STORY FROM: Reinsurance
$2.5 Million Suit Against Bond Reinsurer Dismissed by La. Federal Judge
March 28, 2012
BATON ROUGE, La. - A Louisiana federal judge has dismissed a $2.5 million suit accusing a reinsurer of wrongfully denying a hospital's request for $350 million in construction bonds, ruling that the insurance policy at issue gave the reinsurer the unqualified right to withhold consent. Woman's Hospital Foundation v. National Public Finance Guaranty Corp., et al., No. 11-14 (M.D. La.).
On March 20, Judge James J. Brady of the U.S. District Court for the Middle District of Louisiana noted that the consent provision in the reinsured policy included no qualifications or exceptions and did not mention the additional debt test ...