CIFG Hits Assured With Bond Reinsurance Suit

Law360, New York (July 27, 2010, 5:41 PM EDT) -- Assured Guaranty Corp. is facing accusations that it bailed on a contract compelling it to assume responsibility for a bond insurance policy issued by CIFG North America Inc. after the policy became risky and unprofitable.

CIFG, a New York-based monoline bond insurer, filed suit Monday in the New York County Supreme Court alleging that Assured agreed to reinsure a policy for bondholders of an Iowa water company then changed its mind as soon as it suspected it would have to make a payment.

As a result...
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