Mealey's Insurance Insolvency

  • March 24, 2017

    Liquidator Of Insolvent Insurers: Claims Against Reinsurer Are Sufficient

    CHICAGO — The liquidator of a pair of insolvent insurers told a federal court in Illinois on March 22 that the claims she brings against a mortgage insurance reinsurer are sufficient to survive a motion to dismiss (People of the State of Illinois, ex rel., Acting Director of Insurance, Anne Melissa Dowling v. HMC Reinsurance Company, a Vermont Corporation, No. 16-cv-08156, N.D. Ill.).

  • March 24, 2017

    Judge Says Special Deposit Cannot Be Used To Pay Guarantor Expenses

    CHICAGO — An Illinois judge on March 22 sustained an insurance guaranty association’s objection, finding that an insolvent insurer’s special deposit cannot be used to pay the guaranty association’s general administrative expenses (People of the State of Illinois, ex rel. Andrew Boron, Director of Insurance of the State of Illinois v. Lumbermens Mutual Casualty Co., No. 12-24227, Ill. Cir., Cook Co.).

  • March 23, 2017

    Florida Panel Affirms Court’s Refusal To Conduct New Appraisal In Wilma Suit

    MIAMI — A Florida appeals panel on March 22 held that an insured’s post-appraisal submission of increased costs in a Hurricane Wilma coverage dispute is not a legally sufficient basis to reopen the existing appraisal or conduct a new appraisal (Orlando Noa v. Florida Insurance Guaranty Association, No. 3D16-1367, Fla. App., 3rd Dist., 2017 Fla. App. LEXIS 3787).

  • March 23, 2017

    Services Provider: Liquidator Of Insolvent Insurer Is Subverting Court’s Powers

    FRANKFORT, Ky. — An insurance administrative services company asked a federal court in Kentucky on Feb. 22 to enjoin an insolvent insurer’s liquidator from bringing claims against it in an allegedly similar state court action (H. Brian Maynard, Liquidator of Kentucky Health Cooperative, Inc. v. CGI Technologies and Solutions, Inc., No. 16-cv-00037, E.D. Ky.).

  • March 23, 2017

    Justice Approves Reinsurance Commutation Agreement Of Unspecified Amount

    CONCORD, N.H. — A New Hampshire justice on March 13 approved a reinsurance commutation agreement between the liquidator of an insolvent insurer and two insolvent London-based reinsurers (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack Co.).

  • March 22, 2017

    Government: Jurisdiction Ruling Moots Liquidators’ Appeal In ACA Assets Case

    ST. LOUIS — A judge’s finding that she lacks jurisdiction over a suit involving the proper handling of Patient Protection and Affordable Care Act (ACA) assets moots an insolvent insurer’s liquidators’ interlocutory appeal challenging a ruling denying them a preliminary injunction, the government told the Eighth Circuit U.S. Court of Appeals on March 17 (Nick Gerhart, et al. v. United States Department of Health and Human Services, et al., No. 16-3477, 8th Cir.).

  • March 22, 2017

    Judge Finds Jurisdiction Lacking In Insolvent Insurer’s Suit Over ACA Payments

    ST. LOUIS — An insolvent insurer’s suit against the government over its handling of the Patient Protection and Affordable Care Act (ACA) risk corridor and how it offset debts properly belongs before the U.S. Court of Federal Claims, a federal judge in Iowa said March 17 in finding that she lacked jurisdiction and entering judgment (Nick Gerhart, et al. v. United States Department of Health and Human Services, et al., No. 16-151, S.D. Iowa, 2017 U.S. Dist. LEXIS 37620).

  • March 22, 2017

    Judge Agrees With Special Master, Finalizes Receivership Disallowance Of Claim

    AUSTIN, Texas — A Texas judge on March 20 approved an application by an insolvent insurer’s  special deputy receiver (SDR) and declared the disallowance of a certain house fire claim final (The State of Texas and the Texas Department of Insurance v. Vesta Fire Insurance Corporation, et al., No. D-1-GN-002366, Texas Dist., Travis Co.).

  • March 22, 2017

    Judge Approves Liquidator’s Report On Undisputed Claims

    HARRISBURG, Pa. — A Pennsylvania judge on March 13 approved the liquidator of an insolvent insurer’s report and recommendation and ordered that claimants are eligible to receive payment upon the next relevant distribution of liquidation estate assets (In re:  Legion Insurance Company [In Liquidation], No. 1 LEG 2002, Pa. Cmwlth.).

  • March 22, 2017

    Judge Approves Agreement That State Return Special Deposit To Liquidation Estate

    HARRISBURG, Pa. — A Pennsylvania judge on March 13 approved an agreement between the state’s insurance commissioner and her counterpart in New Mexico for the return of a statutory deposit that an insolvent insurer made in that state (In re:  Lincoln General Insurance Company In Liquidation, No. 1 LIN 2015, Pa. Cmwlth.).

