U.S. Fire Answers Cedent’s Counterclaims in Texas Federal Reinsurance Action

DALLAS — United States Fire Insurance Co. has answered amended counterclaims in a Texas federal action in which it contends it has no obligation to pay toward an $8 million settlement of a class action filed against its cedent Unified Life Insurance Co.

In an Oct. 31 answer filed in the U.S. District Court for the Northern District of Texas, U.S. Fire flatly denied Unified’s allegations that it breached the terms of the reinsurance treaty by refusing to pay its proportionate share of the class settlement agreement and associated defense fees and costs.

Unified and various reinsurers, including U.S. …

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