A United States District Judge dismissed RICO claims asserted against GenRe by the Insurance Commissioners of Tennessee and Virginia in an MDL action relating to the liquidation of Reciprocal of America and various risk retention groups, due to the failure to adequately plead reliance. In re Reciprocal of America Sales Practices Litigation, case no., MDL 04-1551 (June 12, 2006). The claims alleged that GenRe provided illusory reinsurance, under which it did not assume substantial risk.
The United States Court of Appeals for the Second Circuit vacated orders entered granting Republic Insurance Company summary judgment interpreting facultative reinsurance certificates, finding that the provisions regarding when definitive statement of loss were required to be submitted were ambiguous, requiring consideration of extrinsic evidence and resolution of the ambiguity by a trier of fact. Folksamerica Reinsurance Co. v. Republic Ins. Co., Case No. 04-2716 (May 26, 2006).