Unauthorized Insurer May Sue Reinsurer in Florida

TALLAHASSEE, Fla. - A Florida state judge erred in dismissing an action filed by an unauthorized insurer against its reinsurers because the suit did not arise out of an unauthorized insurance transaction, a state appellate court has held. Advantage General Insurance Co. v. KILN PLC/QBE International Insurance Co., No. 4D08-1944 (Fla. App. Ct., 4th Dist.).

The Florida Court of Appeals, 4th District, ruled April 29 that Florida law allows unauthorized insurers to bring actions against their reinsurers.

Advantage General Insurance Co., a British Virgin Islands corporation, insured Air Sunshine, a Florida based airline company. Advantage, in turn, reinsured its risk …