Mealey's Insurance Insolvency

  • January 23, 2020

    Reinsurers Oppose Motion To Alter Ruling Sending $150M Loss Case To Arbitration

    SAN JUAN, Puerto Rico — Reinsurers in Jan. 21 opposition briefs argue that a Puerto Rico federal judge should deny an insolvent insurer’s liquidator motion to alter a decision sending a $150 million hurricane loss case to arbitration because there was no manifest error with the ruling (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).

  • January 22, 2020

    DOJ Updates Judge In SEC’s Case Over Schemes To Defraud Insurers, Reinsurance Trusts

    NEW YORK — The U.S. Department of Justice wrote to a New York federal judge on Jan. 17 updating him on the status of pending criminal proceedings that served as the reasons for a stay of the Securities and Exchange Commission’s lawsuit alleging that two individuals “perpetrated multiple schemes to defraud their advisory clients, which were insurance companies and reinsurance trusts” (United States v. Alexander C. Burns, et al., No. 18-9477, S.D. N.Y.).

  • January 22, 2020

    Judge Gives Insurer’s Liquidator Extension To Investigate Allegations

    SAN JUAN, Puerto Rico — A federal judge in Puerto Rico on Jan. 21 granted an extension of time for the liquidator of an insolvent insurer to investigate the insurer’s allegations of fraud and misrepresentations and an insured’s counterclaim for improper refusal to pay a claim (Integrand Assurance Co. v. Puma Energy Caribe, LLC, No. 19-1195, D. Puerto Rico).

  • January 17, 2020

    Government Seeks To Overturn IRS Claim Ruling In Insurer’s Chapter 7 Proceeding

    WILMINGTON, Del. — The U.S. government argues in a Jan. 15 appellant brief that a Delaware federal court should reverse a bankruptcy court’s order granting an objection raised by the Chapter 7 trustee for an insurer and its subsidiaries over a claim made by the Internal Revenue Service and remand so that the entire IRS claim will be given administrative priority (In re Affirmative Insurance Holdings, Inc., et al.; United States of America v. Don A. Beskrone, Chapter 7 Trustee, 19-2034, D. Del.).

  • January 17, 2020

    Insurer’s Liquidator Asks Guaranty Associations For Status Of Early Access

    HARRISBURG, Pa. — The liquidator of Senior American Insurance Co. (SAIC) submitted a report on Dec. 12 to a Pennsylvania trial court to inform all interested parties, including state insurance guaranty associations, of the status of early access considerations in the insurer’s estate (Jessica K. Altman v. Senior American Insurance Co., No. 1 SAI 2018, Pa. Cmwlth.).

  • January 17, 2020

    California Judge Approves Final $80M Distribution, Closes Insurer’s Estate

    LOS ANGELES — A California judge on Dec. 4 approved the state’s insurance commissioner’s application for a final distribution of approximately $80 million to occur by July 1 and to close the estate of Executive Life Insurance Co. (ELIC) (Insurance Commissioner of the State of California v. Executive Life Insurance Co., No.BS 006912,Calif. Super., Los Angeles Co.).

  • January 16, 2020

    Judge Dismisses Party From Runoff Insurer’s Third-Party Aiding, Abetting Claims

    NEW YORK — A New York federal judge on Jan. 13 dismissed a third-party defendant from a runoff insurer’s allegations of aiding and abetting in a Ponzi-like scheme where fraudulent misrepresentations were made to gain investment control over $320 million of the runoff insurer’s reserves (In re Platinum-Beechwood litigation, No. 18-6658; Senior Health Insurance Company of Pennsylvania v. PB Investment Holdings Ltd., et al., No. 18-12018, S.D. N.Y.).

  • January 16, 2020

    Judge Remands Insolvent Insurer’s Liquidator’s Breach Of Fiduciary Duty Case

    SALT LAKE CITY — A federal judge in Utah on Jan. 13 remanded to the liquidation court an insolvent health insurer’s liquidator’s breach of fiduciary and negligence lawsuit against the insurer’s executives because the executives failed to establish that the case necessarily raises or involves a substantial issue of federal law for purposes of jurisdiction (Stillman Consulting Services, LLC v. Shaun Greene, et al., No. 19-668, D. Utah, 2020 U.S. Dist. LEXIS 6274).

  • January 15, 2020

    Judge Denies Sanctions Against Hedge Fund Liquidators’ Counsel In Fraud Case

    NEW YORK — While hedge fund liquidators’ counsel “acted in blatant disregard” in an opposition brief to a corporate insider’s motion to dismiss claims concerning the hedge fund’s misuse and mismanagement, a New York federal judge on Jan. 13 denied monetary sanctions on “the possibility that counsel were simply carried away by overzealousness rather than acting in bad faith” (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y., 2020 U.S. Dist. LEXIS 5676).

  • January 14, 2020

    Judge Declines To Exclude Opinions On Attorney Fees In Insurers’ Receiver’s Award

    ST. LOUIS — A Missouri federal judge on Jan. 9 refused to bar opinions on the reasonableness of requested legal fees made by insolvent funeral insurers’ receiver and state insurance guaranty associations in a dispute regarding allegations over the mishandling of the insurers’ funds (Jo Ann Howard & Associates P.C., et al. v. J. Douglas Cassity, et al., No. 09-01252, E.D. Mo.).

