STORY FROM: Reinsurance & Arbitration

Reinsurer's Agent Improperly Joined, Florida Judge Rules

JACKSONVILLE, Fla. - A Florida federal judge has ruled that a reinsurer's agent was improperly joined to a declaratory judgment action brought by an insurer of extended motor vehicle service contracts. First Automotive Services Corp. v. First Colonial Ins. Co., No. 07-682 (M.D. Fla.).

Judge Timothy J. Corrigan of the Middle District of Florida denied the plaintiffs' motion to remand the case to state court after ruling that the agent is not an alter-ego of the reinsurer.

First Automotive Service Corp. insures extended vehicle service contracts marketed by Mechanical Breakdown Protection Inc. to automobile dealers and vehicle owners. First Automotive ...

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