- Volume 29, Issue #4
- Panel: Reinsurers Have Burden To Show Impartiality In Insolvent Insurer's Award
NEW YORK - In a reinsurance dispute between an insolvent insurer and underwriters, the Second Circuit U.S. Court of Appeals held June 7 that a party seeking to vacate an award "must sustain a higher burden to prove evident partiality on the part of an arbitrator who is appointed by a party and who is expected to espouse the view or perspective of the appointing party" (Certain Underwriting Members of Lloyds of London, et al. v. Florida, et al., No. 17-1137, 2nd Cir., 2018 U.S. App. LEXIS 15377).
- Landscaper: Reinsurer's Service Of Suit Over Arbitration Award Was Defective
LOS ANGELES - A landscape company says in its June 10 reply brief to a California federal court that service of suit was defective regarding a reinsurer's petition seeking confirmation of a $82,130.44 arbitration award (Applied Underwriters Captive Risk Assurance Company Inc. v. O'Connell Landscape Maintenance Inc., No. 18-00683, C.D. Calif.).
- Insurer Seeks Appeal Of $50M Arbitration Ruling Against Reinsurance Executive
NEW YORK - A life insurer argues in its June 4 reply brief that a New York federal court should certify for interlocutory appeal a ruling forcing a $50 million Racketeer Influenced and Corrupt Organizations Act lawsuit against a reinsurance executive and others to be arbitrated (Bankers Conseco Life Insurance Co., et al. v. Moshe M. Feuer, et al., No. 16-7646, S.D. N.Y.).
- Panel Reverses Judgment On Rebates For Farming Co-Op In Reinsurance Years
CINCINNATI - Finding that a government agency's interpretation is foreclosed by statute, the Sixth Circuit U.S. Court of Appeals on June 4 reversed a determination that a farming cooperative lost its status as an entity approved to make premium-rebate payments for 2005, 2006 or 2007 reinsurance years after its merger with a nongrandfathered cooperative (Sunrise Cooperative Inc. v. U.S. Department of Agriculture, et al., No. 17-3807, 6th Cir., 2018 U.S. App. LEXIS 14721).
- Judge Refuses To Reinstate Claims Against Crop Insurers, Federal Agency Reinsurers
DETROIT - Finding no identified palpable error in a prior ruling, a Michigan federal judge on June 1 declined to reinstate indemnity claims brought by a putative class of farmers against crop insurers and the federal agencies that reinsure the policies (Gregory Ackerman, et al. v. U.S. Department of Agriculture, et al., No. 17-11779, E.D. Mich., 2018 U.S. Dist. LEXIS 93707).
- 4th Circuit: Farm's Claims Against Insurers Preempted By Crop Insurance Act
RICHMOND, Va. - There was no error in the dismissal of North Carolina state law claims against insurers because they are barred by an arbitrator's finding that a farm did not timely commence arbitration required by insurance policies and preempted by the Federal Crop Insurance Act (FCIA), the Fourth Circuit U.S. Court of Appeals ruled June 13 (J.O.C. Farms LLC v. Fireman's Fund Insurance Co., et al., No. 15-2368, 4th Cir., 2018 U.S. App. LEXIS 15853).
- Magistrate Judge Finds Dismissal Of Reinsurers' RICO Lawsuit Appropriate
EL PASO, Texas - In a case alleging a scheme to take control over an auto dealership and to decline selling vehicle-protection products that are reinsured, a Texas federal magistrate judge on June 11 recommended that a federal civil Racketeer Influenced and Corrupt Organizations Act claim be dismissed (Richard C. Poe II, et al. v. Anthony E. Bock, et al., No. 17-00232, W.D. Texas).
- Judge Denies Protective Order On Reinsurance Info In Insurance Insolvency Case
ST. LOUIS - In a dispute over the mishandling of funds belonging to insolvent funeral insurers, a Missouri federal judge on June 8 denied a special deputy receiver's motion for protective order as to documents and communications relating to any assumption reinsurance agreements (Jo Ann Howard & Associates P.C., et al. v. J. Douglas Cassity, et al., No. 09-01252, E.D. Mo., 2018 U.S. Dist. LEXIS 96627).
