Reinsurer Obligated to Pay Share of $8 Million Underlying Settlement, Texas Federal Judge Rules

DALLAS — A Texas federal magistrate judge has awarded Unified Life Insurance Co. summary judgment in a dispute over whether its reinsurer is liable for a portion of an $8 million settlement of litigation involving unpaid medical claims, ruling that Unified provided timely notice of the underlying case to the reinsurer.

On March 29, Judge Rebecca Rutherford of the U.S. District Court for the Northern District of Texas further found that the reinsurer, United States Fire Insurance Co. (USF), is obligated to pay its portion of the $8 million class settlement based on its agreement to pay a proportional share …