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Mealey's Insurance Insolvency

  • October 18, 2017

    Panel Affirms Denial Of Disability Benefits Under Insolvent Insurer’s Policy

    SALT LAKE CITY — An accident did not cause a worker’s degenerative arthritis, an Utah appeals panel ruled Oct. 13, declining to disturb the denial of the worker’s permanent partial disability (PPD) compensation under an insolvent insurer’s policy (Raymond M. Snyder v. Labor Commission, et al., No. 20160822-CA, Utah App., 2017 Utah App. LEXIS 197).

  • October 18, 2017

    Judge Approves Insurer’s Liquidator’s Report On Allowed, Disallowed Claims

    HARRISBURG, Pa. — In the liquidation of Reliance Insurance Co., a Pennsylvania trial judge on Oct. 4 approved the liquidator’s report and recommendations on guaranty association (GA) notices of determination (NODs) through July 31, 2017, for disallowed and allowed claims (In re:  Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

  • October 17, 2017

    Government: Jurisdiction Lacking In Liquidators’ Suit Over Reinsurance Funds

    COLUMBIA, S.C. — The U.S. government says in its Sept. 26 reply brief in a South Carolina federal court that liquidators for a failed South Carolina Patient Protection and Affordable Care Act (ACA) co-operative insurer failed to establish jurisdiction in their lawsuit alleging improper withholding of reinsurance payments from and setting off of debts owed by the government (Raymond G. Farmer, et al. v. United States of America, et al., No. 17-00956, D. S.C.).

  • October 16, 2017

    Panel: Michigan Insurance Guaranty Association Failed To Pay Settlement Agreement

    LANSING, Mich. — The Michigan Property & Casualty Guaranty Association (MPCIGA) could not raise any valid defense as to why it wrongfully failed to pay an amount owed to an estate by an insolvent insurer, a Michigan appeals panel ruled Oct. 12, affirming summary disposition to the estate (Dorothy Hassan v. Michigan Property & Casualty Guaranty Association, No. 332738, Mich. App., 2017 Mich. App. LEXIS 1593).

  • October 16, 2017

    Panel: Environmental Claim To Insolvent Insurer Is Barred By Res Judicata

    NEW YORK — A New York appeals court affirmed on Oct. 12 that an insured’s environmental claim submitted to an insolvent insurer is barred by res judicata and collateral estoppel, based on prior rulings on the same claim and issues (Northern States Power Co. v. Maria T. Vullo, No. 41294/86, N.Y. App. Div., 1st Dept., 2017 N.Y. App. Div. LEXIS 7195).

  • October 10, 2017

    CIGA Appeals Judgment On Reimbursement Sought Against It For Workers’ Comp Claims

    LOS ANGELES — The California Insurance Guarantee Association (CIGA) on Oct. 9 cross-appealed to the Ninth Circuit U.S. Court of Appeals challenging a ruling vacating and setting aside reimbursement demands made to it under workers’ compensation insurance policies (California Insurance Guarantee Association v. Don J. Wright, et al., No. 15-01113, C.D. Calif.).

  • October 10, 2017

    Workers’ Comp Insurer Offers Discovery Plan In Suit With Insolvent Insurer

    ATLANTA — A workers’ compensation insurer proposes a stipulated discovery plan and scheduling order on Oct. 9 with the Georgia federal court in a dispute over whether its policies insured certain staffing companies for claims also tendered to an insolvent insurer (Georgia Insurers Insolvency Pool v. Sussex Insurance Co., No. 16-03975, N.D. Ga.).

  • October 5, 2017

    Reinsurer Argues Dispute With Insolvent Insurer Must Be Arbitrated Or Transferred

    AUSTIN, Texas — A New Zealand reinsurer argues in a Sept. 12 reply brief that a Texas federal court should transfer venue or compel arbitration of a reinsurance agreement dispute with an insolvent insurer because a breach of contract claim is subject to an arbitration clause (Gramercy Insurance Co. v. Contractor’s Bonding Ltd., No. 17-723, W.D. Texas).

  • October 4, 2017

    Federal Judge Remands Tennessee Insurance Guaranty Association Reimbursement Suit

    NASHVILLE, Tenn. — A Tennessee federal judge on Sept. 25 remanded a reimbursement dispute filed by the Tennessee Insurance Guaranty Association (TIGA) over a workers’ compensation claim against book publishers because diversity jurisdiction is not present (Tennessee Insurance Guaranty Association v. Penguin Random House LLC, et al., No. 17-1070, M.D. Tenn., 2017 U.S. Dist. LEXIS 158988).

  • October 4, 2017

    Panel: Kentucky Insurance Guaranty Association Liable For Miner’s Black Lung Benefits

    CINCINNATI — The Kentucky Insurance Guaranty Association (KIGA) should provide benefits under the Black Lung Benefits Act to a disabled miner now that a mine operator and its insurer are both insolvent, the Sixth Circuit U.S. Court of Appeals affirmed Sept. 29 (Island Fork Construction v. Jimmy Bowling, No. 16-4319, 6th Cir., 2017 U.S. App. LEXIS 18891).

