Insurer Seeks Exit from Superstorm Sandy Case, Says Bad Faith Claims Are Preempted

TRENTON, N.J. — Selective Insurance Co. of America is seeking dismissal from a dispute over proceeds from a Superstorm Sandy flood insurance claim that were paid to an allegedly undeserving beneficiary that was added to the policy.

In a motion filed Nov. 1 in U.S. District Court for the District of New Jersey, Selective requests that it be permitted to interplead funds and be dismissed with prejudice because any remaining state law bad faith and fraud claims asserted against the insurer are preempted by well-settled federal law.

Selective was named in a complaint filed earlier this year by Amethyst International …