Guarantee Sues To Guard $68M Trust From Union Insurer

Law360, Wilmington (March 6, 2013, 10:18 PM EST) -- Guarantee Insurance Co. on Wednesday sued to block Ullico Casualty Co. from dipping into a $68 million reinsurance trust between the two firms, claiming the labor union insurer is underwater and might be eyeing the trust’s assets.

The dispute relates to a 2009 reinsurance contract whereby Guarantee covered risks under Ullico’s workers compensation program, but the agreement restricts Ullico from tapping funds held as collateral in the trust if the company is insolvent, according to the Delaware Chancery Court complaint.  

Fort Lauderdale, Fla.-based Guarantee claims that...
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