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Reinsurer Argues To New York High Court For Cap Of Defense Costs In Asbestos Suit
NEW YORK - Reinsurance certificates should be interpreted according to their plain language requiring "all reinsurance 'subject to' the amount of liability and subordinating the follow-the-form clause to the certificates' specific terms," a reinsurer argues in a brief filed June 27 in the New York Court of Appeals, saying that its liability for defending and indemnifying asbestos litigation is capped (Global Reinsurance Corporation of America v. Century Indemnity Co., No. CTQ-2016, 0005, N.Y. App.).



1st Circuit Upholds Ruling Denying Arbitration Of Reinsurance Agreement
BOSTON - An arbitrator did not disregard the law when deciding that arbitration is banned for a breach of contract dispute under a reinsurance participation agreement regardless of the parties' intent to arbitrate, the First Circuit U.S. Court of Appeals held July 13, affirming the denial of a motion to vacate the arbitrator's decision (Mountain Valley Property Inc. v. Applied Risk Services Inc., et al., No. 16-2189, 1st Cir., 2017 U.S. App. LEXIS 12575).



Judge Denies Reconsideration Of Confirmation Of Arbitration Award In Reinsurance Suit
BRIDGEPORT, Conn. - Refusing to reconsider the confirmation of a clarified arbitration award that requires a reinsurer to pay up to an additional $18 million in reinsurance proceeds to an insurer, a Connecticut federal judge on July 18 held that he lacked the authority to issue a judgment for a sum certain (General Re Life Corp. v. Lincoln National Life Insurance Co., No. 15-cv-01860, D. Conn.).



Federal Bankruptcy Judge Strikes Foreign Specialty Reinsurer's $15M Bond
NEW YORK - A foreign specialty reinsurer must post a new $15 million bond as part of its attempt to arbitrate a coverage dispute in Bermuda, a New York federal bankruptcy judge ruled July 17, granting a defunct brokerage company's motion to strike the current bond as defective (In re: MF Global Holdings Ltd., et al., MF Global Holdings Ltd. as plan administrator, and MF Global Assigned Assets LLC v. Allied World Assurance Company Ltd., et al., Chapter 11 No. 11-15059, Adv. Proc. No. 16-01251, S.D. N.Y. Bkcy.).



Reinsurer Declines To Oppose Insured's Motion To Intervene In Dispute Over $5M Claim
NEW YORK - A Brazilian reinsurer told a New York federal court on July 14 that it will not oppose a steel maker's request to intervene in an insurer's lawsuit seeking to require the reinsurer to cover a $5 million settlement with the insured under an arbitration award (National Indemnity Co. v. IRB Brasil Resseguros S.A., No. 15-3975, S.D. N.Y.).



Judge Dismisses Breach Of Contract Suit By Rehabilitator Against Mortgage Reinsurer
CHICAGO - An Illinois federal judge on July 5 dismissed a rehabilitator's lawsuit accusing a reinsurer of breaching its contract with an insolvent mortgage insurance provider by failing to disclose the benefits it derived from a captive reinsurance arrangement because the contract did not impose such a requirement (People of the state of Illinois, ex rel., Acting Director of Insurance, Jennifer Hammer v. Twin Rivers Insurance Co. f/k/a Cherokee Insurance Co., No. 16-7371, N.D. Ill., 2017 U.S. Dist. LEXIS 103833).



Judge Denies Reinsurer's Bid For Amendment In Federal Crop Insurance Suit
WASHINGTON, D.C. - A federal judge in the District of Columbia on June 7 denied a reinsurer's request to amend its complaint against the Federal Crop Insurance Corp. (FCIC) in a reinsurance dispute because the reinsurer untimely filed its motion (ACE American Insurance Co., et al. v. Federal Crop Insurance Corp., et al., No. 14-1992, D. D.C.).



