We previously posted about the yearslong reinsurance dispute between Utica Mutual Insurance Co. (the cedent) and Century Indemnity Co. (the reinsurer), involving Utica’s claims that Century breached two reinsurance...more
1/31/2020
/ Allocation Statistics ,
Asbestos ,
Asbestos Litigation ,
Bad Faith ,
Breach of Contract ,
Contract Terms ,
Follow-the-Fortunes Clause ,
Insurance Litigation ,
Prejudgment Interest ,
Recordkeeping Requirements ,
Reinsurance ,
Reinsurance Agreements ,
Settlement
The plaintiffs, U.S. Fire Insurance Co. and North River Insurance Co., issued 12 umbrella and excess umbrella liability policies for a combined coverage of $244 million to a manufacturer of respiratory protection equipment...more
11/26/2019
/ Asbestos ,
Breach of Contract ,
Declaratory Judgments ,
Excess Policies ,
Insurance Claims ,
Insurance Litigation ,
Liability Insurance ,
Motion to Dismiss ,
Pending Litigation ,
Policy Terms ,
Reimbursements ,
Reinsurance ,
Reservation of Rights ,
Stays ,
Umbrella Policies
The case involved a “second layer special casualty excess agreement of reinsurance” under which reinsurers General Reinsurance Corp. and SCOR Reinsurance Co. agreed to cover a certain amount in excess of Chicago Insurance...more
11/13/2019
/ Arbitration ,
Arbitration Agreements ,
Arbitration Awards ,
Arbitrators ,
Asbestos ,
Billing ,
Contract Terms ,
Insurance Litigation ,
Liability Insurance ,
Loss Allocation ,
Reinsurance ,
Stays
We have been tracking certain class actions filed against Applied Underwriters, Inc. and Applied Risk Services, Inc. alleging that the companies fraudulently marketed and sold workers’ compensation insurance programs to...more
We have been tracking an ongoing reinsurance matter in which Odyssey Reinsurance Co. obtained a $3.2 million default judgment against Cal-Regent Insurance Services Corp. and Pacific Brokers Insurance Services (PBIS) as a...more
7/23/2019
/ Alter Ego ,
Creditors ,
Default Judgment ,
Fraudulent Transfers ,
Insurance Litigation ,
Reinsurance ,
Sale of Assets ,
Sales Commissions ,
Successor Liability ,
Summary Judgment ,
UFTA
We have been tracking Odyssey Reinsurance’s action to collect a $3.2 million judgment against Richard and Diane Nagby, the owners of two companies involved in an alleged fraudulent transfer scheme. ...more
South Carolina and Tennessee updated their respective credit for reinsurance statutes consistent with NAIC Credit for Reinsurance Model Law 785. Idaho and Tennessee adopted the NAIC Credit for Reinsurance Model Regulation...more
In a proceeding seeking an order for disclosure of documents from Barclays Bank, the English High Court of Justice considered the scope of the agency involved in a run-off agreement between a reinsurance broker and another...more
The Court of Appeal of England and Wales approved the judgment of the trial court in a reinsurance dispute between Axa and Arab Insurance Group (Arig) related to certain insured energy construction risks. The trial court had...more
The case is pending in a federal district court in New York, and involves three allegedly interconnected contracts purportedly “designed to circumvent [state] insurance laws,” including the laws of New York. ...more
On March 6, 2017, the Governor of South Dakota signed into law House Bill 1045 conforming South Dakota law to the current version of the Credit for Reinsurance NAIC Model Law (Model 785). ...more
The Connecticut Insurance Department has issued two bulletins addressing 2016 and 2017 financial reporting requirements for foreign eligible surplus lines insurers and accredited reinsurers. Regarding surplus lines insurers,...more
On July 21, 2016, we reported on a putative class action filed in a California U.S. district court by Shasta Linen Company against Applied Underwriters, Inc. and its affiliate entities, alleging that the “EquityComp” workers’...more
Applied Underwriters Captive Risk Assurance Company appealed from the denial of its motion to compel arbitration in a dispute related to a reinsurance participation contract with South Jersey Sanitation Company. The trial...more
11/29/2016
/ Appeals ,
Arbitration ,
Federal Arbitration Act ,
Insurance Industry ,
Insurance Litigation ,
Mandatory Arbitration Clauses ,
McCarran-Ferguson Act ,
Motion to Compel ,
Policy Terms ,
Preemption ,
Reinsurance
In a suit by an auto body company against a captive insurance company for rescission of certain workers compensation reinsurance participation agreements, for disgorgement of $70,000 paid thereunder, and for fraud, breach of...more
10/18/2016
/ American Arbitration Association ,
Arbitration ,
Arbitration Agreements ,
Auto Body Shop ,
Breach of Contract ,
Captive Insurance Company ,
Disgorgement ,
Fraud ,
Insurance Industry ,
Mandatory Arbitration Clauses ,
Motion to Compel ,
Participation Agreements ,
Reinsurance ,
Rescission ,
Unfair or Deceptive Trade Practices ,
Workers' Compensation Claim
Excalibur had been in run-off status since 2003, and under regulatory supervision since at least 2013. A Pennsylvania court has now placed Excalibur into liquidation based on three grounds: (1) insolvency – Excalibur’s...more
In the ongoing reinsurance dispute between cedent Utica Mutual Insurance Company and reinsurer Clearwater Insurance Company, about which we most recently posted on February 9, 2016, two developments occurred on July 14, 2016....more
As we previously reported in March 2016, the United States initiated discussions with the European Union to enter into a Covered Agreement addressing: (1) the equivalence of the U.S. insurance and reinsurance regulatory...more
The minutes of the April 4, 2016 task force meeting included the following seven items of activity:
- Adopted its Jan. 6, 2016 and Dec. 9, 2015 minutes (which were attached), which reflected the adoption of revisions to...more
We previously reported on reinsurance litigation in Connecticut federal court between Travelers Indemnity Co. and Excalibur Reinsurance Corp, which the parties settled in May 2014. See prior post dated July 31, 2014. A year...more
Effective January 24, 2016, Maine amended Bureau of Insurance Rule 740, Credit for Reinsurance, in order to implement the newly adopted provision of the Maine Credit-for-Reinsurance Act that allows reduced collateral for...more
The court considered the various privilege assertions of both the insurers (plaintiffs) and the insureds (defendants) in a multi-insurer insurance litigation. In analyzing varying categories of documents, including subsets of...more
On April 24, 2015, the Internal Revenue Service proposed regulations directed to “situations in which a hedge fund establishes a purported foreign reinsurance company in order to defer and reduce the tax that otherwise would...more
A Pennsylvania Court has approved the commutation, settlement and release agreement between Legion Insurance Company (In Liquidation) and Midwest Employers Casualty Company. Legion was judicially determined insolvent in 2003,...more
On November 18, 2014, we reported on the Seventh Circuit’s decision in Pine Top Receivables of Illinois, LLC v. Banco de Seguros del Estado, in which Pine Top claimed that Banco de Seguros owed it $2,352,464.08 under certain...more