John Hancock Sued in Unicover Scandal

Credit General Insurance Co. has filed suit against John Hancock Financial Services Inc. seeking $10 million in compensatory damages for past-due claim payments from John Hancock as well as a plea for $560 million in punitive damages. John Hancock earlier this month said that it expects to take a $135 million charge for its involvement in buy-down reinsurance programs. All of this reinsurance action that we have been reporting over the past year and a half centers around Unicover Managers Inc., which moved $2.6 billion worth of workers' comp reinsurance premium to seven large life insure...