- Insurer: Jurisdiction Exists In Breach Of Contract Case Against Reinsurers
BRIDGEPORT, Conn. - Opposing a motion to dismiss, an insurer argues in a May 25 brief that a Connecticut federal court has personal jurisdiction over its breach of contract case against reinsurers regarding an asbestos claims settlement because the risk is located in the state (Travelers Casualty and Surety Co. v. Nationwide Mutual Insurance Co., et al., No. 18-00088, D. Conn.).
- Life Insurer, Investor Seek Pre-Motion Conference On Dismissal Of Class Action
NEW YORK - A life insurer and a private investment firm wrote a New York federal court on June 8 requesting a pre-motion conference on a motion to dismiss a class action alleging breach of policies by the unlawful increase of the premium costs to recoup costs associated with the acquisition (Derek Fan, et al. v. Phoenix Life Insurance Co., et al., No. 18-01288, S.D. N.Y.).
- Judge Certifies Question In Bad Faith Suit Against Insurer, Claims Administrator
SIOUX CITY, Iowa - In a dispute against an employer's workers' compensation insurer and a third-party claims administrator, an Iowa federal judge on June 13 declined to dismiss bad faith claims and instead certified a question to the Iowa Supreme Court (Samuel De Dios v. Indemnity Insurance Company of North America, et al., No. 18-4015, N.D. Iowa, 2018 U.S. Dist. LEXIS 98833).
- Parties Settle Dispute Over Insurer's Failure To Reimburse After Reinsurance Applied
MINNEAPOLIS - Parties have written a letter to a Minnesota federal magistrate judge on June 8 advising that they have settled a breach of contract lawsuit arising from an insurer's alleged failure to reimburse unpaid defense costs in a settlement of an underlying workers' compensation claim after reinsurance initially provided coverage (Berkley Risk Administrators Co. LLC, et al. v. National Union Fire Insurance Company of Pittsburgh, PA, No. 17-04765, D. Minn.).
- Reinsurer, Insurer File Trial Briefs In $3.2M Asbestos Claims Dispute
SYRACUSE, N.Y. - A reinsurer and an insurer filed trial briefs June 5 with a New York federal court in a dispute over whether the reinsurer is obligated to pay $3.2 million in reinsurance proceeds for the insurer's defense expenses from an asbestos claims settlement (Utica Mutual Insurance Co. v. Munich Reinsurance America Inc., Nos. 12-00196 & 13-00743, N.D. N.Y.).
- Insurer Opposes Bank's Motion To Compel Documents In Reinsurance Handling Suit
COLUMBIA, S.C. - In a South Carolina federal court dispute involving a bank sued for its role as trustee of a reinsurance trust for an insolvent insurer, an insurer in a June 7 filing opposes the bank's motion to compel the identity and production of documents related to damages (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).
- Judge Extends Trial Date In Criminal Case Over False Reinsured Crop Losses
LEXINGTON, Ky. - In a criminal proceeding against a farmer for making false statements for federally reinsured crops, a Kentucky federal judge on June 6 granted a motion to continue trial until Jan. 8 (United States v. Ronnie Jolly, No. 18-cr-32, E.D. Ky.).
- Farmers Indicted On False Claims For Reinsured Crop Insurance Program
LEXINGTON, Ky. - Farmers defrauded the United States through the filing of false insurance claims reimbursed by the U.S. Department of Agriculture (USDA) and by making false statements and reports in connection with the federally reinsured crop insurance program, the government alleges in a June 6 indictment filed in a Kentucky federal court (United States v. Bradley Price, et al., No. 18-cr-60, E.D. Ky.).
- Stockholder: GE's Directors Mismanaged Reinsurance Of Long-Term Care Policies
NEW YORK - A stockholder filed a complaint on May 30 against directors and officers of General Electric Co. (GE), alleging that their actions forced GE to retain and reinsure the worst blocks of long-term care (LTC) insurance policies (Henry Zwang v. Jeffrey R. Immelt, et al., No. 18-04746, S.D. N.Y.).
- Judge Orders Recovery By U.S. Government On Reinsured Student Loans
MIAMI - Finding no genuine issue of material fact, a Florida federal judge on June 5 ordered a woman to pay $8,903.36 plus interest to the U.S. government for reinsured student loans (United States v. Tracey Ann Limato, No. 17-14439, S.D. Fla., 2018 U.S. Dist. LEXIS 96055).