  • October 3, 2017

    Judge: Breach Of Duty Claim As To Funeral Trusts With Insolvent Insurers Is Barred

    ST. LOUIS — A claim for determination of rights in and representation for the merchandise and services trust and a petition for a restitutionary award against trustees for breaching trustee duties relating to preneed funeral and cemetery trusts under policies with insolvent insurers are barred by the doctrine of res judicata, a Missouri federal judge ruled Sept. 28 (Winner Road Properties LLC v. BMO Harris Bank, N.A., No. 16-1395, E.D. Mo., 2017 U.S. Dist. LEXIS 161300).

  • September 29, 2017

    Judge Refuses To Dismiss Recovery Claim On Settlement With State Guaranty Association

    COLUMBIA, S.C. — A South Carolina federal judge on Sept. 20 denied a request to dismiss an insurer’s claim seeking recovery of a portion of a settlement with the North Carolina Insurance Guaranty Association (NCIGA) in correspondence with below-deductible obligations under insurance policies (Companion Property and Casualty Insurance Co. v. Charles David Wood Jr., et al., No. 17-00514, D. S.C., 2017 U.S. Dist. LEXIS 152688).

  • September 27, 2017

    Panel: Denied Motorist Coverage Meets Definition Of Uninsured Under Insolvent Insurer’s Policy

    INDIANAPOLIS — A vehicle involved in a car accident that has liability insurance but was denied coverage meets the definition of uninsured motor vehicle under an insolvent insurer’s policy, an Indiana appeals panel ruled Sept. 25 (Indiana Insurance Guaranty Association v. Carlos A. Smith, No. 71A03-1703-CT-610, Ind. App., 2017 Ind. App. LEXIS 403).

  • September 21, 2017

    Insolvent Insurers’ Receiver Seeks Clarification On Panel’s Trust Law Remedies Ruling

    ST. LOUIS — In a dispute over the mishandling of funds belonging to insolvent funeral insurers, a receiver and state guaranty associations petitioned for panel rehearing on Sept. 14 so that the Eighth Circuit U.S. Court of Appeals can clarify that it was not attempting to limit trust law remedies available to the trial court on remand (Jo Ann Howard and Associates, P.C., et al. v. J. Douglas Cassity, et al., Nos. 15-3872 & 15-3878, 8th Cir., 2017 U.S. App. LEXIS 15621).

  • September 21, 2017

    New Hampshire Justice Approves Home’s Liquidator's $16M Asbestos Settlements

    CONCORD, N.H. — A New Hampshire justice on Aug. 22 approved two settlements totaling more than $16 million to resolve asbestos claims against insureds under seven insurance policies issued by an insolvent insurer (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).

  • September 21, 2017

    Federal Judge Denies Limiting Discovery In Workers’ Comp Suit With Insolvent Insurer

    ATLANTA — In a dispute over whether workers’ compensation policies insured certain staffing companies for claims also tendered to an insolvent insurer, a Georgia federal judge on Sept. 20 denied a proposed case management approach for limited discovery (Georgia Insurers Insolvency Pool v. Sussex Insurance Co., No. 16-cv-03975, N.D. Ga.).

  • September 19, 2017

    Reinsurer Says It And Home’s Liquidator Agree To Stipulation In Breach Of Contract Suit

    NEW YORK — A reinsurer on Sept. 8 wrote to a New York federal court advising it that the reinsurer and the liquidator of The Home Insurance Co. have agreed on a stipulation proposed to address claims and other issues in a dispute over reinsurance proceeds allegedly owed to the insurer’s estate (Roger A. Sevigny v. Trygvesta Forsikring A/S, Trygvesta Forsikring A/S v. Cerberus Holding Company, LLC., No. 16-04874, S.D. N.Y.).

  • September 19, 2017

    Insurer’s Liquidators Oppose Dismissal Of Withholding Reinsurance Funds Claims

    COLUMBIA, S.C. — Liquidators for a failed South Carolina Patient Protection and Affordable Care Act (ACA) co-operative insurer in a Sept. 5 brief in South Carolina federal court oppose the U.S. government’s motion to dismiss their lawsuit alleging the improper withholding of reinsurance payments from and setting off debts owed by the government (Raymond G. Farmer, et al. v. United States of America, et al., No. 17-00956, D. S.C.).

  • September 19, 2017

    Michigan High Court Sends Dispute With Insolvent Insurer Back For Reconsideration

    LANSING, Mich. — The Michigan Supreme Court on Sept. 12 vacated an appeals court’s decision finding that a trial court erred in not considering deposition testimony in determining whether a genuine issue of material fact existed in a coverage dispute against an insolvent insurer over personal injury protection (PIP) benefits (The Detroit Medical Center v. Michigan Property & Casualty Guaranty Association, et al., No. 154363, Mich. Sup., 2017 Mich. LEXIS 1622).

  • September 19, 2017

    New Hampshire Justice Approves Home’s Liquidator’s Settlement With Insured

    CONCORD, N.H. — A New Hampshire justice on Sept. 3 approved a settlement agreement of $178,545 between the liquidator for The Home Insurance Co. and an insured (In the matter of the liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).