  • January 13, 2020

    Bankruptcy Judge Closes Irish Reinsurer’s Chapter 15 Case Over $1B Deficit

    NEW YORK — A New York federal bankruptcy judge on Jan. 13 closed an Irish reinsurer’s bankruptcy proceeding that recognized a foreign main liquidation proceeding concerning an alleged $1 billion deficit (In re Ballantyne Re Plc, Chapter 15, No. 19-11490, S.D. N.Y. Bkcy.).

  • January 13, 2020

    Insurers Dismiss Investment Company From Third-Party Case Over Fraud Scheme

    NEW YORK — Insurers on Jan. 10 told a New York federal court that they are voluntarily stipulating to the dismissal of an investment company from their third-party lawsuit, which arises out of a dispute originally filed by a receiver seeking redress for damages from of a “massive fraudulent scheme” involving hedge funds (In re Platinum-Beechwood Litigation, No. 18-6658, Washington National Insurance Co., et al. v. Mark Nordlicht, et al., No. 18-12018, S.D. N.Y.).

  • January 09, 2020

    Liquidator Seeks Approval On Insolvent Insurer’s $4.8M In Undisputed Claims

    HARRISBURG, Pa. — The liquidator for Healthcare Providers Insurance Exchange (HPIX) on Jan. 7 filed an application seeking an order from a Pennsylvania court approving a report and recommendations on undisputed claims for a total amount of $4.8 million in 2019 (In re:  Healthcare Providers Insurance Exchange, in liquidation, No. 1 HPI 2017, Pa. Cmwlth.).

  • January 09, 2020

    Runoff Insurer Appeals To 2nd Circuit Orders On Fee, Expense Advancements

    NEW YORK — A runoff insurer on Dec. 19 appealed to the Second Circuit U.S. Court of Appeals four orders dealing with the advancement of fees and expenses under investment management agreements (IMAs) for third-party actions arising out of the runoff insurer’s initial fraud lawsuit over the mismanagement and misuse of $320 million (B Asset Manager L.P., et al. v. Senior Health Insurance Company of Pennsylvania, No. 19-4239, 2nd Cir.).

  • January 06, 2020

    Judge Dismisses Partial Claims In 2 Cases Involving Runoff Insurer Against Corporate Insider

    NEW YORK — In two separate matters against a defendant, an alleged corporate insider, over misuse and mismanagement in a hedge fund scheme, a federal judge in New York on Jan. 2 dismissed hedge fund liquidators’ claims for civil conspiracy and violation of civil Racketeer Influenced and Corrupt Organization Act and dismissed a runoff insurer’s third-party claims for civil conspiracy and unjust enrichment (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936; Melanie L. Cyganowski, et al. v. Beechwood Re Ltd., et al., No. 18-12018, S.D. N.Y., 2019 U.S. Dist. LEXIS 223443).

  • January 02, 2020

    Liquidators Appeal Dismissal Of Claims Over Offset Under ACA Reinsurance Program

    WASHINGTON, D.C. — The liquidators for an insolvent insurer gave notice on Dec. 23 that they are appealing a U.S. Court of Federal Claims judge’s dismissal of their state law claims against the U.S. government over violation of South Carolina insurance law following the government’s offset of $36 million under the reinsurance program of the Patient Protection and Affordable Care Act (ACA) (Raymond G. Farmer, et al. v. The United States, No. 18-1484, Fed. Clms.).

  • December 31, 2019

    Judge Dismisses Insured’s Third-Party Complaint Against Reinsurers

    SAN JUAN, Puerto Rico — A federal judge in Puerto Rico on Dec. 27 dismissed an insured’s third-party complaint against reinsurers regarding allegations of breaches to reinsurance agreements and denied the insured’s motion to dismiss an insolvent insurer’s main action against the insured (Integrand Assurance Co. v. Puma Energy Caribe, LLC; Puma Energy Caribe, LLC v. Everest Reinsurance Co., et al., No. 19-1195, D. Puerto Rico, 2019 U.S. Dist. LEXIS 221766).

  • December 31, 2019

    Judge Denies Liquidator’s Bid To Stay Arbitration With Reinsurers Over $150M Loss

    SAN JUAN, Puerto Rico — Without explanation, a Puerto Rico federal judge on Dec. 26 denied an insolvent insurer’s liquidator’s motion alter or amend a ruling in order to stay arbitration proceedings in a case over $150 million in losses from two hurricanes against its reinsurers (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).

  • December 23, 2019

    Insurers Dismiss Investment Bank From Third-Party Case Over Fraudulent Scheme

    NEW YORK — Insurers in a Dec. 20 stipulation of dismissal tell a New York federal court that they voluntarily dismiss third-party claims against a multinational investment bank and financial services company in a dispute arising out of a receiver’s lawsuit seeking redress for damages from of a “massive fraudulent scheme” involving hedge funds (In re Platinum-Beechwood Litigation, No. 18-6658, Washington National Insurance Co., et al. v. Mark Nordlicht, et al., No. 18-12018, S.D. N.Y.).

  • December 23, 2019

    Liquidator Seeks Stay Of Arbitration With Reinsurers Over $150M Hurricane Loss

    SAN JUAN, Puerto Rico — An insolvent insurer’s liquidator in a Dec. 21 motion asks that a Puerto Rico federal judge alter or amend his ruling to stay arbitration proceedings in a case over $150 million in losses from two hurricanes against its reinsurers until a stay in the insurer’s liquidation order is lifted (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).