Connecticut statute requiring posting of collateral by unauthorized reinsurer enforced
A District Court has enforced a Connecticut statute requiring that prior to filing any pleading in any court action, non-admitted insurers post collateral in an amount “sufficient to secure the payment of any final judgment.” Conn. Gen. Stat. section 38a-27. The Court held that this statute applied to reinsurers, but instead of striking an answer that had been filed, gave the defendant 15 days to post the required security, failing which its Answer would be stricken. Security Ins. Co. of Hartford v. Universal Reinsurance Co., Case No. 06-158 (D. Ct. Jan. 25, 2007).
