Workers’ Comp Fund Says Bad Faith Claims Against Reinsurers Viable

MONTGOMERY, Ala. — The Alabama Self-Insured Workers Compensation Fund is urging an Alabama federal judge to deny motions to dismiss bad faith claims from an action against two reinsurers accused of wrongly refusing to pay $1.65 million in reinsurance billings.

In a May 24 motion filed before Chief Judge Emily C. Marks of the U.S. District Court for the Middle District of Alabama, the Fund argues that its bad faith claims against General Reinsurance Corp. (GRC) and General Insurance Co. (GIC) are viable because it is not an “insurer” as defined by the Alabama Insurance Code.

The Fund provides workers' …