Iowa Insurer Sues Reinsurance Broker for Procuring Insufficient Facultative Coverage

DES MOINES, Iowa — An Iowa insurer has sued a reinsurance broker in federal court, accusing it of failing to obtain sufficient reinsurance coverage for a policy it issued, causing the insurer to sustain significant economic losses when a claim was filed under the policy.

In an Oct. 4 complaint filed in the U.S. District Court for the Southern District of Iowa, GuideOne Insurance Co. contends that Howden Reinsurance Brokers Ltd. repeatedly stated that the requested reinsurance coverage had been placed, when in fact it was not.

According to the complaint, in December 2001, GuideOne and Howden entered into a …