Mealey's Reinsurance
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January 09, 2025
Vice Chancellor Addresses Privilege Claims In DUFTA Case Discovery Dispute
WILMINGTON, Del. — A Delaware Chancery Court vice chancellor ordered plaintiffs to produce some documents they had argued were privileged and to pay for additional depositions in a putative class suit over an alleged scheme to strip capital from an insurance subsidiary on which many policyholders depend for long-term care (LTC) disability benefits.
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January 08, 2025
Liquidation, Injunction Orders Entered For 2 Special Purpose Captive Insurers
WILMINGTON, Del. — A Delaware Chancery Court vice chancellor on Jan. 7 entered liquidation and injunction orders regarding two special purpose captive insurance companies — American Casualty Reinsurance of Delaware LLC (ACRE) and American Equine Insurance Company LLC (AEIC) — that the Delaware Department of Insurance seized in June 2024 under confidential orders.
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January 07, 2025
Judge Sets Aside Deadlines During Discovery In Breach Suit Against Ex-Underwriter
MIAMI — After an insurer asked to extend deadlines for reasons including that recent discovery “has revealed the broad scope of [its former underwriter]’s years-long, transnational scheme” that allegedly exposed it “to over $100 million in claims,” a Florida federal judge entered an order setting aside the deadlines while discovery continues.
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January 06, 2025
Some Defendants Reach Undisclosed Settlement In Jet Coverage Lawsuit
SAN FRANCISCO — A few defendants have been dismissed with prejudice from an international aviation insurance coverage dispute involving Russia’s invasion of Ukraine pursuant to a confidential settlement approved by a California state court judge.
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January 06, 2025
Citing Wildfire Risks, California Issues Net Cost Of Reinsurance Regulation
SACRAMENTO, Calif. — The California Department of Insurance has issued a Net Cost of Reinsurance (NCOR) in Ratemaking Regulationthat Commissioner Ricardo Lara says was prompted by insurers pulling back from the state’s property insurance market in light of the growing risk of wildfires.
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January 03, 2025
Settlement, Recapture Proposed Involving Reinsurer That Is In Liquidation
WILMINGTON, Del. — The Delaware Chancery Court has been asked to approve a deal involving settlement and recapture agreements under which stock reinsurance company Scottish Re (U.S.) Inc. (SRUS), which is in liquidation, would receive a recapture payment of $86,210,609.56.
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January 02, 2025
Intervention Sought Over Setoff Rights In Connecticut Rehabilitation Proceeding
HARTFORD, Conn. — Policy owners’ setoff rights are the focus of an intervention motion that three investment managers filed in Connecticut state court regarding the rehabilitation of life insurer PHL Variable Insurance Co. and the subsidiaries that reinsure its liabilities.
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January 02, 2025
Dismissal Bid Fails In Reinsurer’s Breach Of Contract Lawsuit Because Of Term
TAMPA, Fla. — Saying in part that the key contractual term “is arguably facially ambiguous,” an Illinois federal judge denied a motion to dismiss a reinsurer’s breach of contract suit and then stayed the case through Feb. 3 at the parties’ request “to permit them to try to resolve the case by agreement.”
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January 02, 2025
Pension Risk Transfer To Prudential Is Focus Of ERISA Lawsuit
NEW YORK — The wave of Employee Retirement Income Security Act suits challenging pension risk transfers (PRTs) has taken a turn with the filing of a complaint in New York federal court that focuses on transfers to Prudential Insurance Company of America (PICA) and RGA Reinsurance Company (RGA).
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January 02, 2025
Crop Insurance Case Over Regulatory Actions Is Tossed For Lack Of Jurisdiction
SAVANNAH, Ga. — Saying that arguing that a flawed arbitration decision likely isn’t enough to meet the plaintiff’s burden in the crop insurance case, a Georgia federal judge concluded that a farm hasn’t shown that it has standing or that its claims are ripe; he therefore overruled the farm’s objections and dismissed the case.
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December 31, 2024
IRS Asks 5th Circuit To Affirm Tax Court Ruling In Row Over Purported Microcaptives
NEW ORLEANS — Urging the Fifth Circuit U.S. Circuit Court of Appeals to affirm a ruling that certain purported microcaptive insurance arrangements were not entitled to federal tax benefits, the U.S. commissioner of Internal Revenue argues in part that the “Taxpayer can hardly claim reversible error or fault the Tax Court for applying a legal framework that Taxpayer himself advocated.”
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December 30, 2024
Exchange Act’s Antifraud Provisions Applied In Suit Against Former Brazilian Exec
NEW YORK — Ruling that a July 2010 amendment to the Securities Exchange Act of 1934 (Exchange Act) means that the act’s “antifraud provisions apply to extraterritorial conduct that is the subject of an enforcement action” by the U.S. Securities and Exchange Commission, a New York federal judge denied a motion to dismiss an enforcement action against the former senior executive of a Brazilian reinsurance company.
