United National Group, Ltd. announced that its subsidiary, Diamond State Insurance Company, has entered into a settlement with Bank of America, N.A. and Platinum Indemnity Limited relative to litigation pending in the United States District Court for the Southern District of New York.
Under the terms of the settlement, Diamond State will pay $17.85 million to Bank of America and provide other non-financial consideration to Bank of America and Platinum in exchange for a full and final release by Bank of America and Platinum, and other consideration, relative to their claims of approximately $29.0 million, plus interest in excess of $10.0 million and fees and costs, related to “facultative reinsurance policies” issued by Worldwide Weather Insurance Agency, and its principal Harold Mollin, purportedly on behalf of Diamond State.
As a result of the settlement, Diamond State has activated a pending arbitration against Partner Reinsurance Company, Ltd. and Partner Reinsurance Company of the U. S. seeking recovery under a reinsurance agreement covering business produced by Worldwide Weather Insurance Agency on a 100 percent basis with regard to the type of risk involved.
In addition, Diamond State is seeking indemnification and contribution from Partner Reinsurance Company of the U.S. because of its reported role in the appointment of Mollin and Worldwide Weather Insurance Agency.
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