STORY FROM: Reinsurance & Arbitration
Fla. Federal Judge Dismisses Bad Faith Claim in Transamerica Universal Life Insurance Case
April 2, 2020
MIAMI — A Florida federal judge has dismissed a bad faith claim in an action accusing a life insurer of improperly raising the cost of insurance on many of its universal life insurance policies and releasing reserves through a series of captive reinsurance transactions in order to pay its foreign parent company.
In a March 30 order, Judge Robert N. Scola Jr. of the U.S. District Court for the Southern District of Florida explained that the bad faith claim is premature and does not accrue until the plaintiff’s breach of contract claim is resolved.
Michael Foster and David Glassberg filed ...