FSIA Relieves Foreign Reinsurer from Posting Prejudgment Security, Federal Judge Rules

CHICAGO — As an instrumentality of the Republic of Uruguay, Banco de Seguros del Estado is immune under the Foreign Sovereign Immunities Act and need not post security before answering a complaint filed by Pine Top Insurance Co. in a $2 million reinsurance dispute, an Illinois federal judge has ruled.

On Dec. 13, Judge Marvin E. Aspen of the U.S. District Court for the Northern District of Illinois held that Banco did not waive its immunity under the FSIA and that the prejudgment security is an “attachment” within the meaning of the act.

Between 1977 and 1984, Banco entered into …