Insured Reaches Settlement With Insurer, Reinsurer In Business Interruption Suit
PITTSBURGH - A glass manufacturer insured, an insurer and a reinsurer have agreed to settle a coverage dispute over property damage and business interruption losses arising from the insured's equipment breakdown, according to a Pennsylvania federal judge's June 7 order (Hartford Steam Boiler Inspection and Insurance Co., et al. v. International Glass Products LLC, et al., No. 08-1564, W.D. Pa.; 2016 U.S. Dist. LEXIS 135045).



Judge Denies Compelling Production Of Communications Of Reinsurance Transactions
OWENSBORO, Ky. - A Kentucky federal judge on July 7 denied the government's motion to compel production of all communications in revised privilege logs submitted by an insurer and its insureds concerning taxable years for insurance and reinsurance transactions (United States of America v. Owensboro Dermatology Associates P.S.C., No. 16-00003, United States of America v. Dermatology Property Management LLC, No. 16-00004, United States of America v. Beveled Edge Insurance Co., No. 16-00005, W.D. Ky., 2017 U.S. Dist. LEXIS 105099).



Reinsurer Seeks Discovery Sanctions In Dispute Over Promissory Note With Insurer
LINCOLN, Neb. - An insurer failed to comply with an order requiring complete answers to interrogatories in a dispute concerning sums allegedly owed under a promissory note executed in connection with a reinsurance participation agreement, a reinsurer argues to a Nebraska federal court in a July 12 brief (Applied Underwriters Inc. v. Top's Personnel Inc., No. 15CV90, D. Neb.).



Reinsurer Opposes Insurer's Motion For Protective Order In Breach Of Contract Suit
PHILADELPHIA - In a breach of contract suit, a reinsurer says in a June 29 filing that a Pennsylvania federal court should deny an insurer's request for a protective order precluding witnesses from testifying to historical reserves and information concerning other reinsurers of asbestos claims (R&Q Reinsurance Co. v. St. Paul Fire & Marine Insurance Co., No. 16-cv-01473, E.D. Pa.).



Reinsurer, Insurer's Late Notice Dispute Set For Trial In Federal Court
UTICA, N.Y. - A reinsurer and insurer's dispute over reinsurance concerning an underlying $325 million settlement of asbestos claims against an insured has been scheduled for trial on Nov. 13 (Utica Mutual Insurance Co. v. Fireman's Fund Insurance Co., No. 09-cv-00853, N.D. N.Y.).



Judge Stays $5M Lawsuit Pending Insurer's Review Of Reinsurer's Brazilian Suit
NEW YORK - A New York federal judge on July 5 stayed an insurer's proceeding seeking to enforce confirmation of an arbitration award that requires a reinsurer to cover a $5 million settlement with a steel maker, finding that the reinsurer has filed a lawsuit against the insurer in a Brazilian court (National Indemnity Co. v. IRB Brasil Resseguros S.A., No. 15-3975, S.D. N.Y.).



Reliance Liquidator Seeks Approval Of Reinsurance Direct Payment To Insured
HARRISBURG, Pa. - The liquidator of Reliance Insurance Co. in a July 5 application seeks the approval of on a Pennsylvania court for a direct payment of reinsurance by an reinsurer to an insured (In re: Reliance Insurance Co. in Liquidation, No. 1 REL 2001, Pa. Cmwlth.).



Discoverability Of Communications With Reinsurers In Bad Faith Cases
By Robert M. Hall I. Introduction When insureds allege bad faith on the part of their insurers, they often seek broad discovery in an attempt to prove their cases. Aside from discovery of reinsurance agreements, which generally is allowed, these efforts can include communications between a ceding insurer and its reinsurer(s) in the hopes of finding a smoking gun. Unsurprisingly, the cases are split on this issue but perhaps the more significant point to be learned from an examination of the selected case law reviewed below is that the outcome of the an effort to obtain such communications can depend on the focus of the request as well as a nuanced response.



Judge: Insurer Did Not Act In Bad Faith In Delegating Employer Trust To Reinsurer
CHICAGO - A contract placed no limits on an insurer's discretion to assign its responsibility to an employer's trust and contained no requirements for disclosure of any assignments, an Illinois federal judge ruled July 5, finding that the insurer did not act in bad faith when it delegated to a reinsurer (Midco International Inc. and Employees Profit Sharing Trust v. Metropolitan Life Insurance Co., No. 14-9470, N.D. Ill., 2017 U.S. Dist. LEXIS 103296).



