Reinsurer Says Late Notice Relieves it of Paying Toward $8 Million Settlement of Action Against Life Insurer

DALLAS — United States Fire Insurance Co. has asked a Texas federal court to relieve it of any obligation to pay toward an $8 million settlement of a class action filed against its cedent Unified Life Insurance Co., arguing it was not timely notified of the action.

In an April 18 complaint filed in the U.S. District Court for the Northern District of Texas, U.S. Fire contends it was prejudiced by the late notice because it resulted in critical errors in the handling of the underlying action.

According to the complaint, Unified and various reinsurers, including U.S. Fire, entered an …