Ill. Federal Judge Refuses to Dismiss Vehicle Service Contract Reinsurance Case

CHICAGO — A federal judge has refused to dismiss a lawsuit accusing a Delaware captive insurer of failing to pay a reinsurer $20 million allegedly owed under a vehicle service contract reinsurance agreement, ruling that the merits of the dispute cannot be properly determined on a motion to dismiss for failure to state a claim.

In a Dec. 30 order, Judge Matthew Kennelly of the U.S. District Court for the Northern District of Illinois also stayed the action for 30 days to allow the parties to attempt to resolve the case by agreement.

PMC’s affiliates, Protect My Car LLC and …