Munich Re Answers Cedents’ Counterclaims in Sexual Misconduct Reinsurance Action

FLINT, Mich. — Munich Reinsurance America Inc. has asserted several affirmative defenses to Veritas Insurance Co.’s counterclaims in a reinsurance action involving a $9.25 million settlement of sexual misconduct allegations filed against The University of Michigan.

In a Nov. 2 brief filed in the U.S. District Court for the Eastern District of Michigan, Munich Re contends it is not bound by Veritas’ coverage determinations, settlement decisions, or loss adjustments between Veritas and the university, and that the settlement payment and legal expenses are not covered under the reinsured policies.

Veritas Insurance Corp., the captive insurer for the Regents of The …