Foreign Insurer May Invoke Conn. Pre-Pleading Security Statute, Federal Magistrate Judge Rules

HARTFORD, Conn. — A foreign insurer is not barred from invoking Connecticut’s pre-pleading security statute because the statute does not address the citizenship of the party initiating the action, a federal magistrate judge has ruled in addressing Excalibur Reinsurance Corp.’s motion for reconsideration of a ruling requiring it to post security.

In a May 10 order, Magistrate Judge Joan Margolis of the U.S. District Court for the District of Connecticut said Section 38a-27(a) does not address the citizenship of the moving party, nor is there Connecticut case law to the contrary; therefore there is no basis for reconsideration of the …