Workers’ Comp Fund Says Bad Faith Claim Against Reinsurer Viable Under Ala. Law

MONTGOMERY, Ala. — A self-insured workers’ compensation fund is urging an Alabama federal judge to allow its bad faith claims against General Reinsurance Corp. to proceed in a lawsuit accusing it of wrongly refusing to pay $1.2 million in billings for claims made under a policy issued by the fund in 1989.

In an Aug. 18 opposition filed before Judge Myron H. Thompson of the U.S. District Court for the Middle District of Alabama, the Alabama Self Insured Workers Compensation Fund says its contractual relationship with General Reinsurance Corp. is a traditional insurance relationship and therefore its claims are viable …