Amerisure May Collect Attorney’s Fees From Global Re Upon Proof of Bad Faith, Ill. State Judge Rules

CHICAGO — An Illinois state judge has vacated his earlier ruling that Amerisure Mutual Insurance Co. is barred from collecting attorney’s fees for Global Reinsurance Company of America’s alleged bad faith denial of reinsurance coverage.

Judge Ronald Bartkowicz of the Cook County (Ill.) Circuit Court referred to a 1967 case in which New York’s highest court established a cause of action for extra-contractual damages from an insurer’s bad faith denial of coverage.

In 2001, Amerisure and Global Reinsurance Company of America entered into an umbrella quota share reinsurance agreement, under which Global agreed to reinsure a number of umbrella …