Plaintiff Permitted to Add Reinsurers as Defendants in Coverage Action

LOS ANGELES — A California federal judge has allowed the plaintiff in an insurance coverage action to add two reinsurers as defendants, ruling that she has plausibly alleged they are potentially liable for her losses under an assumption reinsurance contract.

In a June 29 order, Judge Fernando M. Olguin of the U.S. District Court for the Central District of California also remanded the action to state court because one of the reinsurers is a nondiverse party.

The American Insurance Co. (AIC) issued Delphine Vega a Multiguard Farm and Ranch Policy which insured her San Simeon, Calif., home. On Aug. 17, …