Mealey's Reinsurance
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August 01, 2023
Summary Judgment On False Claims Act Counts Disputed In Crop Insurance Case
YAKIMA, Wash. — Opposing the government’s bid for summary judgment on counts asserted under the False Claims Act (FCA), a farmer argues in Washington federal court that the crop insurance row “stems from an essential misunderstanding of facts by the Plaintiff and conflation of various entities with” his “personal involvement.”
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July 28, 2023
Summary Judgment Issues In Quota Share Reinsurance Row Include Notice, Prejudice
DALLAS — Parties in a breach suit over a first-dollar quota share reinsurance contract have completed briefing on competing summary judgment motions in Texas federal court, arguing issues including whether the notice provision imposes an objective or subjective standard and whether the reinsurer can show prejudice arising from the allegedly late notice.
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July 27, 2023
Emergency Stay Bid Withdrawn From U.S. Supreme Court In Microcaptive Info Dispute
WASHINGTON, D.C. — Citing an agreement with the United States, the Delaware Department of Insurance (DDOI) on July 26 withdrew an emergency application it filed in the U.S. Supreme Court less than a week earlier in the corporate privacy case involving microcaptive insurance company information.
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July 26, 2023
Delaware Court Enters Liquidation, Injunction Order For Life And Health Reinsurer
WILMINGTON, Del. — A Delaware Chancery Court vice chancellor has granted a receiver’s motion for entry of a liquidation and injunction order pertaining to life and health reinsurer Scottish Re (U.S.) Inc. (SRUS); among other things, the order gives the receiver discretion to “reject any executory contract to which SRUS is a party.”
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July 26, 2023
New Jersey High Court Grants Insurers Leave To Appeal Cyberattack Coverage Dispute
TRENTON, N.J. — The New Jersey Supreme Court granted insurers and reinsurers’ motion for leave to appeal an appeals court’s finding that they failed to demonstrate that a “Hostile/Warlike Action” policy exclusion applied to bar coverage for insureds’ losses arising from a June 2017 malware/cyberattack.
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July 25, 2023
Judge: Reinsurance Wouldn’t Shift Risk Of Loss In Breach Suit Over Surety Bonds
ASHEVILLE, N.C. — Ruling in part that a surety’s “potential reinsurance coverage does not provide a basis for this Court to reconsider the amount of collateral ordered,” a North Carolina federal judge denied a company’s motion seeking reconsideration or suspension of a preliminary injunction that ordered the company to deposit nearly $16 million in collateral.
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July 20, 2023
Judge Opts To Let Factual Record Develop In Estoppel Dispute Over Defense Costs
DETROIT — Denying without prejudice a motion for judgment on the pleadings, a Michigan federal judge on July 19 said parties in the suit over defense costs can “incorporate whatever evidence they believe is pertinent to the collateral estoppel and judicial estoppel arguments” in a summary judgment bid.
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July 20, 2023
Rehab Plan Proposed For Reinsurer Of Wisconsin Town Mutual Insurers
MADISON, Wis. — Following issuance of a rehabilitation order, Wisconsin’s commissioner of Insurance has asked a Wisconsin court to approve a rehabilitation plan for Wisconsin Reinsurance Corp. and its subsidiary 1st Auto & Casualty Insurance Co.
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July 20, 2023
Challenge To Denial Of Stay Enforcement Bid Is Dismissed On Stipulation
NEW YORK — One appeal has been dropped in a sprawling dispute involving the joint provisional liquidators (JPLs) of Bermuda insurer and reinsurer PB Life and Annuity Co. Ltd. (PBLA) and other debtors, with a New York federal judge granting the parties’ stipulation of dismissal with prejudice.
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July 19, 2023
Judge In Securities Fraud Case: Investors’ Losses Not Tied To Defendants’ Actions
BROOKLYN, N.Y. — A New York federal judge on July 18 ruled that investors’ losses “cannot be attributed to defendants’ behavior” in an alleged scheme involving a reinsurer that led to former hedge fund executives’ convictions for securities fraud and conspiracy to commit securities fraud.
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July 19, 2023
3rd Circuit Won’t Stay Mandate In Case Over Delaware Microcaptive Info
PHILADELPHIA — The Third Circuit U.S. Court of Appeals panel that ruled against the Delaware Department of Insurance (DDOI) in a case the panel said “pits Delaware’s authority to protect corporate privacy against the power of the IRS” on July 18 denied DDOI’s motion to stay the mandate pending an intended certiorari petition.
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July 18, 2023
Settlement Notice Filed In Self-Insurance Pool Case Over Reinsurance Agreements
DENVER — With a recommendation on several motions pending, a school district that sued over liability claim settlements has filed notice of unspecified settlement in Colorado federal court.
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July 17, 2023
Receiver Asks Delaware Court to Liquidate Life And Health Reinsurer
WILMINGTON, Del. — As previously signaled, the receiver for Scottish Re (U.S.) Inc. in Rehabilitation (SRUS) on July 14 moved in the Delaware Court of Chancery for entry of a liquidation and injunction order declaring, in part, that the life and health reinsurer “is impaired, insolvent, and in an unsound condition.”
