WASHINGTON, D.C. — While the U.S. government contracted to purchase annuities to make future, monthly and periodic lump-sum payments under a settlement agreement, the government did not guarantee that it would make the future payments in the event of an insurer’s insolvency, a judge in the U.S. Court of Federal Claims held April 21 (William T. Hendrickson and Patricia Hendrickson v. The United States, No. 15-1406C, Fed. Clms, 2017 U.S. Claims LEXIS 369).
CHICAGO — A mortgage insurance reinsurer told a federal court in Illinois on April 5 that it is not the party responsible for disclosing information to mortgagees as required by the Real Estate Settlement Procedures Act (RESPA) (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.).
CONCORD, N.H. — Two insurers on April 10 stated their positions in a New Hampshire court that a settlement between an insolvent insurer’s liquidator and a manufacturer dealing with asbestos claims does not affect their claims against the liquidation estate (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack Co.).
FRANKFORT, Ky. — A federal judge in Kentucky on March 31 remanded a suit to state court because the parties accused of breaching their fiduciary duty to an insolvent insurer are not diverse (Jeff Gaither, Deputy Liquidator of Kentucky Health Cooperative, Inc. v. Beam Partners, LLC, et al., No. 16-cv-00094, E.D. Ky., 2017 U.S. Dist. LEXIS 48995).
LAS VEGAS — The receiver of an insolvent insurer reported to a Nevada court on Feb. 15 that the receivership estate does not have enough assets to fully pay claims against the estate and owes money to certain London-based reinsurers (State of Nevada, ex rel. Commissioner of Insurance, in His Official Capacity as Statutory Receiver for Delinquent Domestic Insurer v. Professional Aviation Insurance Reciprocal, a Nevada Domiciled Reciprocal Captive Insurance Company, No. A-700829-p, Nev. Cir., Clark Co.).
COLUMBIA, S.C. — The liquidator of an insolvent insurer sued the United States in a federal court in South Carolina on April 12, alleging that the government’s actions to recover $37 million from the insolvent insurer are wrongful and contrary to one of the president’s executive orders (Raymond G. Farmer, in his capacity as Liquidator of Consumbers’ Choice Health Insurance Company, et al. v. The United States of America, et al., No. 17-cv-00956, D. S.C.).
LOS ANGELES — A California judge on April 5 authorized the liquidator of an insolvent insurer to pay $5 million in early access distributions to states’ insurance guaranty associations that have been paying claims brought by the insolvent insurer’s policyholders (Insurance Commissioner of the State of California v. SeeChange Health Insurance Company, No. BS152302, Calif. Super., Los Angeles Co.).
NEW HAVEN, Conn. — The clerk of a federal court in Connecticut on April 3 notified an insurer and an insolvent reinsurer that they must explain their inaction regarding a suit or the suit will be dismissed (Select Insurance Company v. Excalibur Reinsurance Corporation, f/k/a PMA Capital Insurance Company, No. 15-cv-00715, D. Conn.).
NEW YORK — A New York justice on April 6 issued an order to show cause, asking for input regarding the request by the head of the state’s insurance regulatory body for an order creating an ancillary receivership of an insolvent California insurer (In the Matter of the Application of Maria T. Vullo, Superintendent of Financial Services of the State of New York, for an Order of Appointment as Ancillary Receiver of CastlePoint National Insurance Company, No. 153214/2017, N.Y. Sup., New York Co.).
TALLAHASSEE, Fla. — A Florida judge on March 2 ordered the closing of the receivership proceeding of an insurer that was found insolvent in 2007 (In re: The Receivership of Vanguard Fire and Casualty Company, a Florida corporation, No. 2007-CA-0186, Fla. Cir., 2nd Cir., Leon Co.).
CONCORD, N.H. — The liquidator of an insolvent insurer asked a New Hampshire court on March 30 to approve a $10 million settlement between the liquidator and a manufacturing company that has had asbestos-related claims brought against it (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack Co.).
NEW YORK — A New York court on March 28 issued an order to show cause why a property and casualty insurer that has a large negative surplus should not be placed into liquidation (In the Matter of the Application of Maria T. Vullo, Superintendent of Financial Services of the State of New York, for an order to take possession and liquidation of the business and affairs of Fiduciary Insurance Company of America, No. 703264/2017, N.Y. Sup., Queens Co.).
NEW ORLEANS — An insured created a genuine issue of material fact regarding whether she waived uninsured/underinsured motorist (UM) coverage under an insurance policy issued by an insolvent insurer, a Louisiana appeals panel held April 5 (Brayan Orellana, et al. v. John Doe, et al., No. 2016-CA-0537, La. App., 4th Cir., 2017 La. App. LEXIS 587).
CHICAGO — A trial judge properly invoked collateral estoppel to deny a motion to compel arbitration filed by an assigned entity to an insolvent insurer’s reinsurance contract, an Illinois appeals panel ruled March 31 (Pine Top Receivables of Illinois LLC v. Transfercom Ltd., No. 1-16-1781, Ill. App., 6th Div., 2017 Ill. App. LEXIS 196).
TALLAHASSEE, Fla. — A Florida judge on Feb. 23 approved the final claims report of an insolvent insurer and ordered the termination of the insurer’s liquidation proceeding that had begun in 2011 (In Re: Southern Eagle Insurance Company, No. 2011-CA-3392, Fla. Cir., 2nd Cir., Leon Co.).
CONCORD, N.H. — The liquidator of an insolvent insurer on March 23 reported to a New Hampshire court more than $1 million in recommended reinsurance allowances for verified losses (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Super., Merrimack Co.).
AUSTIN, Texas — A Texas judge on March 20 issued an order for a pair of preneed funeral insurers to show cause why they should not be enjoined from pursuing causes of actions that allegedly belong to the liquidator of an insolvent insurer (The State of Texas v. Memorial Service Life Insurance Company, et al., No. D-1-GV-08-000945, Texas 250th Dist., Travis Co.).
ATLANTA — An insurer asked a federal court in Georgia on Feb. 21 for oral argument on its motion for judgment on the pleadings, stating that oral argument would clarify the issues surrounding its assertions that it is not responsible for certain workers’ compensation claims that it says happened in a state where it did not offer policies (Georgia Insurers Insolvency Pool v. Sussex Insurance Co., No. 16-cv-03975, N.D. Ga.).
PITTSBURGH — A Pennsylvania Superior Court panel on March 21 vacated a trial court finding that a $1 million default judgment claim against the state’s insurance guarantor was time-barred (James Green v. Pennsylvania Property and Casualty Insurance Guaranty Association, No. 1204 WDA 2015, Pa. Super., 2017 Pa. Super. LEXIS 185).
CHICAGO — An Illinois judge on March 31 ordered the end of the rehabilitation of a workers’ compensation trust at the request of the state’s director of insurance (In the Matter of the Rehabilitation of Illinois State Bowling Proprietors’ & recreational Industry Workers’ Compensation Trust, No. 11 CH 36870, Ill. Cir., Cook Co.).