Conversion Claim Against Insurer, Reinsurer Dismissed in Universal Life Insurance Case

DENVER — A Colorado federal judge has dismissed a conversion claim filed against an insurer and a reinsurer in an action involving a universal life insurance policy, ruling it is barred by the economic loss doctrine because it is duplicative of the plaintiff’s breach of contract claim.

In a Jan. 19 order, Judge William Martinez of the U.S. District Court for the District of Colorado explained that conversion claims which “threaten to transform numerous run-of-the-mine contract cases into tort cases” are barred by North Carolina law.

Robert Barnes sued Security Life of Denver Insurance Co. (SLD) in the U.S. District …