U.S. Fire Moves to Dismiss Lawsuit Against Cedent, Says Parties Attempting to Resolve Dispute

DALLAS — United States Fire Insurance Co. seeks dismissal of a lawsuit in which it disclaims its obligation under a reinsurance agreement to pay defense or indemnity for a class action lawsuit accusing its cedent of breaching health insurance policies by discounting the insureds’ medical bills.

In a May 18 motion filed in the U.S. District Court for the Northern District of Texas, U.S. Fire explained that the parties have entered into a confidential tolling agreement in an attempt to resolve the dispute. U.S. Fire adds that the parties have reserved their right to initiate a lawsuit in the future …