Extra-Contractual Claims Against Reinsurer Barred Under Texas Law, Federal Judge Rules

GALVESTON, Texas — A federal judge has dismissed a cedent’s extra-contractual claims against American National Insurance Co. (ANIC)’s in a lawsuit accusing the reinsurer of wrongly denying a reinsurance claim for reimbursement of a patient’s heart transplant hospital care.

On Sept. 29, Judge Jeffrey V. Brown of the U.S. District Court for the Southern District of Texas agreed with a magistrate judge that Section 493.055 of the Texas Insurance Code precludes such claims against a reinsurer.

Plaintiff Health First Health Plans Inc. provided an HMO plan to a Medicare patient (Doe Patient) who visited University of Chicago Medical Center for …