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Mealey's Reinsurance

  • May 23, 2019

    Former Managing Director Answers Third-Party Complaint Over Fraudulent Scheme

    NEW YORK — A former managing director for investment companies on May 20 responded to insurers’ third-party allegations of fraudulent inducement and fraud and violations of the Racketeer Influenced and Corrupt Organizations Act in a receiver’s New York federal court lawsuit, seeking redress for damages arising out of a “massive fraudulent scheme” involving Platinum Partners Credit Opportunities Master Fund LP (PPCO funds) (Melanie L. Cyganowski, as equity receiver for Platinum Partners Credit Opportunities Master Fund LP, et al. v. Beechwood Re Ltd., et al. & Washington National Insurance Co., et al. v. Moshe M. Feuer, et al., No. 18-12018, S.D. N.Y.).

  • May 23, 2019

    9th Circuit Dismisses Appeal Over Directing Of Funds To Reinsurer

    SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on May 21 dismissed an appeal in a case over a $3.2 million judgment with regard to a lower court’s order directing $958,017.66 in funds in the court registry to an reinsurer as judgment creditor (Odyssey Reinsurance Co. v. Richard Keith Nagby, et al., No. 19-55423, 9th Cir., 2019 U.S. App. LEXIS 15060).

  • May 22, 2019

    Reinsurer: Arbitration Clause Is Unambiguous, Enforceable Over Hurricane Loss Dispute

    SAN JUAN, Puerto Rico — In its May 20 reply brief, a reinsurer argues to a Puerto Rico federal court that an insurer’s dispute regarding hurricane losses should be dismissed based upon a reinsurance agreement’s unambiguous and enforceable arbitration clause (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).

  • May 22, 2019

    Reinsurer Seeks Specific Performance, Asserts Breach Of Contract Claim

    NEW YORK — In a May 17 complaint, a reinsurer seeks an order of specific performance under reinsurance and retrocession agreements from a New York federal court with regard to the release of excess assets in an operating account and, alternatively, asserts breach of contract (TAKATA Reinsurance Inc. v. AIU Insurance Company Ltd., No. 19-04586, S.D. N.Y.).

  • May 22, 2019

    Insurer Dismisses Case Against Reinsurers Over Asbestos Claims Liability

    SAN FRANCISCO — An insurer on May 20 notified a California federal court of its voluntary dismissal of a case against reinsurers for failing to pay amounts under facultative reinsurance contracts in connection with liability to asbestos personal injury claims (Insurance Company of the State of Pennsylvania v. Transport Insurance Co., et al., No. 19-01532 N.D. Calif.).

  • May 21, 2019

    Reinsurer Seeks Recognition Of Liquidation Proceeding In Federal Bankruptcy Court

    NEW YORK — A reinsurance company in a May 16 petition asks a New York federal bankruptcy court to recognize its liquidation proceedings pending in a Cayman Islands court and to place a stay on several securities fraud cases in which it is being accused of operating as an alter ego of a hedge fund (In re Beechwood Re, Chapter 15, No. 19-11560, S.D. N.Y. Bkcy.).

  • May 20, 2019

    Reinsurer: Right To Arbitrate Was Waived In Breach Of Contract Case

    OMAHA, Neb. — In a breach of contract dispute, a reinsurer and its subsidiaries, which are part of workers’ compensation program involving a reinsurance participation agreement (RPA), argue in a May 15 filing in Nebraska federal court that investment companies waived their right to arbitrate claims and that the reinsurer and subsidiaries have no duty to arbitrate (Applied Underwriters Captive Risk Assurance Company Inc. v. Ramesh Pitamber & Kusum Pitamber, et al., No. 17-61, D. Neb.).

  • May 17, 2019

    Reinsurer Seeks Arbitration, Dismissal Or Stay Of Insurer’s Breach Of Contract Case

    RIVERSIDE, Calif. — A reinsurer in a May 15 motion asks a California federal court to order arbitration, dismissal or a stay of an insurer’s breach of contract dispute concerning reimbursement of $8.6 million for payment of equipment breakdown claims (Nationwide Agribusiness Insurance Co. v. The Hartford Steam Boiler Inspection and Insurance Co., No. 19-00531, C.D. Calif.).

  • May 17, 2019

    Reinsurer: No Merit To Arguments Opposing Stay Of Arbitration Pending Appeal

    HARRISBURG, Pa. — In a May 14 reply in support of a stay to arbitration over lead paint losses pending an appeal, a reinsurer argues to a Pennsylvania federal judge that an insurer’s irreparable harm and public interest arguments have no merit (Pennsylvania National Mutual Casualty Insurance Co. v. Everest Reinsurance Co., No. 18-mc-653 c/w No. 18-mc-656, M.D. Pa.).

  • May 16, 2019

    Irish Reinsurer Seeks Chapter 15 Relief In Bankruptcy Court

    NEW YORK — An Irish reinsurer of life insurance policies on May 7 sought to have a New York federal bankruptcy court recognize a foreign main liquidation proceeding concerning an alleged $1 billion deficit (In re Ballantyne Re Plc, Chapter 15, No. 19-11490, S.D. N.Y. Bkcy.).

