Mealey's Reinsurance

  • November 20, 2019

    Judge Upholds $1.4M Arbitration Award Against Crop Insurer

    ST. JOSEPH, Mo. — A federal judge in Missouri on Nov. 19 affirmed a $1.4 million arbitration award in favor of a farmer because the farmer was entitled to indemnity from a federally reinsured crop insurer for corn crop losses sustained in 2013 (Great American Insurance Co. v. Jonathan Russell, No. 16-9001, W.D. Mo., 2019 U.S. Dist. LEXIS 200211).

  • November 19, 2019

    Bank, Finance Company Seek Dismissal Of Runoff Insurer’s Aiding, Abetting Claims

    NEW YORK — An investment bank and a financial services company argue in a Nov. 18 reply brief to a New York federal court that despite 18 months and the benefit of discovery, a runoff insurer fails to allege that two valuation reports prepared by them “substantially assisted” an alleged fraud or caused damage to the runoff insurer in the investment of $320 million in a failed Ponzi scheme (In re Platinum-Beechwood Litigation, No. 18-6658, Senior Health Insurance Company of Pennsylvania v. Lincoln International LLC, et al., No. 19-07137, S.D. N.Y.).

  • November 18, 2019

    Insurer Asks New York Federal Court For More Settlement Talks With Reinsurer

    NEW YORK — Following an earlier ruling dismissing a reinsurer’s counterclaims concerning termination and rescission of a reinsurance agreement, an insurer in a Nov. 14 letter writes to a New York federal judge proposing that settlement discussions continue with the reinsurer (AmTrust North America Inc. v. Signify Insurance Ltd., et al., No 18-3779, S.D. N.Y.).

  • November 18, 2019

    Insurer Asks New York Federal Court For More Settlement Talks With Reinsurer

    NEW YORK — Following an earlier ruling dismissing a reinsurer’s counterclaims concerning termination and rescission of a reinsurance agreement, an insurer in a Nov. 14 letter writes to a New York federal judge proposing that settlement discussions continue with the reinsurer (AmTrust North America Inc. v. Signify Insurance Ltd., et al., No 18-3779, S.D. N.Y.).

  • November 15, 2019

    Former Employee Says No Violation Of Crop Insurer’s Preliminary Injunction Order

    OMAHA, Neb. — A former employee argues in a Nov. 12 opposition brief that a Nebraska federal court should deny a federally reinsured crop insurer’s request for an order of civil contempt because the former employee says she has not violated the court’s preliminary injunction order (Farm Credit Services of America FLCA v. Kathy Mens, No. 19-14, D. Neb.).

  • November 15, 2019

    Judge Denies Stay Pending Insurer’s Appeal Of Jurisdiction Decision For Arbitration Panel

    NEW YORK — A federal judge in New York on Nov. 14 refused to stay pending an insurer’s recent appeal of his decision granting reinsurers’ declaratory relief in a dispute over which of two arbitrations has jurisdiction to decide reinsurance billings for asbestos losses because the insurer “failed to make the requisite strong showing of likelihood of success on the merits” (Chicago Insurance Co. v. General Reinsurance Corp., et al., No. 18-10450, S.D. N.Y.).

  • November 14, 2019

    Judge Denies Severance Of Runoff Insurer’s Claims In 2 Separate Lawsuits

    NEW YORK — A federal judge in New York on Nov. 12 declined to sever claims made by a runoff insurer against a defendant in two separate lawsuits arising out of allegations of a hedge fund scheme and the misuse and mismanagement of $320 million (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936; Melanie L. Cyganowski, et al. v. Beechwood Re Ltd., et al., No. 18-12018, S.D. N.Y.).

  • November 13, 2019

    Reinsurer, Insolvent Insurer Seek Waiver Of Compliance Regarding $5M In Funds

    AUSTIN, Texas — A reinsurer and an insolvent insurer, as debtors, ask a Texas federal bankruptcy court in a Nov. 12 brief to waive compliance requirements for $5 million in proceeds from a life insurance policy with the account where the proceeds are currently being held (In re:  Capson Corp., et al., Nos. 19-10890, 19-10893 & 19-10894, W.D. Texas Bkcy.).

  • November 13, 2019

    Insurer, Reinsurer’s Breach Of Contract Case Receives 3rd Schedule Modification

    DETROIT — In a breach of contract dispute between an insurer and its reinsurer over reinsurance billings for underlying asbestos claims, a federal judge in Michigan on Nov. 1 issued a third stipulated order modifying the schedule order and joint discovery plan (Amerisure Mutual Insurance Co. v. Transatlantic Reinsurance Co., No. 18-11966, E.D. Mich.).

  • November 13, 2019

    Trial Court Lacked Jurisdiction Over Reinsurer’s Case For Recovery Of $4.8M, Panel Says

    LINCOLN, Neb. — The Nebraska Court of Appeals on Nov. 12 upheld the dismissal of a reinsurer’s lawsuit seeking $4.8 million owed under a reinsurance participation agreement (RPA) because a trial court lacked personal jurisdiction (Applied Underwriters Captive Risk Assurance Company, Inc. v. Sky Materials Corp., No. A-19-308, Neb. App., 2019 Neb. App. LEXIS 343).

