Mealey's Reinsurance
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July 03, 2023
Dismissal Bid Is Terminated In Appeal Over Partial Stay Of Adversary Proceeding
NEW YORK — Citing a ruling by a North Carolina court, movants successfully sought termination of their bid to dismiss an appeal in New York federal court that seeks reversal of a bankruptcy judge’s order partially staying an adversary proceeding filed by the joint provisional liquidators (JPLs) of Bermuda insurer and reinsurer PB Life and Annuity Co. Ltd. (PBLA) and other debtors.
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June 28, 2023
Government Moves To Dismiss Suit Over Microcaptive Insurer Reporting Requirements
SALT LAKE CITY — Arguing in part that the challenged 2016 Internal Revenue Service notice imposing reporting requirements concerning microcaptive insurance companies “has been obsoleted,” the government moved in Utah federal court to dismiss a suit seeking injunctive and declaratory relief.
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June 27, 2023
Receiver Updates Delaware Court On Plans To Seek Liquidation Of Reinsurer
WILMINGTON, Del. — The receiver for Scottish Re (U.S.) Inc. in Rehabilitation (SRUS) intends to seek entry of a liquidation and injunction order “on or about July 12,” he told the Delaware Court of Chancery in a successful bid to enlarge the word limit.
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June 27, 2023
Government Appeals $185.2M Judgment, Underlying Rulings In ACA Reinsurance Row
WASHINGTON, D.C. — The government filed a June 26 notice in a suit over the Transitional Reinsurance Program (TRP) of the Patient Protection and Affordable Care Act (ACA) that it is appealing a $185,230,024.42 judgment in favor of an opt-in class of 357 self-insured, self-administered employee health and welfare benefit plans (SISAs) and underlying U.S. Court of Federal Claims rulings.
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June 27, 2023
Stay Of 3rd Circuit Mandate Sought In Microcaptive Info Case Pending Review Bid
PHILADELPHIA — After the Third Circuit U.S. Court of Appeals denied its rehearing petition in the case a panel said “pits Delaware’s authority to protect corporate privacy against the power of the IRS,” the Delaware Department of Insurance (DDOI) asked for issuance of the mandate to be stayed, saying it intends to seek review by the U.S. Supreme Court.
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June 22, 2023
North Carolina Panel Affirms Enforceability Of MOU Involving Insolvent Insurers
RALEIGH, N.C. — A North Carolina appellate court affirmed in part a lower court’s decision that a memorandum of understanding (MOU) was enforceable in a breach of contract and fraud suit filed by insolvent insurers against their purchaser and his affiliated companies, finding that the lower court correctly relied on evidence to affirm the fraud judgment.
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June 20, 2023
Government, Defendants Debate Ciminelli In Securities Fraud Case
BROOKLYN, N.Y. — In New York federal court filings, former hedge fund executives are arguing that the U.S. Supreme Court’s recent decision in Ciminelli v. United States requires vacation of their convictions for securities fraud and other crimes in an alleged scheme involving a reinsurer, while the government contends that the decision “has no application to this case.”
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June 16, 2023
Settlement Of Up To $117.7M To Proceed In Life Insurance Cost Increase Suits
PHILADELPHIA — A Pennsylvania federal judge has granted preliminary approval of a class settlement including a fund of up to $117.75 million and a five-year cost of insurance (COI) rate increase freeze that would resolve two similar cases regarding universal life insurance policies.
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June 14, 2023
COMMENTARY: Does Follow The Form And Follow The Settlements Trump Contrary Governing Law In Facultative Certificates?
By Robert M. Hall
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June 15, 2023
Trial Set In Suit Seeking Nonpublic Info On Holding Company’s Captive Reinsurer
WILMINGTON, Del. — A one-day trial in the Delaware Court of Chancery has been set for June 26 in a suit seeking nonpublic information regarding a captive reinsurer, with the parties filing a joint pretrial stipulation and the plaintiff filing a pretrial brief.
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June 15, 2023
Third-Party Complaint Is Filed In Suit Involving Reinsurance Commutation
JACKSON, Miss. — Defendants in a lawsuit involving what the plaintiff alleges was “a corporate insurance and risk management program promoted, created, and put in place by Defendants for Domino’s Pizza franchisees” have filed a third-party complaint against Domino’s Pizza LLC and related entities in a Mississippi federal court.
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June 14, 2023
Facultative Reinsurance Brokerage Loses TRO Bid In Suit Over Alleged Raid
CHICAGO — Ruling that plaintiffs in a breach of contract and Defend Trade Secrets Act (DTSA) suit over an alleged “raid” of a facultative reinsurance brokerage demonstrated neither “a likelihood of success on the merits” nor that they would be irreparably harmed without a temporary restraining order (TRO), an Illinois federal judge denied their TRO bid.
