Reliance, Lincoln National Unicover Involvement

Reliance Group Holdings Inc. (Reliance) has filed a fraud lawsuit against an insurance manager and intermediary Unicover Managers, Inc. (Unicover) for alleged insurance fraud that could cost Reliance $100 million. Reliance sued Unicover for 'substantial damages for fraud, misrepresentation, multiple breaches of fiduciary duty and misconduct' in its handling of a Workers Compensation insurance pool and subsequent reinsurance arrangements. Problems from business arranged by Unicover that emerged last spring have led to the unraveling of one of the largest reinsurance facilities in U.S. histo...