Delaware’s business court upheld the state insurance commissioner’s liquidation plan for insolvent reinsurer Scottish Re US Inc., overruling objections from primary insurers and other stakeholders.
The objectors—mainly insurers that entered into reinsurance contracts with Scottish Re—failed to show that the liquidation procedures proposed by the insurance commissioner would be an abuse of discretion, the Delaware Chancery Court held in a Nov. 28 opinion.
Scottish Re operated as a reinsurer, selling coinsurance for accident and health, life, and annuity policies, as well as yearly renewable term reinsurance. It ceased writing new business in 2008, and its parent companies filed for bankruptcy ...