S.C. Federal Judge Finds for U.S. Bank in Reinsurance Trust Dispute with Accident Insurance

COLUMBIA, S.C. — Following a bench trial, a South Carolina federal judge has ruled that U.S. Bank National Association did not breach its duties as the trustee of a reinsurance account or breach its trust agreement with Accident Insurance Co. (AIC).

In an April 20 order, Judge J. Michelle Childs of the U.S. District Court for the District of South Carolina further ruled that U.S. Bank did not commit civil conspiracy.

In April 2013, AIC entered into a reinsurance contract with Freestone Insurance Co. as part of a fronted insurance program. As the program began, Southport Lane, L.P., a …