Reinsurance Policy Does Not Bar Subrogation Claim, Federal Judge Rules

BOISE, Idaho - An excess insurer's reinsurance policy does not affect its ability to assert a subrogation claim against a primary insurer because at least a portion of the subrogation amount would be credited back to the reinsurer and the claimant would not receive a "windfall," an Idaho federal judge has ruled. United Heritage Property and Casualty Co. v. Farmers Alliance Mutual Insurance Co., No. 1:10-456 (D. Idaho).

On Feb. 27, Judge William B. Shubb of the U.S. District Court for the District of Idaho denied the primary insurer's motion in limine to exclude evidence of damages sustained by United …