Mealey's Reinsurance
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August 14, 2023
In Post-Trial Briefs, Parties Spar Over Nonpublic Info On Captive Reinsurer
WILMINGTON, Del. — Post-trial briefs have been filed in the Delaware Court of Chancery in a suit over a captive reinsurer that issued dividends totaling approximately $1.2 billion, with a hedge fund arguing that it is entitled to nonpublic information under Delaware law and a public holding company asserting several contentions against that premise.
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August 11, 2023
Judge Compels Arbitration, Grants Dismissal In Fraud Suit Involving Reinsurance
GREENSBORO, N.C. — Compelling arbitration and granting dismissal without prejudice in a suit over an alleged scheme involving reinsurance, a North Carolina federal judge on Aug. 10 said in part that the plaintiff’s consent to arbitrate all claims means “there is no reason for this case to remain on this Court’s docket.”
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August 10, 2023
Delay Doesn’t Doom Amendment Bid In Row Over Sex Abuse Case Settlements
SEATTLE — Ruling that “egregious” delay did not outweigh four other factors, a Washington federal judge granted a motion for leave to add allegations in an interlocal cooperative’s dispute with a foreign reinsurer over reimbursement for defense and settlement of suits alleging sexual abuse.
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August 09, 2023
Justice Seals Communications With Liquidated Insurer, But Not Asbestos Settlement
NEW YORK — A New York justice found no good reason to seal or redact the amount a liquidator settled asbestos claims for, but said communications among the liquidator, counsel and the referee who oversaw the settlements included discussion of litigation strategy and would be sealed.
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August 04, 2023
Plaintiffs Oppose Dismissing Suit Over Microcaptive Insurer Reporting Requirements
SALT LAKE CITY — Contending that differences the government says distinguish this case from CIC Services v. IRS are “immaterial,” plaintiffs filed an opposition to a motion seeking dismissal of their lawsuit in Utah federal court that challenges a 2016 Internal Revenue Service notice imposing reporting requirements concerning microcaptive insurance companies.
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August 04, 2023
Insurer Files 4th Suit Seeking Asbestos Settlement Reimbursement From Reinsurers
OMAHA, Neb. — An insurer that has invoked reinsurance contracts in seeking reimbursement for a settlement it reached with Montana regarding alleged asbestos exposures has filed its fourth similar lawsuit in Nebraska federal court.
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August 04, 2023
Wisconsin Judge OKs Rehab Plan For Reinsurer Of Town Mutual Insurers
MADISON, Wis. — A Wisconsin judge has approved a rehabilitation plan for Wisconsin Reinsurance Corp. and its subsidiary 1st Auto & Casualty Insurance Co. that will, among other things, “re-mutualize” Wisconsin Re, establish a reinsurance pool for town mutual insurers that Wisconsin Re would administer and narrow 1st Auto’s focus.
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August 03, 2023
Parties Make Summary Judgment Arguments In Defense Costs Row Involving Reinsurer
DETROIT — In competing Aug. 2 summary judgment motions in Michigan federal court in a dispute over defense costs, the parties urged different interpretations of the umbrella policies the reinsurance liability follows and the reinsurer argued that collateral and judicial estoppel apply.
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August 03, 2023
Parties In Reinsurance Binding Row Stipulate To Dismissal With Prejudice
BOSTON — More than half a year after reporting ongoing arbitration, the parties in a dispute over the binding of a medical stop loss excess reinsurance contract filed a one-paragraph stipulation of dismissal with prejudice in Massachusetts federal court.
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August 02, 2023
New York Panel Affirms Ruling Against Reinsurer In Defense Costs Row
ROCHESTER, N.Y. — Ruling that the voluntary payment doctrine applies, a New York appeals court panel upheld summary judgment against a reinsurer on its breach of contract counterclaim in a defense costs dispute.
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August 01, 2023
Judge Reverses Dismissal Of Adversary Proceeding Challenging Transfers
NEW YORK — Applying the “conceivable effect” test and finding “related to” jurisdiction, a New York federal judge on July 31 reversed dismissal of a Puerto Rico insurance company’s adversary proceeding against entities it alleged received fraudulent conveyances from a reinsurer that is in liquidation.
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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.