Steadfast Faces $10M Coverage Suit Over E&Y Tax Litigation

Law360, New York (June 11, 2013, 2:59 PM EDT) -- Captive insurance company Ram IIC Inc. on Monday hit Steadfast Insurance Co. with a lawsuit alleging Steadfast owes it $10 million for breaching a reinsurance contract related to policies Ram issued to Ernst & Young LLP.

Under the contract, Steadfast agreed to reinsure Ram on an excess-of-loss basis for losses sustained by Ram on some underlying professional indemnity insurance policies that Ram issued in 2000-2001 to Ernst & Young, according to the complaint.

“The reinsurance contract constitutes a legally binding obligation for Steadfast to indemnify Ram...
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