Alabama Insurer Sues Munich Re for $350,000 in Reinsurance Proceeds

MOBILE, Ala. — An Alabama non-profit public insurer is accusing Munich Reinsurance America Inc. of breaching a reinsurance contract by failing to fully reimburse it for a $1.3 million settlement of flood claims asserted against an insured city.

In a Dec. 7 complaint filed in the U.S. District Court for the Middle District of Alabama, Alabama Municipal Insurance Corp. (AMIC) asserts that Munich Re owes it $350,000 in reinsurance proceeds.

According to the complaint, Munich Re issued AMIC a Casualty Excess of Loss Reinsurance Agreement, under which AMIC agreed that it would “retain and be liable for the first $350,000 …