STORY FROM: Reinsurance & Arbitration
N.Y. Federal Judge Refuses to Dismiss Portion of Beechwood Re’s Counterclaim Against SHIP
September 6, 2019
NEW YORK — A New York federal judge has refused to dismiss a counterclaim accusing Senior Health Insurance Company of Pennsylvania of breaching the duty of good faith and fair dealing by failing to make interest payments to Beechwood Re Ltd. on a $50 million surplus note.
However, in a Sept. 3 order, Judge Jed Rakoff of the U.S. District Court for the Southern District of New York dismissed the remaining counts of the Beechwood Re defendants’ counterclaim with prejudice.
SHIP stopped writing new business in 2003 and developed a run-off strategy with the Pennsylvania Insurance Department.
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