10th Circ. Sides With FDIC Over Insurance Payouts

Law360, New York (August 16, 2011, 9:04 PM EDT) -- The Tenth Circuit on Tuesday affirmed the Federal Deposit Insurance Corp. was correct to use the type of accounts two insurers had with a failed bank rather than the accounts' purpose to determine insurance payouts, a decision that costs them over $8 million.

A three-judge panel upheld a Kansas federal court's ruling that the FDIC did not act in an arbitrary and capricious manner by classifying two accounts held by Aviva Life & Annuity Co. and American Investors Life Insurance Co. as corporate rather than annuity...
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