Mealey's Reinsurance : Mealey's : Legal News & Analysis

Mealey's Reinsurance

June 28, 2024
Citing Spizzirri, Insurer Asks 7th Circuit To Dismiss Appeal In Arbitration Estoppel Row

CHICAGO — Arguing that Smith v. Spizzirri renders deficient “the basis for this Court’s appellate jurisdiction,” an insurer filed a June 27 motion in the Seventh Circuit U.S. Court of Appeals to dismiss reinsurers’ fully briefed appeal concerning the effects of prior arbitration involving asbestos-related liabilities.
June 27, 2024
2nd Circuit Dismisses Bid To Overturn Revival Of Adversary Proceeding

NEW YORK — In a summary order citing a lack of appellate jurisdiction, a Second Circuit U.S. Court of Appeals panel dismissed consolidated appeals over revival of an adversary proceeding in federal bankruptcy court relating to allegations of fraudulent conveyances from a reinsurer in liquidation.
June 27, 2024
Suit Against Former Underwriter Gets Quick Toss Over Jurisdictional Issues

MIAMI — Outlining “two deficiencies” in the jurisdictional allegations, a Florida federal judge dismissed without prejudice a suit that two affiliated companies filed against a former underwriter over conduct they allege included greatly exceeding his authority by executing a facultative retrocession agreement to cover a risk of more than $44 million.
June 26, 2024
2 Stipulated Dismissals Granted In Insurer’s Suit Over Asbestos Liabilities Row

OMAHA, Neb. — Two defendants referred to as reinsurers in a suit National Indemnity Co. (NICO) filed over a $157.2 million settlement it reached with Montana regarding alleged asbestos exposures have been dismissed with prejudice under a joint stipulation that a Nebraska federal judge granted June 24.
June 26, 2024
Special Discovery Master Does In Camera Review In Indemnification Case

TRENTON, N.J. — Following in camera review in New Jersey federal court in a dispute between insurers and reinsurers over indemnification for asbestos bodily injury claims, a special discovery master directed insurers to produce all or part of roughly two-thirds of the sample documents he considered.
June 25, 2024
DOL Reports To Congress On Its Review Of Pension Risk Transfer Guidance

WASHINGTON, D.C. — In a June 24 report to Congress noting the increasing use of pension risk transfers (PRTs) and the growth of reinsurance activity in the life insurance industry, the Employee Benefits Security Administration (EBSA) of the U.S. Department of Labor (DOL) said more exploration is needed before deciding whether some factors in guidance it issued nearly three decades ago “need revision or supplementation and whether additional guidance should be developed.”
June 25, 2024
Breach Of Contract Case Stayed In Row Between Insurer In Rehab And Malta Company

RALEIGH, N.C. — A North Carolina federal court granted an insurer in rehabilitation’s motion to stay the breach of contract case it filed against a Malta-based company for the company’s failure to make payments on a loan, staying the case until cross-motions for summary judgment are resolved in a related pending consolidated case.
June 24, 2024
Former Underwriter Is Sued Over Facultative Retrocession Deal, Other Allegations

MIAMI — Asserting claims for breach of contract and unjust enrichment, two affiliated companies sued a former underwriter in Florida federal court over conduct they allege included greatly exceeding his authority by executing a facultative retrocession agreement to cover a risk of more than $44 million.
June 21, 2024
TRO Extended In RICO, Fraud Suit Involving Reinsurer’s Parent Company

NEW YORK — A New York federal judge has extended a temporary restraining order (TRO) entered against the parent company of Bermuda reinsurer 777 Re Ltd. and other defendants in a fraud and racketeering lawsuit over a secured credit facility and related guaranty agreement.
June 21, 2024
Revised $195,000 Class Deal Gets Initial OK In Suit Alleging Fraudulent Policies

SANTA ANA, Calif. — Ruling various revisions sufficient, a California federal judge granted preliminary approval to a $195,000 settlement in a suit over alleged fraud involving captive reinsurance, also modifying the preliminarily certified settlement class.
June 20, 2024
Insurer In Rehab Gets Stay In Breach Of Contract Suit Against Investment Firm

RALEIGH, N.C. — A North Carolina federal court granted an insurer in rehabilitation’s motion to stay the breach of contract case it filed against a Malta-based investment firm for the firm’s purported failure to make payments on a loan, staying the case until cross-motions for summary judgment are resolved in a related pending consolidated case.
June 20, 2024
Recapture Argument Doesn’t Stop Arbitration Confirmation In Reinsurance Rates Row

NEW YORK — Ruling that recapture of all policies at issue in a reinsurance rates dispute didn’t render confirmation of a final arbitration award unnecessary, a New York federal judge granted the reinsurer’s confirmation request.
June 20, 2024
Couple Appeals Tax Court Ruling On Purported Microcaptives To 5th Circuit

NEW ORLEANS — One of three recent U.S. Tax Court rulings for the commissioner of Internal Revenue regarding purported microcaptive arrangements is being appealed to the Fifth Circuit U.S. Court of Appeals.
June 20, 2024
6th Circuit Appeal Filed Over Reinsurer’s Collateral Estoppel Win In Defense Row