  • March 20, 2017

    Michigan Judge Reopens Rehabilitation Proceeding After Closing It In Error

    MASON, Mich. — A Michigan judge on March 15 granted a rehabilitator’s petition and set aside an earlier final order closing a rehabilitation in error and ordered that the rehabilitation proceeding be reopened (Patrick McPharlin, Director of the Department of Insurance and Financial Services v. Affirmative Insurance Company of Michigan, No. 15-898-CR, Mich. Cir., Ingham Co.).

  • March 20, 2017

    Judge Orders Rehabilitation Of Insolvent Illinois Insurers

    CHICAGO — An Illinois judge on March 16 ordered the rehabilitation of a pair of insolvent insurers, noting that the insurers’ directors had consented to the rehabilitation (People of the State of Illinois, ex rel., Jennifer Hammer, Director of the Illinois Department of Insurance v .Public Service Insurance Company, an Illinois domestic stock insurance company, et al., No. 2017-CH-03790, Ill. Cir., Cook Co., Chanc. Div.).

  • March 20, 2017

    Federal Court Clerk Certifies Alleged Reinsurer Is In Default

    NEW YORK — The clerk of a federal court in New York on March 16 issued a certificate of default against a holding company that is allegedly responsible for obligations under certain facultative reinsurance contracts (Roger A. Sevigny, the Commissioner of Insurance of the State of New Hampshire, as Liquidator of The Home Insurance Company v. Trygvesta Forsikring A/S, as successor in interest to Skandinavia Insurance Company Ltd., Trygvesta Forsikring A/S v. Cerberus Holding Company, LLC., No. 16-cv-04874, S.D. N.Y.).

  • March 17, 2017

    Judge Authorizes Liquidator To Pay Portion Of Homeowner Class Claim

    CHICAGO — An Illinois judge on March 14 approved a liquidator’s recommendation of a payment to a class of homeowners that won a construction defect lawsuit against a group of developers insured by an insolvent insurer (In the matter of the liquidation of Legion Indemnity Co., No. 02 CH 06695, Ill. Cir., Cook Co., Chanc. Div.).

  • March 17, 2017

    Judge Approves Rate Of Pay For Liquidation Internal Auditor

    CHICAGO — An Illinois judge on March 16 approved the rate of compensation for an internal auditor of an insolvent insurer’s liquidation proceeding (People of the State of Illinois, ex rel. Andrew Boron, Director of Insurance of the State of Illinois v. Lumbermens Mutual Casualty Co., No. 12-24227, Ill. Cir., Cook Co.).

  • March 17, 2017

    Administrative Services Provider Wants Liquidator Enjoined From Suing It

    FRANKFORT, Ky. — An insurance administrative services company asked a federal court in Kentucky on Jan. 27 to enjoin the liquidator of an insolvent insurer from bringing claims against it in an allegedly duplicate suit (H. Brian Maynard, Liquidator of Kentucky Health Cooperative, Inc. v. CGI Technologies and Solutions, Inc., No. 16-cv-00037, E.D. Ky.).

  • March 17, 2017

    Liquidator Asks Court To Allow Insurance Guaranty Association To Keep Funds

    HARRISBURG, Pa. — The liquidator of an insolvent insurer asked a Pennsylvania court on March 10 to approve a proposal under which a different state’s insurance guaranty association will retain certain funds given to it by that state’s ancillary receiver so that the liquidator will not have to make future distributions to the association (In re:  Legion Insurance Company [In Liquidation], No. 1 LEG 2002, Pa. Cmwlth.).

  • March 17, 2017

    Judge Approves Final Notification Of Liquidation Status To Claimants

    HARRISBURG, Pa. — A Pennsylvania judge on March 9 authorized the liquidator of an insolvent insurer to notify claimants of the liquidation’s final accounting, distribution and discharge (In re:  First Sealord Surety, Inc., In Liquidation, No. 1 FSS 2012, Pa. Cmwlth.).

  • March 16, 2017

    Surety Obligates Itself To Pay Judgment To Liquidator In Reinsurance Dispute

    NEW YORK — A surety told a federal court in New York on Feb. 14 that it has agreed to obligate itself to cover the possible judgment of a breach of contract case brought against the reinsurer by the liquidator of an insolvent insurer (Roger A. Sevigny, the Commissioner of Insurance of the State of New Hampshire, as Liquidator of The Home Insurance Company v. Trygvesta Forsikring A/S, as successor in interest to Skandinavia Insurance Company Ltd., No. 16-cv-04874, S.D. N.Y.).

  • March 14, 2017

    Judge Approves Actions Of Special Deputy Receiver With Disallowance Of Claim

    AUSTIN, Texas — A Texas judge on March 2 approved the disallowance of a homeowner’s foundation damage claim filed with the estate of an insolvent insurer (The State of Texas and the Texas Department of Insurance v. Vesta Fire Insurance Corporation, et al., No. D-1-GN-002366, Texas Dist., Travis Co.).