Canal Opposes Golden Isles’ Motion to Dismiss $11.3 Million Action, Says Claims Have Merit

ATLANTA — In its opposition to Golden Isles Insurance Co.’s motion to dismiss a fraud action, Canal Insurance Co. says it has stated plausible claims against the reinsurer and the individual defendants for their participation in a scheme to defraud Canal out of millions of dollars in reinsurance proceeds.

In a Feb. 8 brief filed in the U.S. District Court for the Northern District of Georgia, Canal maintains that dismissal of the action is not warranted.

Golden Isles issued Canal Insurance Co. two reinsurance contracts in 2004. One of these agreements reinsured workers’ compensation policies and the other reinsured garage …