Texas Federal Judge Dismisses Benefits Group’s Suit Against Zurich; Finds Claims are Unripe

DALLAS — A Texas federal judge has dismissed a benefits group’s coverage action against Zurich American Insurance Co., finding the claim is not ripe because the action for which defense and indemnity is sought has not yet been filed.

In a Jan. 15 order, Chief Judge Sidney A. Fitzwater of the U.S. District Court for the Northern District of Texas explained that without an underlying lawsuit, there is no third-party pleading on which the court can base its determination of Zurich’s coverage obligations.

American Construction Benefits Group provided reinsurance to its member company, J.D. Abrams L.P. ACBG obtained this reinsurance …