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June 06, 2023
COMMENTARY: State Laws Prohibiting Arbitration Of Insurance Disputes: Are They Pre-Empted by the New York Convention?
By Robert M. Hall
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June 13, 2023
1 Appellee Tells 2nd Circuit It Reached Settlement With Reinsurer In Coverage Row
NEW YORK — One of three appellees in a reinsurer’s appeal over a decision that direct-benefits estoppel does not apply has informed the Second Circuit U.S. Court of Appeals that it has reached a settlement with the reinsurer.
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June 13, 2023
Relators Raise SuperValu In 8th Circuit Appeal Of Qui Tam Crop Insurance Row
ST. LOUIS — Relators who are asking the Eighth Circuit U.S. Court of Appeals to reverse vacation of judgment in a qui tam crop insurance case now contend that a recent U.S. Supreme Court decision “makes it clear” that a Minnesota federal court’s interpretation of “knowingly” “is not the correct legal standard.”
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June 13, 2023
Bifurcated Settlement Proposed For 1 Defendant In SEC Suit Over Alleged Fraud
DURHAM, N.C. — The U.S. Securities and Exchange Commission on June 12 asked a North Carolina federal court to approve a bifurcated settlement it 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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June 13, 2023
Partial Production Of Arbitration Record Compelled In Suit Over Defense Costs
DETROIT — With a motion for declaratory judgment pending in a suit over defense costs, a Michigan federal judge has granted a reinsurer’s motion to compel partial, redacted production of a separate arbitration record.
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June 12, 2023
Insurers Seek Dismissal Of Appeal Over Partial Stay Of Adversary Proceeding
NEW YORK — Arguing lack of subject matter jurisdiction, appellees asked a New York federal court to dismiss an appeal seeking to overturn a New York federal bankruptcy judge’s order partially staying an adversary proceeding filed by the joint provisional liquidators (JPLs) of Bermuda insurer and reinsurer PB Life and Annuity Co. Ltd. (PBLA) and other debtors.
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June 12, 2023
Parties In Reinsurance Dispute File Briefs On Ultimate Net Loss Provision
MONTGOMERY, Ala. — Parties in a complex breach of contract suit over reinsurance billings filed new briefs on June 9 addressing just one claim at the direction of the Alabama federal court; specifically, they dispute the interpretation of a contract provision regarding ultimate net loss and whether it applies to $385,546.03 the insurer incurred in a suit against its errors and omissions (E&O) carrier.
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June 09, 2023
TRO Bid Denied In Suit Over Alleged Raid On Facultative Reinsurance Group
CHICAGO — An Illinois federal judge denied a motion for a temporary restraining order (TRO) in a suit asserting claims including breach of contract and violation of the federal Defend Trade Secrets Act (DTSA) regarding an alleged “raid” of a facultative reinsurance group.
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June 08, 2023
Delaware Regulators Ask 3rd Circuit To Rehear Case Over Microcaptive Info
PHILADELPHIA — Arguing in part that a Third Circuit U.S. Court of Appeals panel’s ruling “conflicts with decisions of each of the other Circuit Courts of Appeals which have enunciated a” test for reverse-preemption under the McCarran-Ferguson Act (MFA), the Delaware Department of Insurance (DDOI) petitioned for rehearing and rehearing en banc.
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June 08, 2023
Panel Denies English Reinsurer’s Rehearing Bid In All-Sums Allocation Case
NEW YORK — A Second Circuit U.S. Court of Appeals panel denied a petition for panel rehearing in which an English facultative reinsurer argued that the opinion “misreads the context” of one English case and “overlooked an English appellate decision reaching exactly the opposite conclusion” in a case concerning all-sums allocation of an environmental claims settlement.
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June 01, 2023
Captive Services Dispute Is Dismissed With Prejudice On Stipulation By All Parties
PITTSBURGH — As stipulated by all parties, a Pennsylvania federal judge has dismissed with prejudice a dispute over a captive services agreement in which three breach of contract claims survived summary judgment.
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June 01, 2023
Remand To Hawaii State Court Urged In Lawsuit Over Purported Reinsurance
HONOLULU — The plaintiff in a dispute over a purported reinsurance policy asked a Hawaii federal court to remand the case “in light of the double presumptions against removal jurisdiction and fraudulent joinder.”
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May 31, 2023
Insurer Dismisses Suit Against Reinsurers Over Allegedly Tardy Payments
NEW YORK — An insurer filed a notice of voluntary dismissal without prejudice regarding its complaint in New York federal court over allegations that two reinsurers breached contracts by not promptly paying all they owe.