STORY FROM: Reinsurance & Arbitration

Texas Federal Judge Dismisses U.S. Fire Reinsurance Action Without Prejudice

DALLAS — A Texas federal judge has dismissed without prejudice a lawsuit in which United States Fire Insurance Co. disclaimed its obligation under a reinsurance agreement to fund an underlying class action accusing its cedent of breaching health insurance policies by discounting the insureds’ medical bills.

On July 22, Judge David C. Godbey of the U.S. District Court for the Northern District of Texas accepted U.S. Fire’s explanation that the parties have entered into a confidential tolling agreement in an attempt to resolve the dispute.

U.S. Fire added that the parties have reserved their right to initiate a lawsuit ...

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