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Mealey's Reinsurance

  • November 08, 2024

    Gold Mining Co. Estimates Losses In Coverage Row At More Than $200M

    NEW YORK — A New York federal judge ordered parties to file a joint report on the prospect of arbitrating a breach of contract lawsuit for losses estimated at more than $200 million for a gold mining breakdown that involves a dispute over whether the defendants are direct insurers or reinsurers of the plaintiff.

  • November 06, 2024

    7th Circuit Hears Argument On Arbitration Preclusion Dispute In Reinsurers’ Appeal

    CHICAGO — In Nov. 5 oral argument before a Seventh Circuit U.S. Court of Appeals panel concerning where disputes over the preclusive effect of prior arbitration are decided, reinsurers acknowledged that the reversal they seek would create a circuit split, while an insurer cited Smith v. Spizzirri in urging the court to vacate the challenged dismissal to arbitration in favor of a stay during arbitration.

  • November 06, 2024

    Insurer Files Counterclaim, Third-Party Complaint In Reinsurance Dispute

    TAMPA, Fla. — Telling an Illinois federal court that it is willing to reimburse claims totaling $1,889,541 if it is first paid “premiums of $4,156,531” in a reinsurance dispute, an insurer filed a declaratory judgment counterclaim against the reinsurer combined with a third-party complaint against the insured.

  • November 04, 2024

    Bid To File Redacted Agreements Under Seal Is Granted In Direct Action Case

    NEW ORLEANS — Without ruling on issues including whether “redacted information is discoverable,” a Louisiana federal magistrate judge granted a third-party defendant’s opposed request for leave to file four redacted reinsurance agreements under seal in a dispute regarding direct-action claims against the reinsurers.

  • October 31, 2024

    Bid To Seal Reinsurance Agreements Disputed In Case Involving Direct Action

    NEW ORLEANS — What information in four reinsurance agreements must be revealed is the subject of a dispute in Louisiana federal court, with a third-party plaintiff invoking a local rule and referencing several other cases and a third-party defendant countering that the third-party plaintiff “continues to seek commercially sensitive reinsurance information from a competitor which is not relevant to any viable claim or defense in this case.”

  • October 30, 2024

    Arbitration Bid Fought In Reinsurance Billing Row Involving MOU

    LOS ANGELES — Urging a California federal court to reject an arbitration bid in a lawsuit over reinsurance billings arising from asbestos bodily injury claims, an insurer contends that the abstention doctrine doesn’t apply and that the arbitration clause is in a different agreement than the one at issue and doesn’t include the present billing dispute.

  • October 30, 2024

    Court Gets Updates On Objections To Proposals In Reinsurer’s Liquidation

    WILMINGTON, Del. — Delaware Chancery Court has been updated on the status of disputes over four proof of claim (POC) procedures the receiver for life and health reinsurer Scottish Re (U.S.) Inc. (SRUS) proposed for its liquidation, with the receiver filing an acknowledgement “that clarifies and should resolve several aspects which prompted objections” and certain cedents and retrocessionaires listing issues that they say “remain unresolved.”

  • October 30, 2024

    Reinsurance Broker Wins Discovery Stay In Suit Over Vesttoo Collapse Losses

    DALLAS — Granting a discovery stay in a breach of contract suit over losses associated with the collapse of Vesttoo Ltd. pending resolution of a dismissal bid, a Texas federal judge said that “under the circumstances” the stay “could streamline” resolution of the case and will not prejudice the plaintiff.

  • October 29, 2024

    Indiana Appeals Panel Reverses Ruling For Employer In Attorney Fees Dispute

    INDIANAPOLIS — In an unpublished memorandum decision reversing a state court’s order, an Indiana Court of Appealspanel ruled in part that an employer that participates in the Indiana Assigned Risk Reinsurance Plan didn’t exhaust its administrative remedies because it had not requested appellate attorney fees and prejudgment interest from the plan administrator.

  • October 28, 2024

    Docs Put On Record After Oral Argument In ERISA Pension Risk Transfer Case

    GREENBELT, Md. — After oral argument on the only fully briefed dismissal motion among the similar recent putative class actions challenging pension risk transfers (PRTs) under the Employee Retirement Income Security Act, Lockheed Martin Corp. filed 10 documents at the direction of a Maryland federal judge.

  • October 28, 2024

    More Briefing Ordered In Microcaptive Case Involving Economic Substance Doctrine

    WASHINGTON, D.C. — A U.S. Tax Court judge who is presiding over consolidated cases involving purported microcaptive insurance companies and considering the “economic substance doctrine”  in regard to the remaining issue of accuracy-related penalties has directed the parties to file simultaneous briefs by Dec. 19.

  • October 24, 2024

    Timely Notice, Other Issues Disputed In Reinsurer’s 5th Circuit Appeal

    NEW ORLEANS — Contending in its appellee brief that the trial court “followed its obligation to effectuate the parties’ intent,” an insurer urged the Fifth Circuit U.S. Court of Appeals to uphold a $2,866,423.97 judgment against a reinsurer that includes attorney fees.

