STORY FROM: Reinsurance & Arbitration
Reinsurer May Intervene in Action Against Universal Life Insurer, 10th Cir. Rules
January 3, 2020
DENVER — A reinsurer may intervene in a lawsuit accusing its cedent of failing to comply with the terms of a universal life insurance policy, a 10th Circuit U.S. Court of Appeals panel majority has ruled, finding the cedent insurer will not adequately represent the reinsurer’s interests in the litigation.
In a Dec. 23 opinion, the panel majority concluded that the reinsurer’s interests in the case are “substantial” and are not identical to its cedent’s. Specifically, in defending the claims against it, the cedent will eventually attempt to shift liability to the reinsurer, the majority reasoned.
Robert Barnes sued Security ...