Panel: Reinsurers Need To File Own Complaint As To Legal Malpractice Lawsuit
CHICAGO - An Illinois statute required a surety's reinsurers and insurer to file a complaint against an attorney in their own name, or by the surety "for the use of" the reinsurers and the insurer, an Illinois appeals panel ruled June 30, dismissing a surety's legal malpractice lawsuit (Developers Surety and Indemnity Co. and Insco Insurance Services Inc. v. Marc S. Lipinski, et al., No. 1-15-2658, Ill. App., 1st Dist., 2nd Div., 2017 Ill. App. Unpub. LEXIS 1360).



Judge Dismisses Insurer, Reinsurer's Negligence Suit For Lack Of Jurisdiction
SCRANTON, Pa. - An insured's presence destroys complete diversity jurisdiction in a negligence lawsuit also involving its subrogated insurer and reinsurer, a Pennsylvania federal judge ruled June 20, dismissing the lawsuit because it cannot proceed without the insured (RAD Manufacturing LLC f/k/a RAD Wood Work Co., et al. v. Advanced Fabrication Services Inc. t/d/b/a AFS Energy Systems, No. 16-2138, M.D. Pa., 2017 U.S. Dist. LEXIS 94575).



New York Appeals Panel: Reinsurer's Loan Was Not A Fraudulent Conveyance
NEW YORK - A reinsurer's loan was not a fraudulent conveyance because a loan advance, regardless of the size of the collateral pledged, is "fair consideration" for the pledge, the First Department New York Supreme Court Appellate Division ruled June 20 (Stillwater Liquidating LLC v. Partner Reinsurance Company Ltd., et al., No. 4339 652451/15, N.Y. Sup., App. Div., 1st Dept., 2017 N.Y. App. Div. LEXIS 4965).



Judge Denies Specialty Reinsurer's Leave To Appeal Preliminary Injunction Order
NEW YORK - A New York federal judge on June 29 denied leave for a foreign specialty reinsurance company to appeal a preliminary injunction order and contempt order issued in a bankruptcy court in a coverage dispute with its insured (MF Global Holdings Ltd., as plan administrator, and MF Global Assigned Assets LLC v. Allied World Assurance Co. Ltd., et al., Nos. 17-742 & 17-953, S.D. N.Y., 2017 U.S. Dist. LEXIS 101293).



Brazilian Reinsurer Says It Is Not Responsible For $5M Arbitration Award
NEW YORK - In its June 27 sur-reply, a Brazilian reinsurer tells a New York federal court that it has no duty to pay $5 million under an arbitration award to cover an insurer's settlement with a steel maker in a related dispute because the settlement removed the reinsurer's obligation to pay up (National Indemnity Co. v. IRB Brasil Resseguros S.A., No. 15-3975, S.D. N.Y.).



Insurer Opposes Umpire In Reinsurance Arbitration Dispute With Syndicates
BOSTON - In a dispute over environmental claims, an insurer argues in a June 21 brief filed in a Massachusetts federal court that it should not be forced to accept an umpire proposed by a group of insurance syndicates in arbitration because of "shenanigans" in the appointment process (Certain Underwriters at Lloyd's, London v. Transport Insurance Co., No. 17-10618, D. Mass.).



Arbitrator Should Decide Reinsurance Dispute, Insurer Asserts To Federal Court
MONTGOMERY, Ala. - An arbitrator should decide whether a reinsurer breached a reinsurance treaty by not paying an insurer's claim following an underlying $1.3 million settlement, the insurer argues to an Alabama federal court in its June 15 reply brief (Alabama Municipal Insurance Corp. v. Munich Reinsurance America Inc., No. 16-cv-00948, M.D. Ala.).



