direct-action statute” and does not completely bar extracontractual claims against reinsurers, a health insurer argues in Sept. 27 objections to a recommendation by a federal magistrate judge in Texas that its statutory claims against a reinsurer be dismissed.

  • September 28, 2021

    9th Circuit Sets Oral Argument For Row Over Regulators’ Conservatorship Of Insurer

    SAN FRANCISCO — In a Sept. 26 docket entry, the Ninth Circuit U.S. Court of Appeals filed notice of oral argument scheduled for Dec. 7 in a suit alleging that California state regulators abused their authority in obtaining a conservatorship against a workers’ compensation insurance carrier; the appeal followed a federal judge in California’s dismissal of the suit upon determining that the prior exclusive jurisdiction rule and abstention under Younger v. Harris apply.