$11 Million Case Involving North Carolina Reinsurance Facility Revived on Appeal

RALEIGH, N.C. — A North Carolina court has revived a dispute over whether a state reinsurance facility is required to reimburse Allstate for an $11 million settlement of bad faith claims arising from a motor vehicle accident, ruling that the trial court misinterpreted the rules governing the facility’s review process.

In a June 4 opinion, the North Carolina Court of Appeals found the trial court erred in upholding the state insurance commissioner’s determination that the facility erroneously denied Allstate’s petition for reimbursement

In October 2007, Allstate Indemnity Co. issued an automobile insurance policy to Jason T. Crouse. The policy …