5th Cir. Reverses Dismissal of Lincoln General’s Breach of Fiduciary Duty Claims in Reinsurance Premium Dispute

NEW ORLEANS — A federal appellate court has reinstated claims of breach of fiduciary duty asserted by Lincoln General Insurance Co. against its managing general agent in a dispute over reinsurance premiums, finding the MGA had a fiduciary duty under the terms of the contract at issue.

In a May 18 opinion, the 5th Circuit U.S. Court of Appeals found the agreement required the MGA “to handle all funds as a fiduciary from the moment it accepted them until the time they left its control — a period including when it calculated commissions, made deductions, and ultimately deposited the …