Category: Reinsurance

PMA Capital Ins. Co. v. Platinum Underwriters Bermuda, LTD

(Eastern District of Pennsylvania, September 17, 2009)

A Reinsurer demanded arbitration, seeking a declaration with respect to calculation of the balance of the Experience Account under the reinsurance contract and that it was entitled to the “benefit deficit carry forward” under a prior contract with a different reinsurer.  The arbitrators awarded the reinsurer $6 million dollars within 30 days and eliminated the deficit carry forward provision in the contract in its entirety.  Finding that the …

Princeton Insurance Co. v. Converium Reinsurance (North America) Inc.

(Third Circuit, September 14, 2009)

In Princeton Insurance Company v. Converium Reinsurance (North America) Inc., the cedent and reinsurer entered into a treaty regarding workers’ compensation and employer’s liability policies.  The treaty provided reinsurance for claims exceeding $1 million. The treaty included a warranty which provided that  the cedent “warrants that the maximum Employer’s Liability limits are as follows, or so deemed:  i. Bodily Injury by Accident – $100,000 each accident.”…

CNA et al v. Willis Limited et al

According to its 8-K filing, Willis Limited, a subsidiary of WIllis Group Holdings Limited, acknowledged that it settled "the placement of personal accident reinsurance in London and elsewhere" with CNA Financial Corporation and Continental Casualty Company ("CCC") for a total sum of $130 million.  CNA had previously requested a sum of approximately $251 million for Willis' alleged negligence and/or "deceit" in English's Commercial Court.  The total figure will be paid in two installments.  The first installment of $60 million  will be paid …

Guarantee Trust Life Ins. Co. v. First Student Programs, LLC. et. al.

(United States District Court, Northern District Illinois, Eastern Division, September 8, 2009)

At issue in this reinsurance action is the res judicata effect of a prior arbitration award on the pending suit and whether insured’s compliant is barred by the arbitration award that resolved the dispute between reinsurer and the primary insurer.   Specifically, Guarantee Trust Life Insurance Company (GTL), which provides health insurance to college students, brought this lawsuit for reinsurance …

National Council of Compensation Insurance, Inc. v. AIG et al (Northern District of Illinois, August 31, 2009)

Just a few days after District Court Judge Gettleman dismissed the lawsuit initiated by the National Workers' Compensation Reinsurance Pool for lack of standing, Liberty Mutual Insurance Co., among several other insurance companies, filed a new lawsuit against AIG on August 31, 2009 based upon the same facts.  Liberty Mutual alleges to have standing as being a member of the pool. 

The lawsuit alleges that AIG falsely provided false reports …

Callon Petroleum Co. v. National Indemnity Co. et. al.

(United States District Court, Eastern District of New York, August 24, 2009)

Plaintiff commenced this reinsurance action against National based upon a judgment it obtained against insurer Frontier in Louisiana for $2.7 million.  The reinsurance agreement, which was negotiated and executed in New York, required National to reinsure Frontier’s liabilities and payments for all amounts of “Ultimate Net Loss.”  Pending before the Court was plaintiff’s motion to amend the complaint to include …

The General Electric Company v. Lines

(Mass. Super. Suffolk County August 3, 2009)

Plaintiff incurred liability for environmental contamination, and plaintiff’s insurer refused to defend and indemnify it for that liability.  Plaintiff and its insurer reached a settlement, and the insurer filed a reinsurance claim, which was rejected.  After the insurers entered into arbitration on the reinsurance claim, the liability insurer redomesticated to Bermuda.  Plaintiff filed an action against the joint liquidators, and the reinsurer’s successor intervened to interpose defenses to plaintiff’s …

Arch Reinsurance of Nebraska et al v. International Risk Insurance Co.

(SoUthern District of Texas, July 29, 2009)

On July 29, 2009, several reinsurers commenced a civil action in the U.S. District Court, Southern District of Texas, seeking to compel arbitration or, in the alternative, obtain a declaration of rights and liabilities between the parties.  The facts in the complaint allege that the insured, in anticipation of Hurricane Rita, began to shutdown ethylene furnaces.  A premature shutdown by a refinery caused a loss of steam …

NATIONAL COUNCIL ON COMPENSATION INSURANCE, INC. V. AIG, ET AL

(NORTHERN DISTRICT OF ILLINOIS AUGUST 20, 2009)

The issue before the district court is whether the National Council of Compensation Insurance, Inc. (“NCCI”) had standing to assert claims involving a National Workers Compensation Reinsurance Pool (“Pool”).  The Pool is an unincorporated active association that provides an insurance company with a means of complying with residual market requirements.  To become part of the Pool, insurers must execute a contract stating that the NCCI …

TIG Insurance Company v. Global International Reinsurance Company (Southern District of New York, August 11, 2009)

Global International Reinsurance Company agreed to indemnify TIG Insurance Company for certain losses. TIG performed an internal audit for losses prior to 2003 to ensure claims were properly coded. Global did not object to the protocol employed by TIG.

The audit showed a number of claims were indeed miscoded. TIG represented to Global that the errors had been remedied. The parties entered into a settlement agreement that dismissed with …