Texas Federal Magistrate Judge Rejects Extra-Contractual Claims in Reinsurance Brawl

GALVESTON, Texas — A federal magistrate judge has recommended granting American National Insurance Co. (ANIC)’s motion to dismiss a cedent’s extra-contractual claims in a lawsuit accusing it of wrongly denying a reinsurance claim for reimbursement of a patient’s heart transplant hospital care.

In a Sept. 13 report and recommendation, Magistrate Judge Andrew M. Edison of the U.S. District Court for the Southern District of Texas opined that Section 493.055 of the Texas Insurance Code precludes such claims against a reinsurer.

Plaintiff Health First Health Plans Inc. provided an HMO plan to a Medicare patient (Doe Patient) who visited University of …