Mich. Federal Judge Dismisses $1 Million Reinsurance Action Without Prejudice

DETROIT — A Michigan federal judge has clarified that a case in which American National Insurance Co. is accused of breaching a reinsurance contract by refusing to pay a nearly $1 million health insurance claim should be dismissed without prejudice pending arbitration.

In a Nov. 4 order, Judge Paul D. Borman of the U.S. District Court for the Eastern District of Michigan explained that dismissal without prejudice is appropriate because it will allow Alliance Health and Life Insurance Co. (AHL) to refile in federal court if the arbitrator fails to resolve the parties’ entire dispute.

In January 2016, AHL and …