Ala. Workers’ Comp Fund Sues Reinsurers for $1.2M

MONTGOMERY, Ala. — A self-insured workers compensation fund has sued its reinsurers in Alabama federal court, accusing them of breaching a reinsurance agreement by refusing to pay more than $1.2 million in reimbursement claims made under a policy issued in 1989.

In a March 31 complaint filed in the U.S. District Court for the Middle District of Alabama, The Alabama Self Insured Workers Compensation Fund accuses General Reinsurance Corp. (GRC) and its subsidiary of intentionally concealing their intention to deviate from prior claims-handling procedures in order to delay payments owed under the policy.

GRC’s subsidiary, defendant Genesis Insurance Co., is …