COURT COMPELS PRODUCTION OF LOSS RESERVE INFORMATION REPORTED TO REINSURER
The case involved an insurer’s denial of coverage for damage to a fishing vessel. The discovery dispute related to an insurer’s production of its reinsurance contract and reinsurance reporting, but with all information related to loss reserves redacted as confidential. The court compelled the insurer to produce the reserve information, citing cases holding that such information is relevant to whether the insurer acted in bad faith in denying coverage. The court was not persuaded by the insurer’s attempt to distinguish this reinsurance case from typical first party insurance disputes, finding that the plaintiff had shown that “the purported re-insurer in this case, is actually the front-line insurer.” McAdam v. State National Insurance Co., Case No. 12cv1333 (USDC S.D. Cal. Nov. 1, 2013).
This post written by Michael Wolgin.
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