Mealey's Reinsurance : Mealey's : Legal News & Analysis

Mealey's Reinsurance

October 07, 2025
N.C. Business Judge Denies Third-Party Claims Dismissal In Captive Insurer Dispute

LINCOLNTON, N.C. — A North Carolina business court judge denied dismissal of third-party claims in a shareholder action involving a captive insurer, finding that allegations that former executives created a competing insurance company, diverted company resources and made defamatory statements to state regulators were sufficient to establish jurisdiction over the competing company.
October 06, 2025
Federal Circuit Affirms That Monetary Obligations Are Not Compensable Takings

WASHINGTON, D.C. — A Federal Circuit U.S. Court of Appeals panel affirmed a Court of Federal Claims ruling, holding that contributions to the Affordable Care Act’s (ACA) Transitional Reinsurance Program (TRP) are a statutory obligation to pay money rather than a compensable taking under the Fifth Amendment, and that two self-insured group health plan trusts failed to show that the U.S. government appropriated their property.
October 06, 2025
Judge: Retirees In PRT Challenge Have Standing But Didn’t State Claims

BOSTON — Overruling objections from each party in a putative class action that is part of a wave of challenges to pension risk transfers (PRTs), a Massachusetts federal judge granted dismissal motions upon concluding that the plaintiff retirees narrowly have standing because of allegations that they “received an inferior financial benefit than that to which they were entitled” — but failed to state their claims.
October 03, 2025
Summary Judgment Partially Granted, Partially Denied In Indemnification Dispute

BOSTON — A Massachusetts federal judge partially granted summary judgment in favor of an insurer on its two declaratory relief claims, holding that a reinsurer’s obligations under a stock purchase agreement (SPA) and reinsurance agreement were not novated, waived or barred, but denied summary judgment on the insurer’s breach of contract claims after finding that the record did not conclusively establish damages.
October 02, 2025
N.Y. Federal Judge Compels Arbitration In Escrow Dispute, Denies Dismissal Bid

ALBANY, N.Y. — A New York federal judge compelled arbitration among a borrower, an insurer, the insurer’s CEO and a liaison of the insurer, holding that the borrower, seeking to recover a $1 million escrow deposit tied to a failed $5 million loan, brought claims under an insurance policy containing an arbitration clause, thereby binding the insurer, CEO and liaison to arbitration.
September 29, 2025
COMMENTARY: Exceptions To The Custom And Practice Of Follow The Settlements: Improper Claim Handling And Allocation

By Robert M. Hall
September 30, 2025
New York Federal Judge Deepens Standing Split In Series Of PRT Challenges

NEW YORK — Days after a different New York federal judge dismissed a similar pension risk transfer (PRT) complaint for lack of standing, a New York federal judge on Sept. 29 largely declined to dismiss a putative class case, ruling that retirees have standing because they sufficiently alleged that the PRT “created a substantial risk that Plaintiffs will not receive their benefits” and “diminished the value of Plaintiffs’ benefits.”
September 30, 2025
Discovery Stayed Pending Resolution Of Dismissal Motions In Reinsurance Dispute

WILMINGTON, Del. — A Delaware state vice chancellor granted a stay of discovery pending the resolution of motions to dismiss in three related cases concerning a disputed captive reinsurance pool, holding that the filing defendants demonstrated good cause under the court’s rules and concluding that, with dispositive motions pending and no special circumstances justifying immediate discovery, a pause was necessary to prevent undue burden and expense.
September 26, 2025
Reinsurer, Agency Allege RICO Scheme Inflated Injury Claims And Insurance Costs

BROOKLYN, N.Y. — A reinsurer and management general agency allege in a New York federal court that numerous doctors and medical providers engaged in a Racketeer Influenced and Corrupt Organizations Act (RICO) scheme in which they had workers stage construction accidents and exaggerate minor injuries to generate fraudulent workers’ compensation and liability claims to drive up settlement values and insurance costs.
September 25, 2025
A 2nd Pension Risk Transfer Case Is Dismissed For Lack Of Standing

ALBANY, N.Y. — Nearly six months after the first two rulings on dismissal motions in a much-watched recent set of putative class actions challenging pension risk transfers (PRTs) that retirees allege increase the possibility that they won’t get all of their promised benefits because of factors including offshore captive reinsurance, a New York federal judge issued the third ruling on Sept. 24, granting dismissal without prejudice for failure “to plausibly allege any injury-in-fact sufficient to establish standing.”
September 25, 2025
Summary Judgment Bid, Dismissal Of Counterclaim Denied In IRS Penalty Case

PITTSBURGH — A Pennsylvania federal judge denied a corporation’s motion to dismiss a counterclaim filed by the U.S. government and motion for summary judgment in a dispute over the alleged promotion of a tax shelter through a captive insurance arrangement, ruling that while the IRS penalties at issue implicate the Seventh Amendment, the statutory scheme is constitutional because the corporation may seek de novo jury trial review in federal court.
September 25, 2025
180-Day Extension Of Claims Objection Bar Date Requested In Vesttoo Liquidation

WILMINGTON, Del. — A Delaware federal bankruptcy court has been asked to extend the claims objection bar date in the Chapter 11 liquidation of Vesttoo Ltd. and its dozens of affiliates by 180 days to April 6, 2026, with the beleaguered reinsurance provider citing a need for more time to generate proceeds and reconcile claims.
September 25, 2025
Insurance Administrator Sued Over Coverage Reversal Tied To Reinsurance Denial

