Captive Says Munich Re Obligated to Pay Toward Settlement of Harassment Claims

FLINT, Mich. — A captive insurer asserts Munich Reinsurance America Inc. must partially reimburse it for the University of Michigan’s settlement of sexual misconduct claims, arguing that a claimant’s 2013 tuition refund requests did not constitute a “claim first made.”

In a Jan. 26 reply brief filed in the U.S. District Court for the Eastern District of Michigan, Veritas Insurance Corp. contends Munich Re cannot deny reinsurance coverage based upon its assertion that the requests constitute a “claim,” because they did not seek relief for a “wrongful act.”

Veritas is the captive insurer for the Regents of The University of …