Ala. Federal Judge Says Insurer Not Entitled to Entirety of Funds from Reinsurance-Related Account

BIRMINGHAM, Ala. — An Alabama federal judge has denied without prejudice an insurer’s effort to collect the entire portion of funds from accounts that had been established in connection with a reinsurance agreement, ruling that each party is clearly entitled to a portion of the funds.

In an Aug. 16 order, Judge Virginia Hopkins of the U.S. District Court for the Northern District of Alabama also awarded each party summary judgment on the other’s cross claims, ruling that the claims are time-barred.

Old Republic Union Insurance Co. and Chattawood Insurance Co. entered into a reinsurance agreement in 1987, and in …