Lawsuit Accusing Banner Life of Shifting Debt to Reinsurers Nears Settlement

BALTIMORE — The parties in an action accusing Banner Life Insurance Co. of shifting its debt to offshore reinsurers in order to hide its “questionable” solvency have told a Maryland judge that they are close to settling.

According to a July 9 joint status report filed before Judge Richard D. Bennett of the U.S. District Court for the District of Maryland, the parties “have additional details to resolve before a motion for preliminary approval can be filed.”

“The agreement reached is a joint, class-wide settlement for both the instant case and Rich v. William Penn Life Insurance Co. of New …