Insurer Counterclaims for $4 Million in Vehicle Service Contract Reinsurance Case

CHICAGO — A Delaware captive insurer has filed a counterclaim in a lawsuit accusing it of failing to pay a reinsurer $20 million allegedly owed under a vehicle service contract reinsurance agreement, arguing that the plaintiff insured owes more than $4 million in premiums.

In a Nov. 4 brief filed in the U.S. District Court for the Northern District of Illinois, Virginia Surety Company Inc. says it is willing to reimburse PMC Casualty Corp. for claims totaling $1,889,541 if PMC pays $4,156,531 in premiums.

PMC’s affiliates, Protect My Car LLC and Protect My Car Admin Services Inc., sold vehicle service …