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Mealey's Reinsurance

  • October 03, 2024

    Alter Ego Liability Theory Rejected In Ruling On Summary Judgment Motions

    SACRAMENTO, Calif. — Ruling on two motions for summary judgment on cross-claims in a suit involving reinsurance and related agreements, a California federal judge rejected an alter ego argument, granting one motion fully and the other partially.

  • October 02, 2024

    English Appellate Court Rules Against Reinsurer In COVID-19 ‘Catastrophe’ Case

    LONDON — Rejecting both main arguments a reinsurer advanced in a dispute over business interruption losses, a panel of the Court of Appeal of England and Walesagreed with a lower court’s ruling that under the reinsurance agreement, the COVID-19 pandemic is a “catastrophe” and an “Hours Clause” doesn’t exclude individual losses that continue to develop more than 168 hours after they first occur.

  • September 30, 2024

    Reinsurer’s Declaratory Judgment Suit Is Tossed For Lack Of Contractual Privity

    BROOKLYN, N.Y. — Ruling in part that a reinsurer “failed to plead privity or third-party beneficiary status” and therefore failed to state any claims, a New York federal judge on Sept. 27 dismissed the lawsuit in which the reinsurer sought a declaratory judgment regarding state court litigation arising from a building’s partial collapse.

  • September 27, 2024

    Farmers, USDA Spar Over Decision Regulators Made On Remand Of Crop Insurance Row

    BAY CITY, Mich. — Farmers and federal regulators are again sparring in a Michigan federal court over a crop insurance dispute involving a dry-bean revenue endorsement (DBRE), with issues of contention now including whether the court retains jurisdiction after having awarded attorney fees under the Equal Access to Justice Act (EAJA) and whether regulators followed the court’s directions on remand.

  • September 27, 2024

    Judge Denies Cross-Motions In Reinsurance Dispute Over Sex Abuse Case Settlements

    SEATTLE — A Washington federal judge sided with an interlocal cooperative on a policy interpretation dispute but denied the parties’ cross-motions in a Sept. 26 ruling, concluding that “the language of the aggregation provision specifically covers ‘[a]ll claims based on or arising out of sexual abuse by an employee’ — including those claims that are not themselves allegations of sexual abuse.”

  • September 26, 2024

    Claims Objection Bar Date Extension Sought In Liquidation Of Vesttoo

    WILMINGTON, Del. — A Delaware federal bankruptcy judge has been asked to extend the claims objection bar date by 180 days in the Chapter 11 liquidation of Vesttoo Ltd. and its dozens of affiliates.

  • September 25, 2024

    Regulators Win Summary Judgment In Crop Insurance Good Farming Practices Row

    LUBBOCK, Texas — Saying in part that the record doesn’t support the claim that a good farming practices determination was made arbitrarily or capriciously, a Texas federal judge granted summary judgment for federal regulators in a crop insurance case.

  • September 25, 2024

    Judge Grants Extension In $1B RICO Insurance Fraud Scheme Involving Magnate

    RALEIGH, N.C. — Without providing an explanation, a North Carolina federal judge granted defendants’ motion for an extension to file answers to an amended complaint in a suit accusing them of Racketeer Influenced and Corrupt Organizations Act (RICO) violations related to their purported participation in a $1 billion scheme to defraud now-insolvent insurers once owned by former insurance magnate Greg Lindberg.

  • September 25, 2024

    Couple Urges 5th Circuit To Say Ross Remains Its Standard For Insurance Cases

    NEW ORLEANS — Asking the Fifth Circuit U.S. Circuit Court of Appeals to reverse a U.S. Tax Court ruling concerning what they unsuccessfully argued were microcaptive insurance arrangements entitled to tax benefits, appellants contend in their opening brief that the Internal Revenue Service and Tax Court “restricted the meaning of the term ‘insurance’ contrary to Fifth Circuit and Supreme Court precedent.”

  • September 24, 2024

    Judge Grants DOJ’s $1.45M Forfeiture Bid In Bribery Case Against Insurance Magnate

    STATESVILLE, N.C. — A North Carolina federal judge on Sept. 23 granted the Department of Justice’s (DOJ) motion for the preliminary forfeiture of two bank accounts totaling $1,454,758.45 seized by the Federal Bureau of Investigation while investigating a case resulting in a  retrial at which the former owner of now-insolvent insurers was again convicted of bribery and conspiracy, finding that the government established the required nexus to show that the seized proceeds were related to the crimes.

  • September 24, 2024

    Discovery Ruling Issued In Asbestos Coverage Row Involving Insolvent Insurer

    OMAHA, Neb. — A Nebraska federal magistrate judge granted in part National Indemnity Co. (NICO)’s motion to compel discovery of an insurer in its suit seeking to enforce obligations by multiple insurers, one of whom is now insolvent, for the liability NICO incurred related to claims for asbestos exposure, finding that the attorneys’ eyes only designation (AEO) must be removed from discovery material due, in part, to the insurer’s failure to “articulate why an AEO designation is the right tool to prevent this harm.”

  • September 19, 2024

    Appeal Is Filed Over Dismissal Of Case Ruled Untimely In ACA Reinsurance Dispute

    WASHINGTON, D.C. — Dismissal of a group health plan’s claims regarding allegedly illegal exactions made under the Transitional Reinsurance Program (TRP) of the Patient Protection and Affordable Care Act (ACA) is being appealed to the Federal Circuit U.S. Court of Appeals.