CINCINNATI — A defense costs dispute concerning asbestos lawsuits and prior arbitration is going to the Sixth Circuit U.S. Court of Appeals, with an insurer filing a notice of appeal regarding a Michigan federal judge’s ruling that collateral estoppel applies.
June 19, 2024
N.C. High Court Extends Brief Deadline In Insurer’s Bid To Enforce $524M Judgment

RALEIGH, N.C. — Without providing reasoning, the North Carolina Supreme Court on June 18 ordered that an insurer be “allowed” an extension to file its brief in the insurer’s suit seeking enforcement of a $524,009,051.26 judgment against Greg E. Lindberg, the founder of a multinational investment company who was recently convicted by a federal jury of a scheme to bribe North Carolina’s insurance commissioner.
June 19, 2024
Split West Virginia High Court Requires Notification In Mine Subsidence Row

CHARLESTON, W. Va. — In a majority ruling that led three justices to write separately, the Supreme Court of Appeals of West Virginia vacated and remanded an order in a mine subsidence dispute because the state’s attorney general wasn’t notified of arguments that the court said “drew into question the constitutionality of statutes affecting the public interest.”
June 18, 2024
Procedural Proposals In Reinsurer’s Liquidation Draw Numerous Objections

WILMINGTON, Del. — A receiver’s procedural proposals for the liquidation of a life and health reinsurer have drawn numerous objections in the Delaware Chancery Court, with nonparty American Council of Life Insurers (ACLI) arguing that two of the procedures “would violate Delaware law, set a profoundly adverse and conflicting precedent, and further unduly harm ACLI’s members and the insurance marketplace.”
June 18, 2024
Firms Accused Of Participation In $1B RICO Insurance Fraud Scheme Seek Dismissal

RALEIGH, N.C. —Malta-based investment firms Standard Advisory Services Ltd. and Standard Financial Ltd. moved in North Carolina federal court to join other defendants’ motion for partial dismissal of the complaint related to the defendants’ alleged participation in a $1 billion Racketeer Influenced and Corrupt Organizations Act (RICO) scheme to defraud now-insolvent insurers and their policyholders by using policyholder money to purchase noninsurance companies and to divert policyholder money.
June 18, 2024
Judge Grants Consolidation Of 4 Reinsurers’ Suits For Alleged Breach Of Contract

FORT WORTH, Texas — After granting consolidation of four reinsurers’ lawsuits against National Transportation Associates Inc. (NTA) over allegedly inflated provisional commissions and breach of various agreements, a Texas federal judge stayed all deadlines in the individual cases, directing the parties to file a joint report regarding a scheduling conference.
June 12, 2024
TPA Spat Arises In Liquidation; Receiver Proposes Dispute Procedures

WILMINGTON, Del. — A dispute over third-party administrator (TPA) services has arisen in the liquidation of life and health reinsurer Scottish Re (U.S.) Inc. (SRUS), with the longtime TPA asking the Delaware Chancery Court to confirm termination of the relevant agreement and the receiver seeking a determination of contempt against that TPA.
June 11, 2024
English Justice: Aviation Insurance Disputes Should Proceed In Ukraine

LONDON — An English justice considering aviation insurance disputes over aircraft that remain in Ukraine airports closed after Russia’s invasion concluded “that the exclusive jurisdiction clauses [EJCs] in the reinsurance contracts are binding and enforceable, and apply,” so the claims should proceed in Ukrainian courts.
June 10, 2024
4th Circuit Affirms Dismissal Of Suit Against Former Owner Of Insolvent Insurers

RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals on June 7 affirmed dismissal of a fraudulent concealment suit by a call center company against a holding company and its owner, Greg E. Lindberg, who also previously owned now-insolvent insurers and was convicted of bribery in an unrelated action, finding that the call center company failed to allege that Lindberg’s holding company knew about his unlawful conduct.
June 10, 2024
Railroad’s Certification Bid In Reinsurance Preclusion Dispute Is Denied

SPRINGFIELD, Ill. — Citing judicial economy and a “question of law requirement,” an Illinois federal judge denied a railroad company’s motion seeking “two alternative grounds for appellate jurisdiction” in a suit over mine subsidence claims.
June 07, 2024
9th Circuit Gives Agencies Win In Crop Insurance ‘Farming Activity’ Fight

SAN FRANCISCO — Ruling that the challenged interpretation of “farming activity” survives scrutiny under Auer v. Robbins and the Administrative Procedure Act (APA), a Ninth Circuit U.S. Court of Appeals panel affirmed a decision for government agencies in a crop insurance dispute involving federal reinsurance and the structure of a farming operation.
June 03, 2024
Constructive Denial, Other Issues Disputed In Appeal Over Crop Insurance Probe

CINCINNATI — In a Sixth Circuit U.S. Court of Appeals crop insurance case where farmers who sued over a “never-ending stalled investigation” are seeking partial vacatur of a dismissal ruling, federal regulators, the insurer and the farmers have filed briefs disputing issues including sovereign immunity waivers and constructive denial.