Risk and ReInsurance Solutions Corporation - RRISC Risk & Re-Insurance Solutions Corporation Court ruling for illegal practices

Aurora, Colorado 0 comments
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R+V brought an action seeking damages for conspiracy, and declarations that it was not bound by the addenda to the binding authorities and that the authority of the defendants to underwrite on its behalf had been effectively terminated when the binding authorities had been revoked.The Risk Group denied the claim and issued a counterclaim, contending that R+V had repudiated its obligations, but were unsuccessful.

The court found that the addenda and their terms were clearly to the disadvantage of R+V. The existence of the addenda had been deliberately concealed from R+V's management, employees and accountants, and false descriptions had been given of their content. Furthermore, the chief executive of the Risk Group had been aware that the senior underwriter was acting without authority, and in breach of his duty to R+V.

The Risk Group was ordered to pay the costs of R+V's claim and counterclaim.Two payments on account of costs were ordered in December 2004 and February 2005, neither of which had been complied with by the time of the hearing in November 2005.

Review about: Risc Insurance.

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