Everest Accuses Broker of Wrongfully Withholding $700,000

TRENTON, N.J. - Everest Reinsurance Co. has sued a broker in federal court, accusing it of unlawfully withholding more than $700,000 in premiums derived from the insurer's writing of "space business." Everest Reinsurance Co. v. International Aerospace Insurance Services Inc., No. 11-5332 (D. N.J.).

The Sept. 15 complaint, filed in the U.S. District Court for the District of New Jersey, accuses International Aerospace Insurance Services Inc. of collecting "profit commission" despite the fact that the parties never entered into a formal program administration agreement.

According to the complaint, in September 2009, Everest and Inter-Aero began discussing the possibility of entering …