UMGA VS. GE RE:

Hidalgo County, Texas-based Underwriters MGA (UMGA), announced it filed a court petition to reclaim millions of dollars in revenues the company said it lost as a result of actions taken against it by General Electric Reinsurance Corporation. In a written statement, the company said it filed a second amended petition in the 370th Judicial District Court of Hidalgo County, asserting that beginning in October 2000 General Electric “pulled the plug” and refused to provide reinsurance it had promised to UMGA. According to UMGA, both UMGA and its Hispanic policyholders were injured when GE wrongfully withheld payment for their auto insurance claims. The lawsuit alleges UMGA and its Hispanic customers have been subjected to discrimination. In a separate motion, UMGA alleged that GE Reinsurance enlisted its agent and representative, State National Insurance Co. and State & County Mutual Fire Insurance Co., to act on its behalf by filing lawsuits against UMGA, causing further damage to UMGA and its Hispanic clients. The case is scheduled to go to trial in Hidalgo County, Texas, in August 2004.