Specialty Reinsurance Company Posts $15M Bond In Order To Pursue Arbitration Bid
NEW YORK - A foreign specialty reinsurance company told a New York federal bankruptcy court on June 26 that it posted a $15 million bond, which was required before the court's consideration of a request to arbitrate a coverage dispute against a defunct brokerage company in Bermuda (In re: MF Global Holdings Ltd., et al. MF Global Holdings Ltd. as plan administrator, and MF Global Assigned Assets LLC v. Allied World Assurance Company Ltd., et al., Chapter 11 No. 11-15059, Adv. Proc. No. 16-01251, S.D. N.Y. Bkcy.).



Reinsurer Notes Insurer's Inaccuracies, Seeks Discovery Ruling Reconsideration
SYRACUSE, N.Y. - Noting that an insurer's opposition is "riddled with inaccuracies," a reinsurer argues in its June 26 reply brief that a New York federal court should reconsider a discovery ruling in a dispute over asbestos claims or compel the insurer to produce all post-complaint, internal documents involving coverage issues relating to primary and umbrella policies (Utica Mutual Insurance Co. v. R&Q Reinsurance Co., No. 15-cv-270, N.D. N.Y.).



Reinsurer Seeks Trial Date Move By Federal Court In Late-Notice Dispute
UTICA, N.Y. - After an insurer opposed a previous request to move a trial date in a reinsurance late-notice dispute, a reinsurer on June 19 asked a New York federal court to push back the date, this time to after Nov. 10, explaining that all witnesses will be available after that date (Utica Mutual Insurance Co. v. Fireman's Fund Insurance Co., No. 09-cv-00853, N.D. N.Y.).



Insurer Seeks Discovery Sanctions Against Bank In Reinsurance Dispute
COLUMBIA, S.C. - In a heavily redacted June 19 motion, an insurer asks a South Carolina federal court to impose discovery sanctions on a bank accused of mishandling reinsurance funds because the bank has failed to preserve relevant evidence (Companion Property and Casualty Insurance Co. n/k/a Sussex Insurance Co. v. U.S. Bank National Association v. Redwood Reinsurance Spc. Ltd., et al., No. 15-01300, D. S.C., 2017 U.S. Dist. LEXIS 54182).



Insurer Seeks Protective Order Against Reinsurer In Breach Of Contract Suit
PHILADELPHIA - In a breach of contract dispute, an insurer argues in a June 15 motion that a Pennsylvania federal court should not grant a reinsurer's request to compel the insurer to produce all documents it redacted and, alternatively, should grant a protective order barring the reinsurer from asking questions at depositions about the insurer's reserves and its other reinsurers (R&Q Reinsurance Co. v. St. Paul Fire & Marine Insurance Co., No. 16-cv-01473, E.D. Pa.).



Reinsurance Executives Ask For $50M RICO Suit To Be Sent To Arbitration
NEW YORK - Three reinsurance executives on June 15 requested that a New York federal court send a $50 million Racketeer Influenced and Corrupt Organizations Act case against them to arbitration, arguing that the arbitration clause in the reinsurance agreement applies to them as well as their company (Bankers Conseco Life Insurance Co. and Washington National Life Insurance Co. v. Moshe M. Feuer, et al., No. 16-7646, S.D. N.Y.).



Judge: Foreign Specialty Reinsurance Must Pay $926,000 In Attorney Fees
NEW YORK - A New York federal bankruptcy judge ruled June 22 that a foreign specialty reinsurance company owes a defunct company $926,000 in attorney fees for its failure to get court permission before filing an action to arbitrate a contract dispute in Bermuda (In re: MF Global Holdings Ltd., et al. MF Global Holdings Ltd. as plan administrator, and MF Global Assigned Assets LLC v. Allied World Assurance Company Ltd., et al., Chapter 11 No. 11-15059, Adv. Proc. No. 16-01251, S.D. N.Y. Bkcy., 2017 Bankr. LEXIS 1585).



