Parties Reach Settlement in S.C. Federal Reinsurance Trust Account Dispute

COLUMBIA, S.C. — A South Carolina federal judge has dismissed a lawsuit involving proceeds in a reinsurance trust account, following the 4th Circuit U.S. Court of Appeal’s ruling that U.S. Bank National Association breached its duty to ensure that the assets were in the proper form before accepting them for deposit.

In a May 9 order, Judge J. Michelle Childs of the U.S. District Court for the District of South Carolina explained that the parties reached a settlement after the 4th Circuit remanded the case for further proceedings.

AIC and Dallas National Insurance Co. entered a reinsurance contract with Freestone …