REINSURER’S ROLE IN INSURANCE POLICY FOUND TO BE AMBIGUOUS, SUPPORTING A DIRECT ACTION AGAINST IT BY THE INSURED
Felman Production, Inc. brought suit against Industrial Risk Insurers (“IRI”), an unincorporated association, after one year of inconclusive coverage discussions. The suit also named two of IRI’s member companies as defendants, one of which was Swiss Reinsurance America Corporation (“Swiss Re”). Swiss Re moved to dismiss, arguing that Swiss Re is merely the reinsurer of the policy, not the original insurer. The court disagreed, finding that Swiss Re’s role was ambiguous pursuant to certain policy language. The court thus denied Swiss Re’s motion to dismiss. Felman Prod., Inc. v. Industrial Risk Insurers, Case No. 09-0481 (USDC S.D. W.Va. Oct. 19, 2009).
This post written by Dan Crisp.