  • September 18, 2024

    Status Conference Sought In Arbitration Awards Row In Reinsurance Dispute

    NEW YORK — Months after briefing concluded on pending cross-petitions in an arbitration awards dispute involving attorney fees and whether there was a probability or a possibility of an excess judgment in the underlying case, a reinsurer on Sept. 17 asked a New York federal court for “a status conference to determine whether the parties may supply the Court with any additional materials to resolve this cross-petition.”

  • September 18, 2024

    Magistrate Partly Grants Motion To Quash Discovery On Reinsurance, Reserves

    LAKE CHARLES, La. — Partly granting an insurer’s motion to quash in a breach of contract and bad faith suit over home damage purportedly caused by hurricanes, a Louisiana federal magistrate judge cited two other decisions in ruling that that certain reinsurance and reserve information and the requested prior deposition testimony are within the scope of permissible discovery.

  • September 17, 2024

    U.S. Tax Court Now Has 8 Rulings For IRS, 0 Against In Microcaptive Insurance Rows

    WASHINGTON, D.C. — In a Sept. 16 ruling that he said brought the court’s record on purported microcaptive insurance cases to 8-0 in favor of the commissioner of Internal Revenue, a U.S. Tax Court judge found that the corporation that paid purported premiums “achieved no transfer of risk”; that the putative reinsurer “accomplished no meaningful distribution of risk”; and that “the arrangements at issue did not remotely resemble insurance in the commonly accepted sense.”

  • September 17, 2024

    Parties, 10 Amici Weigh In On Economic Substance Doctrine In Microcaptive Case

    WASHINGTON, D.C. — Ten amicus curiae briefs regarding the “economic substance doctrine” have been filed at the invitation of a U.S. Tax Court judge who is presiding over consolidated cases involving purported microcaptive insurance companies and considering the remaining issue of accuracy-related penalties.

  • September 17, 2024

    SEC Files Rule Compliance Notice In Fraud Suit Against Owner Of Defunct Insurers

    WINSTON-SALEM, N.C. — The U.S. Securities and Exchange Commission on Sept. 16 filed a notice of compliance with local rules in a North Carolina federal court regarding its brief responding to a motion to compel discovery filed by insurance magnate Greg Lindberg, a former owner of insurers now in receivership, in a suit alleging that he, his advisory services company and its former executive defrauded clients of more than $75 million.

  • September 17, 2024

    Florida Judge Denies Dismissal Bid In Investors’ Fraud Suit Over $65M Deal

    ORLANDO, Fla. — Without explanation, a Florida judge denied dismissal of a complaint in which entities that purportedly invested about $65 million in a managing general agent just months before affiliated insurance companies were liquidated allege that they were defrauded.

  • September 17, 2024

    Parties In Reinsurance Row Stipulate To Stay While Dispute Is Arbitrated

    CHARLESTON, S.C. — Filing a stipulation in South Carolina federal court, parties in a lawsuit involving reinsurance said they agree that having a related dispute decided in an existing arbitration proceeding “would be the most efficient way to proceed,” so the case can be stayed.

  • September 13, 2024

    Judge Denies Motion To Reconsider Rehab Plan For Workers’ Comp Insurer

    REDWOOD CITY, Calif. — Denying a motion that sought coverage of certain litigation costs for policyholders and a higher interest rate, a California state judge declined to reconsider her ruling approving a rehabilitation plan for California Insurance Co. (CIC), saying she “previously heard and considered these grounds.”

  • September 13, 2024

    2 More ERISA Suits Target Companies, State Street Over Pension Risk Transfers

    Two more putative class actions are challenging pension risk transfers (PRTs) under the Employee Retirement Income Security Act, bringing the total of PRT cases filed in recent months to at least seven.

  • September 11, 2024

    Judge Denies Service-Focused Dismissal Motion In Reinsurance Dispute

    DES MOINES, Iowa — Citing a 1998 U.S. Supreme Court decision, an Iowa federal judge denied a service-focused motion to dismiss a dispute over reinsurance reimbursement, ruling that the plaintiffs “have made the necessary prima facie showing of service upon . . . the Defendants’ appointed agent.”

  • September 11, 2024

    Arbitration Award Of More Than $11.3M Is Confirmed In Retrocession Case

    NEW YORK — Saying that respondent Go Re Inc. hadn’t “put forward any defense, or otherwise appeared in this Action,” a New York federal judge granted a petition to confirm an $11,326,463 arbitration award in a dispute involving a retrocession agreement.

  • September 10, 2024

    Petition On Third-Party Subpoena Prehearing Issue Is Voluntarily Dismissed

    DETROIT — Two weeks after filing a petition to compel compliance with third-party subpoenas for prehearing discovery depositions, an insurer filed a notice of voluntary dismissal without prejudice and a Michigan federal court accordingly dismissed the suit that concerned a $950,742.64 dispute over a medical excess reinsurance agreement that has gone to arbitration.

  • September 05, 2024

    Reinsurer Files Suit Over TPA’s Alleged Mishandling Of Insurance Claims

    BILLINGS, Mont. — Seeking declaratory judgment and damages for claims that it alleges were mishandled and misallocated, a Bermuda-based reinsurer sued an insurer and third-party administrator (TPA) in Montana federal court.