N.C. Case Involving Fraudulent Reinsurance Arrangement Sent To Arbitration

GREENSBORO, N.C. — A North Carolina federal judge has ordered arbitration of a dispute between a life insurer and an actuary accused of causing the insurer to enter a fraudulent reinsurance arrangement that cost it more than $20 million in assets, rendering it insolvent.

In an Aug. 10 order, Judge Loretta C. Biggs of the U.S. District Court for the Middle District of North Carolina dismissed the case over the plaintiff’s objection, explaining that all of the claims will go to arbitration, leaving no claims left before the court.

Judge Biggs noted that the plaintiff, North Carolina Mutual Life Insurance …