Panel Denies Rehearing Of Ruling On Joint Reinsurance Association's Duty To Costs
SAN FRANCISCO - Denying a petition for rehearing, a California appeals panel on June 14 upheld its earlier ruling that an insurance industry placement facility and joint reinsurance association is obligated by California Insurance Code Section 2051 to pay the costs to repair an insured's home, less depreciation, even if the amount exceeds the fair market value of her home (California Fair Plan Association v. Marlene Garnes, No. A143190, Calif. App., 1st Dist., Div. 2, 2017 Cal. App. LEXIS 552).



Reinsurer, Insurer Settle $6.2M Breach Of Contract Dispute Over Asbestos Claims
NEW HAVEN, Conn. - A reinsurer and insurer have resolved their $6.2 million reinsurance dispute involving a settlement of underlying asbestos claims, according to a June 20 status report filed in a Connecticut federal court (Travelers Casualty and Surety Co., f/k/a The Aetna Casualty and Surety Co. v. Century Indemnity Co. as successor to Insurance Company of North America, No. 16-cv-170, D. Conn.).



Judge Approves Final Extension On Settlement Negotiations In $9.3M Reinsurance Dispute
NEW YORK - A federal judge in New York on June 12 agreed to extend the deadline for filing summary judgment motions a third and final time in a $9.3 million reinsurance fraud action so that the parties can continue settlement discussions (AmTrust North America Inc., et al. v. Safebuilt Insurance Services, Inc., et al., No. 14-cv-9494, S.D. N.Y.).



Judge Dismisses Insolvent Insurers' Breach Claims In Mortgage Reinsurance Suit
CHICAGO - An Illinois federal judge on June 1 dismissed breach of contract and breach of the implied covenant of good faith and fair dealing claims brought by the rehabilitator of two insolvent insurers against a mortgage insurance reinsurer and a bank (People of the State of Illinois, ex rel., Anne Melissa Dowling, Acting Director of Insurance of the State of Illinois, as Rehabilitator for Triad Guaranty Insurance Corporation and Triad Guaranty Assurance Corp. v. AAMBG Reinsurance Inc., No. 16-cv-07477, N.D. Ill., 2017 U.S. Dist. LEXIS 84231).



Reinsurer Seeks Trial Date Move After Failed Settlement Discussions
UTICA, N.Y. - Following failed settlement talks, a reinsurer in a June 12 letter requests that a New York federal court move the trial date in a reinsurance dispute from September to October to accommodate the schedule of its two key witnesses (Utica Mutual Insurance Co. v. Fireman's Fund Insurance Co., No. 09-cv-00853, N.D. N.Y.).



Judge Orders Parties To Arbitrate Reinsurance Suit Over Workers' Comp Risks
NEW YORK - In a dispute regarding reinsurance of workers' compensation risks, a New York federal judge on June 8 ordered the parties to arbitration, noting that it "is entirely speculative" whether an arbitrator will rule on the role of a group of companies as real parties in interest (In the matter of the arbitration between National Union Fire Insurance Company of Pittsburgh, PA v. Federal Insurance Co., No. 16-CV-8821, S.D. N.Y., 2017 U.S. Dist. LEXIS 88470).



Reinsurer Says Claims Of $1.3M Suit Are Not Ruled By Arbitration Clause
MONTGOMERY, Ala. - A reinsurer argues in a June 8 brief that an Alabama federal court should not stay a nonprofit public insurer's $1.3 million lawsuit pending arbitration because none of the claims is governed by a reinsurance agreement's arbitration clause (Alabama Municipal Insurance Corp. v. Munich Reinsurance America Inc., No. 16-cv-00948, M.D. Ala.).



Syndicates Ask Court To Compel Reinsurer To Follow Umpire Selection Process
BOSTON - In a dispute over environmental claims, a collection of insurance syndicates on May 31 asked a Massachusetts federal court to compel a reinsurer to arbitrate their disagreement and to enforce the parties' agreed-to procedure for the selection of an umpire (Certain Underwriters at Lloyd's, London v. Transport Insurance Co., No. 17-10618, D. Mass.).



