Reinsurer Accuses Insurer, Claims Handler of Mishandling, Misallocating Claims

BILLINGS, Mont. — A Bermuda-based reinsurer has accused an insurer and claims adjuster of mishandling and/or misallocating claims prior to the inception of portfolio transfer agreements pursuant to which the reinsurer agreed to cover the losses.

In an Aug. 28 complaint filed in the U.S. District Court for the District of Montana, Pallas Reinsurance Company Ltd. seeks damages for breach of contract and a declaratory judgment that it has no obligation to reinsure or otherwise pay for claims that were improperly allocated to policy periods covered by the loss portfolio transfer agreements.

Preferred Contractors Insurance Co. and Pacific Re …