Mealey's Reinsurance
-
September 17, 2024
Parties, 10 Amici Weigh In On Economic Substance Doctrine In Microcaptive Case
WASHINGTON, D.C. — Ten amicus curiae briefs regarding the “economic substance doctrine” have been filed at the invitation of a U.S. Tax Court judge who is presiding over consolidated cases involving purported microcaptive insurance companies and considering the remaining issue of accuracy-related penalties.
-
September 17, 2024
SEC Files Rule Compliance Notice In Fraud Suit Against Owner Of Defunct Insurers
WINSTON-SALEM, N.C. — The U.S. Securities and Exchange Commission on Sept. 16 filed a notice of compliance with local rules in a North Carolina federal court regarding its brief responding to a motion to compel discovery filed by insurance magnate Greg Lindberg, a former owner of insurers now in receivership, in a suit alleging that he, his advisory services company and its former executive defrauded clients of more than $75 million.
-
September 17, 2024
Florida Judge Denies Dismissal Bid In Investors’ Fraud Suit Over $65M Deal
ORLANDO, Fla. — Without explanation, a Florida judge denied dismissal of a complaint in which entities that purportedly invested about $65 million in a managing general agent just months before affiliated insurance companies were liquidated allege that they were defrauded.
-
September 17, 2024
Parties In Reinsurance Row Stipulate To Stay While Dispute Is Arbitrated
CHARLESTON, S.C. — Filing a stipulation in South Carolina federal court, parties in a lawsuit involving reinsurance said they agree that having a related dispute decided in an existing arbitration proceeding “would be the most efficient way to proceed,” so the case can be stayed.
-
September 13, 2024
Judge Denies Motion To Reconsider Rehab Plan For Workers’ Comp Insurer
REDWOOD CITY, Calif. — Denying a motion that sought coverage of certain litigation costs for policyholders and a higher interest rate, a California state judge declined to reconsider her ruling approving a rehabilitation plan for California Insurance Co. (CIC), saying she “previously heard and considered these grounds.”
-
September 13, 2024
2 More ERISA Suits Target Companies, State Street Over Pension Risk Transfers
Two more putative class actions are challenging pension risk transfers (PRTs) under the Employee Retirement Income Security Act, bringing the total of PRT cases filed in recent months to at least seven.
-
September 11, 2024
Judge Denies Service-Focused Dismissal Motion In Reinsurance Dispute
DES MOINES, Iowa — Citing a 1998 U.S. Supreme Court decision, an Iowa federal judge denied a service-focused motion to dismiss a dispute over reinsurance reimbursement, ruling that the plaintiffs “have made the necessary prima facie showing of service upon . . . the Defendants’ appointed agent.”
-
September 11, 2024
Arbitration Award Of More Than $11.3M Is Confirmed In Retrocession Case
NEW YORK — Saying that respondent Go Re Inc. hadn’t “put forward any defense, or otherwise appeared in this Action,” a New York federal judge granted a petition to confirm an $11,326,463 arbitration award in a dispute involving a retrocession agreement.
-
September 10, 2024
Petition On Third-Party Subpoena Prehearing Issue Is Voluntarily Dismissed
DETROIT — Two weeks after filing a petition to compel compliance with third-party subpoenas for prehearing discovery depositions, an insurer filed a notice of voluntary dismissal without prejudice and a Michigan federal court accordingly dismissed the suit that concerned a $950,742.64 dispute over a medical excess reinsurance agreement that has gone to arbitration.
-
September 05, 2024
Reinsurer Files Suit Over TPA’s Alleged Mishandling Of Insurance Claims
BILLINGS, Mont. — Seeking declaratory judgment and damages for claims that it alleges were mishandled and misallocated, a Bermuda-based reinsurer sued an insurer and third-party administrator (TPA) in Montana federal court.
-
September 05, 2024
Citing FAA, Insurer Raises Third-Party Subpoena Prehearing Issue In Federal Court
DETROIT — An insurer has petitioned a Michigan federal court to compel compliance with third-party subpoenas for prehearing discovery depositions in a $950,742.64 dispute over a medical excess reinsurance agreement that has gone to arbitration.
-
September 04, 2024
Insurer Gets Reinsurance Breach Of Contract Row That Exceeds $20M Transferred
TAMPA, Fla. — A suit over an alleged reinsurance agreement breach that exceeds $20 million will be transferred to a different federal court “[b]ased on the totality of the circumstances, and in the interest of justice,” a Florida federal judge ruled.
-
September 03, 2024
Reinsurer’s Purchaser Wins Preliminary Injunction In Suit Over Forced Deal
NEW YORK — A New York federal judge on Aug. 30 granted a motion for preliminary injunction in an insurer’s suit over its April 14 purchase of Bermuda-based reinsurer JRG Reinsurance Company Ltd.