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July 14, 2023
1st Prong Of Takings Analysis Dooms Takings Claim In ACA Reinsurance Row
WASHINGTON, D.C. — In an unsealed ruling filed July 13 in a lawsuit over the Transitional Reinsurance Program (TRP) of the Patient Protection and Affordable Care Act (ACA), a U.S. Court of Federal Claims judge granted the government partial summary judgment based on the first prong of the Federal Circuit’s takings analysis.
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July 14, 2023
Bifurcated Settlement Granted For 1 Defendant In SEC Suit Over Alleged Fraud
DURHAM, N.C. — A North Carolina federal judge has approved a bifurcated settlement that the U.S. Securities and Exchange Commission negotiated with one of three defendants in a civil suit over a former investment advisory firm’s alleged “series of fraudulent and improper schemes” that defrauded clients of more than $75 million.
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July 13, 2023
Under Ciminelli, 2 Are Acquitted Of Convictions For Wire Fraud Conspiracy
BROOKLYN, N.Y. — Citing Ciminelli v. United States, a New York federal judge on July 12 granted a judgment of acquittal on a count of conspiracy to commit wire fraud to two former hedge fund executives who were convicted of that and other crimes in the case regarding an alleged scheme involving a reinsurer; alternatively, he granted the executives a new trial on only that count.
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July 10, 2023
Federal Judge Dismisses Bid To Remove Arbitrator In Reinsurance Row
NEW YORK — Ruling that the court lacks “authority to remove a sitting arbitrator in an arbitration proceeding conducted under Bermuda procedural law, and in any event, the petition fails on the merits,” a New York federal judge granted dismissal of a lawsuit seeking replacement of an arbitrator in a proceeding concerning two reinsurance contracts between Bermuda-based entities.
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July 10, 2023
Parties In Appeal Of Judgment In ACA Reinsurance Row Note Settlement Negotiations
WASHINGTON, D.C. — Parties in an appeal concerning a $185,230,024.42 judgment against the government on July 7 asked the Federal Circuit U.S. Court of Appeals to stay proceedings until Oct. 9, saying they “have entered into settlement negotiations that may resolve this matter” in the litigation over the Transitional Reinsurance Program (TRP) of the Patient Protection and Affordable Care Act (ACA).
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July 10, 2023
Judge Issues Sealed Ruling For Government In Suit Over ACA Reinsurance
WASHINGTON, D.C. — A U.S. Court of Federal Claims judge on July 7 issued a sealed ruling granting the government partial summary judgment in a lawsuit over the Transitional Reinsurance Program (TRP) of the Patient Protection and Affordable Care Act (ACA).
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July 07, 2023
Insurance Commissioner Reports Balance Over $1.4M In Insolvent Insurer’s Fund
ST. THOMAS, Virgin Islands — The Virgin Islands commissioner of insurance filed a court-ordered quarterly accounting and status report with a U.S. Virgin Islands federal court showing that more than $1.4 million remains in a fund set up for payment of claims to an insolvent insurer’s policyholders.
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July 06, 2023
United States Urges 3rd Circuit Not To Stay Mandate In Microcaptive Info Case
PHILADELPHIA — Arguing that there is “no reasonable probability” the U.S. Supreme Court will either agree to review the case or hand down a reversal, the United States urged against staying a Third Circuit U.S. Court of Appeals mandate pending an intended certiorari petition by the Delaware Department of Insurance (DDOI) in a case the Third Circuit panel said “pits Delaware’s authority to protect corporate privacy against the power of the IRS.”
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July 05, 2023
Remand Motion In Lawsuit Over Purported Reinsurance Is Withdrawn
HONOLULU — The plaintiff in a dispute over a purported reinsurance policy has withdrawn its remand motion without prejudice, telling a Hawaii federal court that it made the call after “review of the current evidentiary record,” including the defendant’s opposition to remand and “recently filed exhibits” that “assert and contain facts that were uniquely in Defendant’s control.”
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July 05, 2023
New York Justice Compels Arbitration In Row Over Reinsurance Receivables
NEW YORK — Saying that selecting an arbitrator constitutes participating in arbitration and that a “liquidator case is inapplicable to this action where the Liquidator is not party to the arbitration,” a New York justice compelled arbitration in a dispute over reinsurance receivables.
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July 05, 2023
Case Over Suspension From Crop Reinsurance Is Dismissed On Stipulation
FARGO, N.D. — A North Dakota federal magistrate judge granted a joint stipulation to dismiss without prejudice all claims in an Administrative Procedure Act (APA) lawsuit challenging a Risk Management Agency (RMA) suspension that kept a farmer from participating in a federally reinsured multiperil crop insurance (MCPI) program.
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July 05, 2023
Judgment On Pleadings Disputed In Row Over Sexual Abuse Case Settlements
SEATTLE — Parties in a case over reimbursement for defense and settlement of suits alleging sexual abuse are disputing a motion for judgment on the pleadings, with an interlocal cooperative and a foreign reinsurer arguing issues including whether a pending bid to add allegations renders the motion moot.