STORY FROM: Reinsurance & Arbitration

Health Insurer Says Reinsurer Breached Contract by Denying $950,742 Claim

DETROIT — A health insurer has sued American National Insurance Co. in Michigan federal court, accusing it of breaching a reinsurance contract by refusing to pay a nearly $1 million claim.

In a complaint filed Sept. 10 in the U.S. District Court for the Eastern District of Michigan, Alliance Health and Life Insurance Co. (AHL) says American National owes it $950,742.64 for healthcare services provided to an eligible claimant and her dependent.

The claimant works for a company that purchased an AHL Group PPO policy with an effective date of Jan. 1, 2013. According to the complaint, the employee completed ...

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