Third Circuit Affirms Denial of Reinsurance Contract Rescission

Munich Reinsurance America, Inc. (“Munich”) provided reinsurance coverage to Everest National Insurance Co. (“Everest”) on workers compensation claims.  Munich then sought reinsurance coverage for its own liability and did so from Continental Casualty Insurance Co. (“Continental”).  Eventually, the independent underwriter that represented Continental in the deal informed Munich that it no longer underwrote coverage for Continental.  At that time, the underwriter suggested replacing Continental with American National Insurance Company (“ANICO”).  Munich gave the underwriter the same files Munich received from Everest, but did not provide …

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