  • May 16, 2019

    Investor, Pension Trust Oppose Consolidation Of Securities Class Actions

    CAMDEN, N.J. — In separate May 6 opposition briefs, an institutional investor and a pension trust argue that a New Jersey federal court should deny requests to consolidate related securities class actions against a reinsurer and former executive officers regarding 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.).

  • May 16, 2019

    Reinsurer: Court Erred In Decision To Remand Denial Of Reimbursement Claim

    RALEIGH, N.C. — A North Carolina reinsurance facility argues in a March 26 brief to the state’s appellate court that a trial court erred in remanding its denial of reimbursement to a motor vehicle insurer for an $11 million bad faith settlement because the insurer’s “short-lived, ill-advised 1-800 claims reporting procedure directly created the conditions for that bad faith judgment” (The North Carolina Reinsurance Facility v. Mike Causey, et al., No. COA 18-1303, N.C. App.).

  • May 15, 2019

    Reinsurance Agreement’s Arbitration Clause Is ‘Vague,’ ‘Ambiguous,’ Insurer Says

    SAN JUAN, Puerto Rico — An insurer argues in a May 10 motion in a Puerto Rico federal court that a reinsurer’s motion to dismiss its dispute regarding hurricane losses should be denied because the reinsurance agreement’s arbitration clause “is vague and ambiguous” (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).

  • May 15, 2019

    Judge: Run-Off Insurer Owes No Indemnification For Advancement Of Expenses

    NEW YORK — In a run-off insurer’s case over misuse allegations of $320 million with affiliates of a failed Ponzi scheme, a New York federal judge on May 13 denied summary judgment to the affiliates on their counterclaim for advancement of expenses incurred in connection with this lawsuit because investment management agreements (IMAs) do not indemnify expenses incurred in this lawsuit (In re:  Platinum-Beechwood Litigation; Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-6658, and David Levy v. Senior Health Insurance Company of Pennsylvania, No. 19-3211, S.D. N.Y., 2019 U.S. Dist. LEXIS 81271).

  • May 14, 2019

    Defendant Seeks Dismissal Of Hedge Funds’ Liquidators’ 2nd Amended Complaint

    NEW YORK — A defendant argues in a May 10 motion that a New York federal court should dismiss two hedge funds’ liquidators’ second amended complaint (SAC) with regard to allegations in connection “with one of the most spectacular hedge fund collapses” (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • May 14, 2019

    Federal Agencies Do Not Oppose Class Certification In Case Against Crop Insurers

    DETROIT — Federal agencies that reinsure crop insurers say in a May 13 motion that they do not oppose the certification of a class in a Michigan federal lawsuit filed by a putative class of farmers against the crop insurers and the federal agencies but that the farmers’ motion includes requests for class relief, which the federal agencies argue are premature (Gregory Ackerman, et al. v. U.S. Department of Agriculture, et al., No. 17-11779, E.D. Mich.).

  • May 14, 2019

    Reinsurers: No Exclusive Jurisdiction Exists To Hear Breach Of Contract Case

    CONCORD, N.H. — Reinsurers argue in a May 10 reply brief that a New Hampshire federal court does not have exclusive jurisdiction under the Foreign Sovereign Immunities Act (FSIA) to decide a breach of contract dispute over $22 million in outstanding reinsurance billings (United States Fire Insurance Co., et al. v. Equitas Insurance Ltd., et al., No. 18-01205, D. N.H.).

  • May 14, 2019

    Iowa High Court: Bad Faith Claim Not Available Against Insurer’s Claims Administrator

    DES MOINES, Iowa — Under Iowa law, a majority of the state’s high court on May 10 ruled that a common-law cause of action for bad faith failure to pay workers’ compensation benefits is not available against a workers’ compensation insurer’s third-party claims administrator (Samuel De Dios v. Indemnity Insurance Company of North America, et al., No. 18-1227, Iowa Sup., 2019 Iowa Sup. LEXIS 56).

  • May 7, 2019

    Insurer Seeks To Compel Arbitration Of Dispute Over Reinsurance Billings

    BOSTON — An insurer petitioned a Massachusetts federal court on May 6 to compel it and its reinsurer to arbitrate their dispute regarding outstanding reinsurance billings (Century Indemnity Co. v. Certain Underwriters at Lloyd’s London, No. 19-11056, D. Mass.).

  • May 7, 2019

    Insurer’s Liquidator Seeks Vacating, Modification Of Reinsurer’s Arbitration Award

    CHICAGO — An insolvent insurer’s liquidator asked an Illinois federal court on May 3 to vacate or modify a $437,000 attorney fees award in a reinsurer’s case seeking confirmation of that award because the arbitration panel “exceeded their powers” and the award “manifestly disregards the law” (Catalina Holdings (Bermuda) Ltd. v. Jennifer Hammer, No. 18-5642, N.D. Ill.).