Costa Rican Insurer Amends Complaint Against Brokers to Add Fraud Claims

MIAMI — A Florida state judge has allowed Instituto Nacional De Seguros to amend its second complaint against Hemispheric Reinsurance Group and Howden Insurance Brokers to add fraud claims accusing them of intentionally overcharging premium by “grossing up” and then covering up their wrongdoing.

On June 12, Judge Beth Bloom of the Miami-Dade County (Fla.) Circuit Court granted INS’s motion to add claims of fraudulent misrepresentation and constructive fraud against the brokers.

INS, a Costa Rican state-owned insurer, provides property damage and business interruption coverage to Instituto Costarricense de Electricidad (ICE), the Costa Rican state-owned telecommunications supplier.

In 2009, INS …