Federal Bankruptcy Judge Orders Specialty Reinsurance Company To Post $15M Bond
NEW YORK - A New York federal bankruptcy judge held June 12 that a foreign specialty reinsurance company must post a bond in the amount of $15 million before a pending motion to compel arbitration of the dispute in Bermuda would be considered (In re: MF Global Holdings Ltd., et al. MF Global Holdings Ltd. as plan administrator, and MF Global Assigned Assets LLC v. Allied World Assurance Company Ltd., et al., Chapter 11 No. 11-15059, Adv. Proc. No. 16-01251, S.D. N.Y. Bkcy., 2017 Bankr. LEXIS 1585).



Judge Denies Amendment To Mortgage Insurance Reinsurance Scheme Suit
PITTSBURGH - In a mortgage insurance reinsurance scheme case, a Pennsylvania federal judge on June 6 denied leave to a putative class of mortgagors to file a third amended complaint based on their new theory under the Real Estate Settlement Procedures Act (RESPA) because it is time-barred and reliance on any equitable tolling doctrine has been disavowed (Linda Menichino, et al. v. Citibank, N.A., et al., No. 12-00058, W.D. Pa., 2017 U.S. Dist. LEXIS 86380).



Judge: Farming Co-op May Not Pay Premium Rebates In Reinsurance Years
TOLEDO, Ohio - After a merger with a non-grandfathered cooperative, a farming cooperative lost its status as an entity approved to make premium-rebate payments for 2005, 2006 or 2007 reinsurance years, an Ohio federal judge ruled June 6 (Sunrise Cooperative Inc. v. U.S. Department of Agriculture, et al., No. 16CV1297, N.D. Ohio, 2017 U.S. Dist. LEXIS 86696).



Farming Companies Appeal To 8th Circuit Ruling On FCIC's Right To Deny Claims
ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on May 25 docketed an appeal regarding a ruling that the Federal Crop Insurance Corp. (FCIC), as reinsurer, has the duty and authority to issue a binding interpretation of special provisions and that it correctly confirmed denial of coverage to four farming entities for their damaged rice crops (Bottoms Farm Partnership, et al. v. Risk Management Agency, et al., No. 17-2164, 8th Cir.).



Judge Orders Reinsurer To Provide Missing Tax Documents To Insurers
ATLANTA - In a case over fraudulent transfers of reinsurance funds, a Georgia federal judge granted in part insurers' motion to compel on June 12, ordering a reinsurer to provide missing tax documents to the insurers (Canal Insurance Co. and Canal Indemnity Co. v. Golden Isles Reinsurance Company Ltd,, et al., No. 15-cv-03331, N.D. Ga.).



Discovery Responses Were Not Deficient, Reinsured Says To Nebraska Federal Court
LINCOLN, Neb. - A reinsured writes in a June 7 letter to a Nebraska federal court that its discovery responses regarding a promissory note and a reinsurance participation agreement were not deficient (Applied Underwriters Inc. v. Top's Personnel Inc., No. 15CV90, D. Neb.).



Reinsurer Seeks Production Of Redacted Documents On 'Reserves,' 'Other Reinsurance'
PHILADELPHIA - In a breach of contract dispute, a reinsurer in a June 1 motion asks a Pennsylvania federal court to compel an insurer to produce all documents it redacted or withheld concerning "reserves," "reinsurance," "other reinsurance" and "proprietary" information (R&Q Reinsurance Co. v. St. Paul Fire & Marine Insurance Co., No. 16-cv-01473, E.D. Pa.).



Reinsurer Opposes Insolvent Insurer's Bid To Assert Additional $362,788 In Claims
NEW YORK - A reinsurer on June 2 filed a letter with a New York federal court opposing a request by the liquidator of The Home Insurance Co. to amend a complaint to assert additional claims for $362,787.84 in a dispute over reinsurance proceeds allegedly owed to the insurer's estate (Roger A. Sevigny, the Commissioner of Insurance of the State of New Hampshire, as Liquidator of The Home Insurance Company v. Trygvesta Forsikring A/S, as successor in interest to Skandinavia Insurance Company Ltd., Trygvesta Forsikring A/S v. Cerberus Holding Company, LLC., No. 16-cv-04874, S.D. N.Y.).