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Great American seeks to recoup defense costs in NTA commission dispute
The insurer filed suit in federal court on July 16, 2026, arguing its policies exclude claims tied to the return of commissions and similar expenses.
Great American E&S Insurance Company has gone to federal court to argue its professional liability policies do not cover a defense fight involving a California insurance agency accused of mishandling commissions in reinsurer lawsuits, and it is seeking reimbursement of defense costs already spent, Insurance Business reports.
According to the complaint filed July 16, 2026 in the US District Court for the Northern District of California, the underlying dispute is being litigated in Texas. Several reinsurers allege National Transportation Associates, which acted as a general agent, kept commissions and fees that should have been returned, with claims tied to the agency's loss ratio-based commission structure and allegations that NTA misrepresented facts related to loss performance to increase what it kept.
Great American says Exclusion F in its policies strips coverage for any claim involving the return of commissions, fees, costs, or expenses previously paid or retained. It also points to how NTA responded on an April 6, 2022 application, where NTA answered no to questions about recent claims and circumstances that could lead to one, even though Great American alleges a predecessor reinsurer had already demanded access to premium trust account records in November 2020.
Great American also disclosed that it wrote three professional liability policies for NTA between June 2022 and June 2025, each with a $5 million per-claim limit and a $5 million aggregate limit, and it is seeking a declaratory judgment plus reimbursement of its defense costs, according to the filing. The reinsurer demands cited in the complaint range from hundreds of thousands to more than $12.6 million, depending on the reinsurer, with Antares alleging more than $8 million.