Reinsurer Accuses General Agent, Claims Adjuster of Conspiring to Under-Reserve Losses

SAN FRANCISCO — A reinsurer has sued a general agent and a claims adjuster in California federal court, accusing them of conspiring to under-reserve losses and loss adjustment expenses in order to avoid triggering reductions to their commissions as provided in a quota share reinsurance agreement.

In a Jan. 10 complaint filed in the U.S. District Court for the Northern District of California, Antares Reinsurance Company Ltd. alleges that rather than pay claims owed, NTA General Agency and Superior Risk Management Inc. (SRM) under-reserved the reinsurance claims and incurred relatively significant amounts to defend the claims rather than appropriately reserve …