Mealey's Reinsurance
-
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.
-
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.
-
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.
-
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).
-
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).
-
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.
-
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.”
-
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.”
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.”
-
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.
-
June 14, 2023
COMMENTARY: Does Follow The Form And Follow The Settlements Trump Contrary Governing Law In Facultative Certificates?
By Robert M. Hall
-
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.
-
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.
-
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.
-
June 06, 2023
COMMENTARY: State Laws Prohibiting Arbitration Of Insurance Disputes: Are They Pre-Empted by the New York Convention?
By Robert M. Hall
-
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.