4th Cir. Reinstates Claim Against Bank in Reinsurance Trust Account Dispute

RICHMOND, Va. — A federal appellate panel has vacated part of a lower court's judgment issued in favor of U.S. Bank National Association in a dispute over proceeds in a reinsurance trust account, finding it breached its duty to ensure that the assets were in the proper form before accepting them for deposit.

In an Aug. 29 opinion, the 4th Circuit U.S. Court of Appeals panel concluded that the Bank breached its trust agreement with Accident Insurance Company Inc. (AIC) by accepting deposit of nearly $9.4 million in Destra Targeted Income Unit Investment Trust securities, because those assets required consent …