Last year, I discussed a California case where tort claims were brought in the reinsurance context and the court threw them out. A federal court in Alabama recently addressed a similar issue, where a municipal insurer brought bad faith tort claims against its reinsurer when the reinsurer failed to pay certain losses under a series of reinsurance contracts. Like California, the federal court in Alabama ruled that the tort of bad faith did not extend to reinsurance and dismissed the claims.
Continue reading “Tort of Bad Faith Does Not Apply to a Reinsurance Relationship”