  • November 12, 2019

    Insurers Tell Court Of More Dismissals Of Third-Party RICO, Fraud Claims

    NEW YORK — In a dispute arising out of a receiver’s lawsuit seeking redress for damages from of a “massive fraudulent scheme” involving hedge funds, insurers on Nov. 8 inform a New York federal court that they voluntarily dismiss claims against a third-party defendant for fraudulent inducement and violations of the Racketeer Influenced and Corrupt Organizations Act after previously doing so for other defendants (In re Platinum-Beechwood Litigation, No. 18-6658, Washington National Insurance Co., et al. v. Mark Nordlicht, et al., No. 18-12018, S.D. N.Y.).

  • November 12, 2019

    Reinsurers: Liquidator Bound By Arbitration Clauses In $150M Hurricane Loss Case

    SAN JUAN, Puerto Rico — Reinsurers on Nov. 8 joined an opposition brief arguing to a Puerto Rico federal court that an insurer’s liquidator can be bound to arbitration clauses in the insurer’s reinsurance agreements in a dispute over $150 million in losses from two hurricanes (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).

  • November 12, 2019

    Bermuda Reinsurer Seeks Dismissal Of ERISA Case For Lack Of Jurisdiction

    WASHINGTON, D.C. — A Bermuda reinsurer in a Nov. 7 motion asks a District of Columbia federal court to dismiss for lack of personal jurisdiction a lawsuit filed by trustees of the United Mine Workers of America (UMWA) pension plan over alleged violations of the Employee Retirement Income Security Act from failing to make $934 million in withdrawal liability payments (Michael H. Holland, et al. v. Cardem Insurance Company Ltd., No. 19-02362, D. D.C.).

  • November 11, 2019

    Magistrate Judge Declines To Compel Reinsurers To Produce Info Over Settlement Allocation

    BOSTON — A Massachusetts federal magistrate judge on Nov 8 denied an insurer’s motion to compel production of documents from reinsurers over allocation and billing of a 2009 settlement with an insured because “the relevance of the materials sought is too speculative” (Certain London Market Company Reinsurers v. Lamorak Insurance Co., No. 18-10534, D. Mass.).

  • November 11, 2019

    Judge Denies Reconsideration Over Appeal Ruling In Case Involving Insolvent Insurer

    SAN JUAN, Puerto Rico — A federal judge in Puerto Rico in a Nov. 6 docket entry denied, without explanation, a request by the Puerto Rico insurance commissioner and deputy commissioners to reconsider an order certifying their appeal as “frivolous” in a lawsuit alleging civil conspiracy to deprive constitutional rights to an insolvent insurer’s owners (Victor J. Salgado and Associates Inc., et al. v. Javier Rivera-Rios, et al., No. 19-1663, D. Puerto Rico).

  • November 08, 2019

    Error In Dismissal Of RICO Claim In Alleged Reinsurance Scheme, Investor Asserts

    DENVER — An investor argues in a Nov. 6 opening brief with the 10th Circuit U.S. Court of Appeals that he has a valid claim under Racketeer Influenced and Corrupt Organizations Act with regard to his dispute over an alleged reinsurance scheme and that the lower court erred in finding that the claim is reverse-preempted under the McCarran-Ferguson Act (Albert Ogles v. Guggenheim Investments, et al., No. 19-3154, 10th Cir.).

  • November 07, 2019

    Irish Reinsurer Seeks Closure Of Chapter 15 Case Having Completed Restructuring

    NEW YORK — Having completed restructuring steps, the foreign representative for an Irish reinsurer in a Nov. 5 notice seeks an order from a New York federal bankruptcy court closing the bankruptcy proceeding that recognized 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.).

  • November 07, 2019

    Runoff Insurer Dismisses Defendant From Third-Party Aiding, Abetting Claims

    NEW YORK — A runoff insurer on Nov. 4 voluntarily dismissed a third-party defendant from allegations of aiding and abetting a Ponzi-like scheme in which fraudulent misrepresentations were made to gain investment control and discretion over $320 million of the runoff insurer’s reserves (In re Platinum-Beechwood litigation, No. 18-6658; Senior Health Insurance Company of Pennsylvania v. PB Investment Holdings Ltd., et al., No. 18-12018, S.D. N.Y.).

  • November 05, 2019

    Insurer Appeals Ruling On Arbitration Panel’s Jurisdiction Over New Reinsurance Billings

    NEW YORK — An insurer on Oct. 31 filed a notice of appeal in the Second Circuit U.S. Court of Appeals of a New York federal judge’s decision to stay the insurer’s new arbitration of reinsurance billings for asbestos losses because a prior arbitration panel retained jurisdiction to decide the matter (Chicago Insurance Co. v. General Reinsurance Corp., et al., No. 18-10450, S.D. N.Y.).

  • November 05, 2019

    No Evidence Exists For New Trial On $6.25M Judgment Against Reinsurer, Insurer Says

    UTICA, N.Y. — An insurer argues in a Nov. 1 opposition brief to a New York federal court that a reinsurer failed to show a “complete absence of evidence” for a $6.25 million jury verdict in a dispute concerning two separate reinsurance certificates and coverage for settlements of asbestos claims (Utica Mutual Insurance Co. v. Century Indemnity Co., No. 13-995, N.D. N.Y.).