Guarantee Trust Life Sues Reinsurer, Alleging Improper Setoff

CHICAGO - Guarantee Trust Life Insurance Co. has sued American Medical and Life Insurance Co. in Illinois federal court, claiming that the reinsurer is improperly attempting to offset sums it owes under a reinsurance contract. Guarantee Trust Life Insurance Co. v. American Medical and Life Insurance Co., No. 10-2125 (N.D. Ill.).

Guarantee filed the first amended complaint on June 15 in the U.S. District Court for the Northern District of Illinois.

Guarantee and American entered into a reinsurance contract in 2008 that enabled American to sell insurance policies in states in which it is not licensed to sell policies. In …