Wis. Federal Judge Dismisses Reinsurer’s Declaratory Judgment Action Without Prejudice

MADISON, Wis. — A Wisconsin federal judge has dismissed without prejudice an action in which a reinsurer seeks a declaration that it is not liable to defend or indemnify an insurance agent for claims arising from its alleged failure to procure sufficient coverage for its clients, noting that no claim has been made against the agent.

In an Aug. 4 order, Judge William M. Conley of the U.S. District Court for the Western District of Wisconsin explained that if a claim is filed against Donat Insurance Services LLC, the reinsurer, Republic-Franklin Insurance Co., may reopen the case.

Donat contracts with …