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December 30, 2024
5th Circuit Argument Set In Reinsurer’s Appeal Involving Timely Notice
NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals has set oral argument for Feb. 5 in a reinsurer’s appeal of a $2,866,423.97 judgment that includes attorney fees; a key issue in the case is whether the reinsurer was given timely notice.
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December 24, 2024
Tax Court Briefing On Economic Substance Doctrine Continues In Microcaptive Case
WASHINGTON, D.C. — In their latest filings in a U.S. Tax Court dispute over the “economic substance doctrine” in consolidated cases involving purported microcaptive insurance companies, the commissioner of Internal Revenue argues that a “threshold” determination of relevance is not required and the petitioners contend that the bulk of the amicus curiae briefs support their contrary position, among other things.
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December 19, 2024
5th Circuit Appeal Seeks Revival Of Untimely Crop Insurance Case
NEW ORLEANS — Briefing has concluded in an appeal concerning federally reinsured crop insurance, the Federal Arbitration Act (FAA), statutes of limitations, tolling and estoppel, and the Fifth Circuit U.S. Court of Appeals has tentatively calendared oral argument for the week of Feb. 3.
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December 19, 2024
Redacted Complaint Is Filed In Indemnification Row Over Clash Reinsurance
NEW YORK — A reinsurer that seeks a declaration that it doesn’t have a duty to indemnify an insurer that settled claims stemming from alleged sexual abuse of female athletes by Larry Nassar and others has filed a redacted complaint in New York federal court.
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December 18, 2024
Tax Court Ruling In Row Over Purported Microcaptive Is Appealed To 10th Circuit
DENVER — For at least the second time this year, plaintiffs who unsuccessfully sued the commissioner of Internal Revenue in U.S. Tax Court over purported microcaptive insurance have filed an appeal; this one is in the 10th Circuit U.S. Court of Appeals.
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December 18, 2024
2 Investors Want To Pursue Resolution With Vesttoo Affiliate In Israel
WILMINGTON, Del. — Two Israeli investors have asked a Delaware federal bankruptcy court for relief from the injunction in the Chapter 11 liquidation of Vesttoo Ltd. and its dozens of affiliates so they can pursue arbitration and/or liquidation proceedings in Israel.
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December 17, 2024
Judge Stays Discovery In Lawsuit Over Alleged Workers’ Comp Scheme
BROOKLYN, N.Y. — A New York federal judge has stayed discovery pending resolution of expected dismissal motions in a Racketeer Influenced and Corrupt Organizations Act (RICO) lawsuit where a reinsurer and management general agency allege that the defendants took part in purportedly fraudulent workers’ compensation claims and personal injury lawsuits.
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December 16, 2024
U.K. Insurer Wins Stay Of Arbitration In Reinsurance Billings Dispute
NEW YORK — Saying in part that the U.S.-based defendant didn’t show “by a preponderance of the evidence that an agreement to arbitrate exists between the parties,” a New York federal judge cited “New York state law” in granting a U.K.-based insurer’s petition to stay arbitration.
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December 13, 2024
Hawaii Supreme Court Considers Subrogation Issues For Wildfire Settlement
HONOLULU — How the subrogation rights of property and casualty insurance carriers bear on a proposed global settlement of claims related to the August 2023 Maui wildfires is the focus of three reserved questions the Hawaii Supreme Court is considering, with some recent filings involving how reinsurance could be affected.
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December 12, 2024
Insurer Seeks Summary Judgment Argument In Asbestos Coverage Row
OMAHA, Neb. — National Indemnity Co. (NICO) has moved in Nebraska federal court for oral argument on pending motions for partial summary judgment in its suit to enforce obligations by defendants it calls reinsurers — one of whom is now insolvent — for liability NICO incurred related to claims for asbestos exposure.
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December 11, 2024
2nd Circuit Sets Argument In Reinsurers’ Post-Trial Appeal Of Oil Seizure Row
NEW YORK — Oral argument has been calendared for Jan. 24 in a Second Circuit U.S. Court of Appeals case filed by reinsurers that were ordered to pay CITGO Petroleum Corp. more than $72.5 million in a suit stemming from the February 2020 seizure of crude oil at a Venezuelan port and involving a marine cargo reinsurance policy and what constitutes an “insurrection.”
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December 10, 2024
Health Plans Seek Revival Of 12 Cases In ACA Reinsurance Dispute
WASHINGTON, D.C. — Arguing in part that “the well-established rule for suspending the running of statutes of limitation in class actions for putative class members” remains available in what are called “Tucker Act” cases, group health plans on Dec. 9 asked the Federal Circuit U.S. Court of Appeals to reverse a ruling that their 12 consolidated cases against the government were untimely.
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December 10, 2024
Bank, Related Entities Face Another Suit Connected To Vesttoo Collapse
NEW YORK — China Construction Bank Corp. (CCBC) and related entities are facing yet another lawsuit in connection with the collapse of Vesttoo Ltd., with plaintiffs asserting breach of contract and alternative claims in New York federal court.