Judge Told $1 Million Reinsurance Commissions Lawsuit Should Proceed

HARRISBURG, Pa. — A reciprocal insurance exchange is urging a New York federal judge to refuse to dismiss its lawsuit accusing reinsurance intermediary Guy Carpenter & Company LLC (GC) of wrongfully deducting more than $1 million from a fiduciary account, arguing that it has successfully pled a breach of contract claim.

In a June 18 reply filed before Judge Mary Kay Vyskocil of the U.S. District Court for the Southern District of New York, Housing and Redevelopment Insurance Exchange (HARIE) says it has adequately alleged that GC breached the parties’ Reinsurance Intermediary Authorization (RIA) by withdrawing the funds to pay …