Reinsurer’s Action Against U.S. Bank Heads to Mediation in S.C.

COLUMBIA, S.C. — A North Columbia federal magistrate judge has ordered mediation of a case in which a reinsurer accuses U.S. Bank National Association of breaching its duties as the trustee of an account securing an insurer’s liabilities in a fronting program.

In a Feb. 12 order, Magistrate Judge Kevin McDonald of the U.S. District Court for the District of South Carolina ordered the parties and their counsel to appear before him on March 25 for settlement talks.

In April 2013, Accident Insurance Co. entered into a reinsurance contract with Freestone Insurance Co. as part of a fronted insurance program. …