Calif. Judge: Reinsurer Has No Duty to Pay $2.3M For Settlement

LOS ANGELES - A reinsurer is not obligated to pay $2.3 million for settlement of a medical malpractice action because the reinsured excess policy was "stand-alone" and did not require the excess insurer (or its reinsurer) to follow the primary insurer's coverage decisions, a California federal judge has ruled. Texas Farmers Insurance Co. v. Lexington Insurance Co., No. 2:06-cv-08220 (C.D. Calif.).

Judge Dean Pregerson of the U.S. District Court for the Central District of California granted Lexington Insurance Co.'s motion for summary judgment on April 21. The primary insurer, Texas Farmers Insurance Co., filed a notice of appeal on May …