Mealey's Reinsurance
-
November 14, 2024
Government Files Counterclaim In Suit Over Captive Insurance Program, Penalties
PITTSBURGH — In a text-only order, a Pennsylvania federal judge removed the Internal Revenue Service from the caption of a dispute over a suit over penalties resulting from that agency’s decision that a Pittsburgh-based corporation’s involvement with a purported captive insurance program constituted tax shelter promotion; additionally, the government has moved to dismiss or strike a laches claim and asserted a counterclaim.
-
November 13, 2024
Guilty Plea Entered In Insurance Magnate’s $2B Money Laundering, Conspiracy Case
CHARLOTTE, N.C. — Insurance magnate Greg Lindberg, the former owner of now-insolvent insurers, pleaded guilty Nov. 12 in a North Carolina federal court to money laundering conspiracy and conspiracy regarding his $2 billion scheme to defraud insurers and policyholders by funneling money through his extensive global network of insurance companies and holding companies.
-
November 13, 2024
Amicus Bid Is Contested In 6th Circuit Appeal Of Collateral Estoppel Ruling
CINCINNATI — A request for permission to file an amicus curiae brief in the Sixth Circuit U.S. Court of Appeals has drawn a reinsurer’s opposition in the appeal of a ruling that collateral estoppel applies to a defense costs dispute concerning asbestos lawsuits and prior arbitration.
-
November 13, 2024
Restrictions Granted In Asbestos Coverage Dispute Involving Liquidated Insurer
OMAHA, Neb. — In docket-only orders, a Nebraska federal magistrate judge granted motions to restrict access to certain documents by National Indemnity Co. (NICO) and Horace Mann Insurance Co., including briefs related to summary judgment motions, in NICO’s 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.
-
November 13, 2024
Farmer’s Suit Against Crop Insurer Is Stayed Pending FCIC Determination
WINSTON-SALEM, N.C. — A North Carolina federal magistrate judge who previously ruled that a Federal Crop Insurance Corp. (FCIC) “determination requirement applies to all claims seeking extracontractual damages related to a federally reinsured crop insurance policy” on Nov. 12 granted a farmer’s unopposed request to stay rather than dismiss the case while he pursues that determination.
-
November 12, 2024
Magistrate Would Side With Reinsurer In Heart Transplant Reimbursement Row
GALVESTON, Texas — Concluding that a reinsurer doesn’t owe the plaintiff insurer “anything” in a health maintenance organization (HMO) dispute regarding heart transplant reimbursement, a Texas federal magistrate judge recommended granting part of the reinsurer’s summary judgment motion.
-
November 12, 2024
Group Outlines Dismissal Arguments In Another Reinsurer’s RICO Lawsuit
BROOKLYN, N.Y. — As it has done in a similar Racketeer Influenced and Corrupt Organizations (RICO) Act suit that a different reinsurer filed in New York federal court over purportedly fraudulent workers’ compensation claims and personal injury lawsuits, a group of defendants filed a pre-motion letter outlining plans to seek dismissal.
-
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.”