Car Warranty Co. Sues Reinsurer, Dealership for $1.18 Million in Ind. Federal Court

LAFAYETTE, Ind. — An automotive warranty company has sued an auto dealership and a reinsurer in Indiana federal court, accusing them of breaching a loan agreement and a related promissory note by failing to pay $1.18 million.

In a March 10 complaint filed in the U.S. District Court for the Northern District of Indiana, the plaintiff adds that MBR Reinsurance II and the dealership violated the agreements by selling substantially all of the dealership’s assets.

Raisor Automart LLC borrowed $1.5 million from Warranty Solutions Management Corp. on Oct. 1, 2018. As part of the loan, Raisor, Warranty Solutions and …