Guarantee Trust Life Obtains $2.7 Million Default Judgment in Ill. Federal Reinsurance Dispute

CHICAGO — Guarantee Trust Life Insurance Co. has obtained a $2,716,527.64 default judgment against American Medical and Life Insurance Co. in a dispute over medical reinsurance proceeds, finding AMLI has abandoned its defense and any claims it may have had against GTL.

Judge Thomas M. Durkin of the U.S. District Court for the Northern District of Illinois entered the judgment, which includes attorneys’ fees and costs.

The action involved two reinsurance treaties. Under the first treaty, effective Aug. 1, 2008, to July 31, 2009, GTL allegedly agreed to reinsure limited medical insurance policies issued by AMLI in certain states (the …