Article: JUDGE RULES AGAINST STATE IN CROWN LIFE REINSURANCE CASE / DECISION COULD HAVE NATIONAL RAMIFICATIONS, SAYS LITCHFIELD

Crown Life Insurance Co. of Toronto, Canada, has prevailed against the Oklahoma State Insurance Commissioner in a case that could have national reinsurance ramifications, according to C. Wayne Litchfield, Crown Life attorney.

U.S. District Judge Wayne Alley ruled that Crown Life was entitled to offset its reinsurance premiums and risk charges against the claims it was to pay to the insolvent United Equity Life InsuranceCo. of Oklahoma City.

In the ruling, made from the bench on May 19 in Oklahoma City, Judge Alley said the offset, or "netting," provision in a reinsurance agreement between United Equity and Crown Life is operative, even though United Equity - the ceding company - was ...

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