Breach of Contract Claim Proceeds Against Applied Underwriters Reinsurer in Neb. Federal Court

OMAHA, Neb. — A Nebraska federal judge has refused to dismiss a breach of contract claim asserted against Applied Underwriters Captive Risk Assurance Company Inc. (AUCRA) in connection with a reinsurance participation agreement issued to a policyholder as part of Applied Underwriters Inc.’s workers’ compensation program.

In the May 2 order, Judge Brian C. Buescher of the U.S. District Court for the District of Nebraska found the policyholder sufficiently alleged that AUCRA breached the RPA by significantly raising the ultimate projected claims cost without explanation.

However, the judge dismissed the breach of contract as to the remaining defendants because they …