Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Swiss Reinsurance Unit Loses $3 Million Coverage Appeal

Aug. 4, 2022, 9:27 PM

A Swiss Reinsurance Company Ltd unit lost its $3 million coverage appeal after the Seventh Circuit rebuffed its argument that an insurance deductible frees it from coverage duty and makes its policyholder an insurer.

North American Elite Insurance Co. failed to point to any Illinois law that self-insured retention makes a policyholder shoulder a carrier’s coverage duty, the US Court of Appeals for the Seventh Circuit said Thursday. The insurer cannot take back its $3 million payment to Menard Inc., a Midwest home improvement retail chain, it said.

“Self insured-retention does not make a policyholder become an insurer,” the federal ...