S.C. Federal Judge Denies Bank Summary Judgment in Reinsurance Case

COLUMBIA, S.C. — A South Carolina federal judge has denied a bank’s motion for summary judgment on claims that it breached its duties as the trustee of funds set aside to secure a fronting insurer’s reinsurance obligations, ruling that the claims are timely.

In a Feb. 28 order, Judge Michelle Childs of the U.S. District Court for the District of South Carolina found the trust agreement at issue a “security arrangement” that is not subject to the one-year statute of limitations set by the South Carolina Trust Code.

In April 2013, AICI began participating in a fronted reinsurance program with …