STORY FROM: Reinsurance & Arbitration
RICO Claims Alleging Fraudulent Reinsurance Transactions Preempted, 8th Cir. Affirms
May 1, 2017
KANSAS CITY — Claims that an insurer violated the RICO Act by engaging in fraudulent reinsurance transactions in order to artificially inflate its reported assets are preempted because they would intrude upon the states’ insurance regulation schemes, a federal appeals court has affirmed.
On April 13, the 8th Circuit U.S. Court of Appeals found the claims contravene the McCarran-Ferguson Act, which gives states the authority to “regulate the business of insurance.”
Dale Ludwick purchased annuities from defendant F&G Life Insurance Co. since April 2011. Defendant Harbinger Group Inc. acquired F&G on April 6, 2011.
Ludwick alleged in a lawsuit ...
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