Workers’ Comp Fund Asserts Fraud Claims Against Reinsurers in $1.65M Action

MONTGOMERY, Ala. — The Alabama Self-Insured Workers Compensation Fund has amended its complaint against two reinsurers a second time in a dispute involving $1.65 million in reinsurance billings, adding claims for fraudulent suppression and fraudulent misrepresentation.

In the amended pleading filed before Chief Judge Emily C. Marks of the U.S. District Court for the Middle District of Alabama, the Fund alleges that defendants General Reinsurance Corp. (GRC) and General Insurance Co. (GIC) failed to disclose that the Fund’s claims for reimbursement were inadequate or did not comply with the policy’s conditions, and that such nondisclosure was material.

The Fund provides …