Ala. Workers’ Comp Fund, Reinsurers Head to Mediation in $1.2M Dispute

MONTGOMERY, Ala. — An Alabama federal judge has administratively closed a lawsuit filed by a self-insured workers compensation fund against its reinsurers accusing them of breaching a reinsurance agreement by refusing to pay more than $1.2 million in reimbursement claims made under a policy issued in 1989.

In a May 4 order, Judge Myron H. Thompson of the U.S. District Court for the Middle District of Alabama explained that the parties are attempting to mediate the case.

The Alabama Self Insured Workers Compensation Fund accused General Reinsurance Corp. (GRC) and its subsidiary of intentionally concealing their intention to deviate from …