REINSURED PERMITTED TO ADD FRAUD CLAIMS IN COMMISSION OVERCHARGE ACTION AGAINST REINSURANCE BROKERS
We previously reported on interlocutory decisions rendered in a lawsuit brought by Instituto Nacional de Seguros against Florida insurance broker Hemispheric Reinsurance Group, L.L.C. and London-based Howden Insurance Brokers Limited. INS alleges that HRG and Howden overcharged it on commissions in connection with its purchase of $300 million in faculty reinsurance coverage. The Florida circuit court recently allowed INS to amend its complaint to add fraud claims premised on the allegation that HRG and Howden engaged in “grossing up,” i.e., added their commissions to premium charges without informing INS. The court permitted INS’s amended complaint and ordered the pleadings closed. Instituto Nacional de Seguros v. Hemispheric Reinsurance Group, L.L.C., Case No. 10-33653 (Fla. Cir. Ct. June 12, 2013).
This post written by Ben Seessel.
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