BEND, Ore. — A public school district filed suit in Oregon state court, alleging that a nonprofit insurance administrator initially accepted coverage for a multimillion-dollar structural damage claim but later reversed its coverage decision after reinsurers denied liability.
September 24, 2025
3rd Circuit Denies Rehearing In Securities Suit Against Reinsurer

PHILADELPHIA — A Third Circuit U.S. Court of Appeals panel denied the petition of a reinsurer and three former executives to rehear its decision to vacate a lower court’s discovery and summary judgment rulings in investors’ suit against the reinsurer and executives over allegations that they violated federal securities laws by omitting historical loss ratios from loss reserves disclosures; the panel had found that the omitted historical loss ratios were material and that discovery had not been completed.
September 23, 2025
Insurers Seek $10M Over Alleged Mismanagement Of Captive Insurance Program

NEW YORK — Four insurers filed suit in New York federal court against an insurance services firm, its captive affiliate and its general counsel, alleging mismanagement of a captive program that included failure to collect collateral, obstruction of trust withdrawals and interference with contractual rights, seeking more than $10 million in damages for breach of contract, negligence and tortious interference.
September 23, 2025
Judge Defers Ruling In Insurance Dispute Involving Arbitration, $524M Judgment

TAMPA, Fla. — In a docket-only order on Sept. 22, finding that the court cannot determine “whether diversity jurisdiction exists in this case,” a Florida federal judge deferred ruling on any pending motions in a suit filed by insurance mogul Greg Lindberg, the former owner of now-insolvent insurers, seeking to compel arbitration against a Puerto Rico insurer related to a dispute with it involving a $524 million judgment pursuant to a personal guaranty for a reinsurance agreement.
September 23, 2025
Insurer, Reinsurer File Joint Dismissal Motion In Mine Coverage Dispute

OMAHA, Neb. — National Indemnity Co. (NICO) and a reinsurer it sued for breach of contract and declaratory judgment jointly moved in Nebraska federal court to dismiss the reinsurer with prejudice as part of NICO’s suit to enforce its reinsurers’ obligations for incurred liabilities related to asbestos exposure stemming from a Montana mine.
September 22, 2025
Appellants Argue Reinsurer Was ‘De Facto Insurer’ In $844M Crash Coverage Appeal

MIAMI — Survivors of a 2016 plane crash and representatives of the deceased filed a brief in a Florida appellate court, arguing that a reinsurer acted as a “de facto insurer” and that state law accordingly permits them to pursue independent bad faith and coverage claims despite a trial court’s dismissal of their amended complaint that sought to enforce approximately $844 million in consent judgments.
September 22, 2025
Reinsurer Claims Insurer Withheld Premiums, Improperly Terminated Agreement

DALLAS — A reinsurer sued an insurer in a Texas state court, alleging that the insurer withheld more than $31 million in reinsurance premiums under a quota share reinsurance agreement (QSRA) and related deal, retroactively attempted to terminate their contract in violation of notice requirements and engaged in conduct amounting to breach of contract, unjust enrichment and statutory theft.
September 17, 2025
4th Circuit Will Consider Standing Issue In ERISA Pension Risk Transfer Case

RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals has agreed to allow an interlocutory appeal of a ruling that retirees had standing to file a putative class lawsuit that is part of a much-watched recent string of Employee Retirement Income Security Act cases challenging pension risk transfers (PRTs) where, among other things, retirees allege that the use of offshore captive reinsurers makes annuity providers riskier.
September 17, 2025
Parties Reach Settlement To Resolve All Remaining Claims In Reinsurance Dispute

SACRAMENTO, Calif. — The two remaining parties in a suit involving reinsurance and related agreements notified a California federal court that they have reached a final settlement, resolving all outstanding claims and providing for the distribution of funds held by the court.
September 16, 2025
After Settlement Negotiations, Magistrate Orders Conference In Coverage Dispute

INDIANAPOLIS — After being advised of ongoing settlement negotiations in an underlying case, an Indiana federal magistrate judge ordered the parties to attend a telephonic status conference to discuss the suit filed by an insurer now in rehabilitation seeking a declaration that specified directors and officers (D&O) policies apply to cover claims in underlying litigation.
September 16, 2025
Reinsurer, General Agency Voluntarily Dismiss Doctor In RICO Case

BROOKLYN, N.Y. — A reinsurer and a management general agency gave notice to a New York federal court that they are voluntarily dismissing claims against a doctor in a Racketeer Influenced and Corrupt Organizations Act (RICO) lawsuit alleging fraudulent workers’ compensation claims and personal injury lawsuits.
September 16, 2025
Reinsurer Claims Lack Of Issue Preclusion In Mine Subsidence Suit Against Railroad

SPRINGFIELD, Ill. — A reinsurer filed a reply memorandum supporting its motion for summary judgment in litigation concerning mine subsidence claims, contending that a railroad company’s opposition raises no material factual disputes and that its arguments are immaterial to the claim and issue preclusion factors central to the case.
September 16, 2025
Mass. Federal Judge Clears Reinsurer Of Liability In Rental Car Coverage Dispute

BOSTON — A Massachusetts federal judge granted summary judgment in favor of a reinsurer, dismissing all claims against it for prematurely terminating rental car benefits, holding that the auto insurance policies in dispute were issued by a distinct, but affiliated, insurer, and that the reinsurer’s service and reinsurance agreements did not establish alter-ego control of the insurer.