Reinsurer Lacks Standing to Assert Fraud Claims Against Policyholder, Pa. Federal Judge Rules

PITTSBURGH — A reinsurer lacks standing to seek a ruling that a primary policy is void due to a policyholder’s alleged fraudulent misrepresentations because although the reinsurer participated in the adjustment and investigation of the claims, it lacks privity with the policyholder because it is not a party to the policy.

In a Sept. 29 order, Judge David S. Cercone of the U.S. District Court for the Western District of Pennsylvania further ruled that the reinsurer lacks standing to pursue a statutory claim of insurance fraud against the policyholder because the reinsurer was not the policyholder’s “insurer” within the meaning …