Iowa Insurer Settles Breach of Contract, Fraud Claims Against Reinsurance Broker

DES MOINES, Iowa — GuideOne Insurance Co. has settled its lawsuit accusing a reinsurance broker of failing to obtain sufficient reinsurance coverage for a policy GuideOne issued, causing the insurer to sustain significant economic losses when a claim was filed under the policy.

In a Dec. 27 stipulation of dismissal filed in the U.S. District Court for the Southern District of Iowa, GuideOne Insurance Co.’s claims against Howden Reinsurance Brokers Ltd. were dismissed with prejudice, with the exception of GuideOne’s “reserved right to pursue recovery against Howden for any shortfall in recovery under applicable reinsurance certificates.”

GuideOne and Howden …