A New Jersey Appellate Court has agreed with arguments made by the Reinsurance Association of America, holding that a court could not, under the authority of New Jersey's Insurer Liquidation Act, adopt a plan that forced reinsurers to pay claims based upon IBNR estimates, and could not abrogate arbitration provisions contained in reinsurance agreements to force that disputes be litigated in the liquidation court. In re Liquidation of Integrity Insurance Company, Case No., C-7022-86, 2006 WL 2795343 (N.J. Super. A.D. Oct. 2, 2006).
Reinsurance Claims
Court dismisses case against Equitas entities for lack of jurisdiction
A US District Court, which had twice before denied motions to dismiss for lack of personal jurisdiction filed by Equitas Holdings Limited, Equitas Reinsurance Limited and Equitas Limited, has granted a motion to dismiss on the same ground filed by the same entities in a third case seeking arbitration of issues arising out of the denial of reinsurance claims. Employers Insurance Company of Wausau v. Equitas Holdings Limited, Case no. 06-291 (W.D. Wisc. Sept. 12, 2006). The Court found that the factual record before it in the prior cases had not been fully developed, and that it was joining the majority of courts that had ruled on this issue.
Court dismisses case against Equitas for lack of jurisdiction
A US District Court, which had twice before denied motions to dismiss for lack of personal jurisdiction filed by Equitas Holdings Limited, Equitas Reinsurance Limited and Equitas Limited, has granted a motion to dismiss filed by the same entities in a third case seeking arbitration of issues arising out of the denial of reinsurance claims. Employers Insurance Company of Wausau v. Equitas Holdings Limited, Case no. 06-291 (W.D. Wisc. Sept. 12, 2006). The Court found that the factual record before it in the prior cases had not been fully developed, and that it was joining the majority of courts that had ruled on this issue.
Summary judgment granted on surety bonds despite forgery claim
A Court has granted summary judgment on most claims relating to surety bonds that secured obligations under premium finance agreements. Westrm-West Risk Markets, Ltd. v. XL Reinsur. America, Inc., Case No. 02-7344 (USDC S.D. N.Y. July 19, 2006). The claims were complicated by allegations that the signature of the broker's representative were forged on some of the documents.
Insured may not maintain action against reinsurer
A pro se plaintiff had insurance with Chubb Insurance Group, which was reinsured by GE Employers Reinsurance. After her RICO action against Chubb was dismissed, she filed a RICO action against GE. The District Court dismissed the action, based in part on the general rule that an insured can not maintain an action directly against a reinsurer. Kuhn v. Kehrwald, Case No. 05-1228 (E.D. Wis. Aug. 4, 2006). The opinion describes the Plaintiff's submissions as “incoherent and filled with invective ….” Although she alleged that her business suffered a “mysterious loss of funds,” she was convicted of stealing money from the business and its clients.