Reinsurer Not Liable for $2.3 Million Settlement

SAN FRANCISCO - 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 the reinsurer to follow the fortunes, a federal appellate court has ruled. Texas Farmers Insurance Co. v. Lexington Insurance Co., No. 08-55835 (9th Cir.).

On May 21, the 9th Circuit U.S. Court of Appeals upheld a California federal court's grant of summary judgment to Lexington Insurance Co.

Janice Kupukaa brought a medical malpractice lawsuit in Hawaii state court against Kaiser Permanente, various affiliated entities and a …