Reinsurer’s Fiduciary Duty, Conversion Claims Against MGA Dismissed

DALLAS — A Texas federal judge dismissed fiduciary duty claims brought against U.S. Auto Insurance Services Inc. by reinsurer Lincoln General Insurance Co., ruling that the managing general agent owed no fiduciary duty to the reinsurer under the general agency and reinsurance agreements.

Judge Jane J. Boyle of the U.S. District Court for the Northern District of Texas also dismissed Lincoln General’s misappropriation and conversion claims against U.S. Auto and its affiliates, finding they are barred by the economic rule. However, the judge allowed the reinsurer’s tortious interference claims against two U.S. Auto affiliates to proceed.

Lincoln General reinsured …