U.S. Bank Denies Insurer’s Breach of Fiduciary Duty Claims, Asserts Counterclaim for Indemnity

COLUMBIA, S.C. — U.S. Bank National Association has denied an insurer’s allegations that it breached its duties as custodian of a reinsurance trust account, arguing the insurer’s alleged damages were caused by entities that were neither affiliated with the bank, nor under its control.

In a Nov. 2 answer filed in the U.S. District Court for the District of South Carolina, U.S. Bank also asserted a counterclaim against Accident Insurance Co. (AIC) for indemnity under the trust agreement.

In April 2013, AIC entered into a reinsurance contract (the “program agreement”) with Freestone as part of a fronted insurance program. …