Reinsurer's Claims Against MGA May Proceed, Judge Rules

DALLAS - A Texas federal judge has refused to dismiss a reinsurer's suit against a managing general agent, ruling that the reinsurer is not barred by a limitation of remedy provision from bringing claims that it did not assert in a previously settled suit. Lincoln General Insurance Co. v. U.S. Auto Insurance Services Inc., No. 10-2307 (N.D. Texas).

On Aug. 18, Judge Jane J. Boyle of the U.S. District Court for the Northern District of Texas further ruled that it is unclear whether an assignment agreement between the reinsurer and the cedent contravenes Texas public policy and that this issue …