STORY FROM: Reinsurance & Arbitration

Policyholder’s State Law Claims Against Crop Insurer Preempted, 4th Cir. Affirms

RICHMOND, Va. — A federal appellate court has upheld dismissal of a dispute between a crop insurer and its policyholder, ruling that the insured’s state law claims are preempted by the Federal Crop Insurance Act.

On June 13, the 4th Circuit U.S. Court of Appeals agreed with recent cases holding that claims arising from an insurer’s determination under the policy are preempted.

JOC Farms sued Rural Community Insurance Agency Inc. d/b/a Rural Community Insurance Services and Fireman’s Fund Insurance Co. in the U.S. District Court for the Eastern District of North Carolina. JOC sought to challenge defendants’ adjustment of its ...

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