  • October 23, 2024

    Reconsideration Of Dismissal Sought In Crop Insurance Extracontractual Damages Row

    COOKEVILLE, Tenn. — Arguing that dismissal of their suit seeking extracontractual damages from a crop insurer “was incorrect and premature” because a related suit against federal regulators remains pending, farmers moved in Tennessee federal court for reconsideration of the ruling against them.

  • October 23, 2024

    Extension Again Granted In $1B RICO Insurance Fraud Scheme Involving Mogul

    RALEIGH, N.C. — Without explanation, a North Carolina federal judge granted defendants’ third motion for an extension to answer 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 mogul Greg Lindberg.

  • October 23, 2024

    $21K Bill Of Costs Filed In Case With $576M Judgment Against Insurance Magnate

    GREENSBORO, N.C. — Life insurer Universal Life Insurance Co. (ULICO) filed a $21,963.01 bill of costs in a North Carolina federal court in a suit with a judgment requiring insurance magnate Greg Lindberg, former owner of now-insolvent insurers, to pay more than $576 million pursuant to a personal guaranty for a reinsurance agreement.

  • October 22, 2024

    Remand Dispute In Reinsurance Row Focuses On Joint Powers Authority

    LOS ANGELES — Whether a joint powers authority (JPA) is a citizen of California for purposes of diversity jurisdiction is disputed in a California federal court lawsuit over a reinsurer’s denial of coverage for litigation arising from sexual abuse allegations, with the JPA urging remand in its reply brief.

  • October 21, 2024

    Reinsurers Move To Compel Arbitration In Billings Dispute Involving MOU

    LOS ANGELES — Arguing that a dispute over reinsurance billings arising from asbestos bodily injury claims falls within the scope of the “broad” arbitration agreement in the excess of loss reinsurance treaty at issue, reinsurers in an Oct. 18 motion ask a California federal court to compel arbitration and dismiss or stay the case.

  • October 16, 2024

    6th Circuit Affirms Dismissal Of Suit Over Stalled Crop Insurance Probe

    CINCINNATI — Affirming dismissal of a case where farmers challenged what they called a “never-ending stalled investigation” into their crop insurance claims, a Sixth Circuit U.S. Court of Appeals panel on Oct. 15 said the Federal Crop Insurance Act (FCIA) doesn’t clearly waive “sovereign immunity with respect to constructive denial claims.”

  • October 16, 2024

    Parties Brief Dispute Over Which Legal Fees Fall Under Reinsurance Contract

    MONTGOMERY, Ala. — An Alabama federal judge has ordered an insurer to respond to a reinsurer’s objections to parts of declarations it submitted in summary judgment briefing concerning disputed legal fees.

  • October 14, 2024

    Bid To Dismiss Louisiana Direct Action Against Reinsurers Ruled Premature

    NEW ORLEANS — A motion to dismiss direct-action claims against unnamed reinsurers asserted in a third-party complaint has been denied as premature, with a Louisiana federal judge saying the key factor is whether the contract at issue is one of indemnity or liability.

  • October 14, 2024

    Suit Against Captive Reinsurer, Others Follows Alleged Board Upheaval

    WASHINGTON, D.C. — Alleging in part that board upheaval left a captive reinsurer “under the management of inexperienced board members,” a risk retention group (RRG) sued three entities it claims it long had a close relationship with, asserting claims in a District of Columbia federal court for breach of contract, breach of the covenant of good faith and fair dealing and tortious interference with business relations.

  • October 14, 2024

    Owners Of Aircraft Valued At More Than $222M Sue Insurers In State Court

    STAMFORD, Conn. — Claiming breach of contract and bad faith, five entities that own two freighter planes that they allege a Russian cargo airline has refused to return after the invasion of Ukraine have filed a suit in Connecticut state court against more than two dozen “insurers, underwriters, underwriting managers, and insurance subscribers of coverage in the international aviation insurance market.”

  • October 10, 2024

    Judge: FCIC Determination Requirement Applies To Tobacco Farmer’s Claims

    WINSTON-SALEM, N.C. — Ruling that a Federal Crop Insurance Corp. (FCIC) “determination requirement applies to all claims seeking extra-contractual damages related to a federally reinsured crop insurance policy,” a North Carolina federal magistrate judge ordered a farmer to show cause why his suit should not be dismissed pending compliance with that requirement.

  • October 10, 2024

    Florida Panel Dismisses Reinsurer’s Appeal From Insolvency Proceeding

    TALLAHASSEE, Fla. — In a brief per curiam disposition, a Florida appellate panel partly dismissed and partly affirmed an offshore reinsurer’s appeal of the denial of its motion to lift an automatic stay in a workers’ compensation insurer’s liquidation and to compel arbitration.

  • October 10, 2024

    Standing, Adequacy Of RICO Allegations Disputed In Reinsurer’s Lawsuit

    BROOKLYN, N.Y. — A New York federal judge has dismissed a Racketeer Influenced and Corrupt Organizations (RICO) Act lawsuit without prejudice against more than a dozen defendants that a reinsurer alleged took part in purportedly fraudulent workers’ compensation claims and personal injury lawsuits.