Information Withheld During Retrocessional Underwriting Process Not ‘Material,' 3rd Cir. Affirms

PHILADELPHIA — American National Insurance Co. is not entitled to rescission of retrocessional contracts issued to Munich Reinsurance America Inc. because certain information withheld by Munich during the underwriting process was not material to ANICO’s decision issue the coverage, the 3rd Circuit U.S. Court of Appeals has affirmed.

In a Feb. 3 opinion, the appellate court found ANICO has not provided sufficient evidence that the withheld information would have caused ANICO’s agent to not issue retrocessional coverage, or to do so at a different price. Nor has ANICO shown that it is objectively reasonable for Munich to have believed that …