General Reinsurance Urges Ala. Federal Judge to Dismiss Self-Insured Fund’s Lawsuit

MONTGOMERY, Ala. — General Reinsurance Corp. is urging an Alabama federal judge to dismiss a lawsuit accusing it of wrongly refusing to pay $1.2 million in billings submitted by a self-insured workers’ compensation fund, arguing the bad faith claim is barred under state law.

In an Aug. 25 reply filed before Judge Myron H. Thompson of the U.S. District Court for the Middle District of Alabama, GRC contends that its relationship with the Alabama Self Insured Workers Compensation Fund is one that is between an insurer and an excess insurer; therefore, the bad faith claim is prohibited.

The Fund provides …