-
September 03, 2024
Discovery Issues Derail Summary Judgment Bid In Cleanup Costs Coverage Row
PADUCAH, Ky. — After a report of discovery issues prompted denial of a summary judgment motion without prejudice in a dispute over pollution-related cleanup costs, a Kentucky federal magistrate judge has set new discovery deadlines and given the plaintiff leave to move to compel production.
-
August 30, 2024
Bank Faces Another Negligence, Fraud Suit In Connection With Vesttoo Collapse
NEW YORK — Asserting fraud and negligence claims against China Construction Bank Corp. (CCBC) and related entities, a company affected by the collapse of Vesttoo Ltd. filed suit in New York state court for damages that it says include at least $140 million in cedent premium payments that went into designated segregated accounts.
-
August 30, 2024
Government Wins Dismissal Of Suit Over Microcaptive Reporting Requirement
SALT LAKE CITY — Granting dismissal of a suit challenging a 2016 Internal Revenue Service reporting requirement for microcaptive insurance companies, a Utah federal judge said the Anti-Injunction Act (AIA) and Declaratory Judgment Act (DJA) bar most or all of the relief sought and “the court lacks the ability to award ‘meaningful’ relief” on any claim that might remain.
-
August 29, 2024
N.C. High Court Tosses Insurance Magnate’s Bid For Stay In Receivership Action
RALEIGH, N.C. — Without explanation, the North Carolina Supreme Court on Aug. 28 dismissed a motion for a temporary stay and writ of supersedeas in a judgment creditor’s suit seeking the appointment of a general receiver over the assets of judgment debtor Greg E. Lindberg, a former owner of insurers now in rehabilitation who was convicted of bribing the North Carolina insurance commissioner.
-
August 29, 2024
Production Of Full Funding Agreement Ordered In DUFTA Case Involving Insurer
WILMINGTON, Del. — Saying his relevance conclusion sprang from “the class action context . . . and the express terms of the Funding Agreement itself,” a Delaware Chancery Court vice chancellor ordered the plaintiffs in a suit over an alleged scheme to strip capital from an insurance subsidiary on which many policyholders depend for long-term care (LTC) disability benefits to produce the funding and contingent fee agreements in their entirety.
-
August 27, 2024
Only Direct Claim Survives Dismissal Bids In Lawsuit Over Asbestos Judgment
NEW YORK — Saying that amending those claims would be futile, a New York federal judge granted dismissal of bad faith, negligence and tortious interference claims against an insurer and a third-party claims administrator in a suit over a multimillion-dollar asbestos exposure judgment.
-
August 27, 2024
4th Circuit Upholds Judgment Against Insurance Mogul In $524M Guaranty Case
RICHMOND, Va. — In a brief Aug. 26 unpublished per curiam opinion, a Fourth Circuit U.S. Court of Appeals panel affirmed judgment that enforces an arbitration award for $524 million plus interest against an insurance mogul who issued a guaranty.
-
August 23, 2024
Amicus Deadline On Economic Substance Doctrine Extended In Microcaptive Case
WASHINGTON, D.C. — A U.S. Tax Court judge who ordered supplemental briefing regarding the “economic substance doctrine” in consolidated cases involving purported microcaptive insurance companies and invited amicus curiae briefs “given the novelty of the issues” on Aug. 22 extended the deadline to move for leave to file a brief as amicus to Sept. 6.
-
August 12, 2024
COMMENTARY: Waiver Of The Right To Arbitration Without Prejudice
By Robert M. Hall
-
August 22, 2024
Statutory Reinsurer Urges 7th Circuit To Affirm Dismissal In Preclusion Row
CHICAGO — In an appellee brief asserting in part that the appellant “has yet to provide any justification in law, equity, or logic, why [the appellee] should not be allowed to exercise the same right as the property owner,” a statutory reinsurer urges the Seventh Circuit U.S. Court of Appeals to affirm a dismissal ruling in an interlocutory appeal concerning whether mine subsidence claims are barred by claim and issue preclusion.
-
August 22, 2024
Dismissal Recommendation In Crop Insurance Interpretation Row Draws Objections
SAVANNAH, Ga. — Objecting to a Georgia federal magistrate judge’s recommendation that a crop insurance case be dismissed because it “is simply not at a stage where the Court may properly exercise its jurisdiction,” a farm argues in part that it “has shown that going forward with the arbitration under the cloud of possibly invalid or incorrect or incomplete policy or procedure interpretations will result in a wrong arbitration decision which, under current case law, cannot be challenged.”
-
August 22, 2024
Reinsurer Takes Timely Notice, Other Issues To 5th Circuit In Indemnity Row
NEW ORLEANS — Fighting a $2,866,423.97 judgment that includes attorney fees, a reinsurer told the Fifth Circuit U.S. Court of Appeals that the challenged decision “appears to be the first case to vest virtually unfettered discretion with an insured (or ceding company in this case) to decide when to notify its insurer (or reinsurer) of a claim.”