Plaintiffs Urge N.Y. Federal Judge to Strike Reinsurer’s Pleading for Failure to Post Security

NEW YORK — Plaintiffs in a lawsuit accusing a captive reinsurer of siphoning assets from an employee benefit plan are urging a New York federal judge to strike the reinsurer’s motion to dismiss, arguing that as an unauthorized insurer, the reinsurer was required to post security.

In a Sept. 13 filing in the U.S. District Court for the Eastern District of New York, the plaintiffs argue that as an unlicensed insurer, HealthCap Assurance Inc. must post security pursuant to New York Insurance Law § 1213(c).

Plaintiffs are employees of Preferred Home Care of New York LLC and Edison Home Health …