Mealey's Insurance Insolvency

  • August 15, 2017

    Tennessee Insurance Guaranty Association Seeks Remand Of Reimbursement Suit

    NASHVILLE, Tenn. — The Tennessee Insurance Guaranty Association (TIGA) argues in an Aug. 14 brief that a Tennessee federal court should remand its reimbursement dispute 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.).

  • August 15, 2017

    Judge Terminates Policy Coverage In SeniorSure Healthplan Receivership

    OKLAHOMA CITY — An Oklahoma judge on Aug. 10 terminated policy coverage and authorized the return of unearned premiums to insureds in the receivership of SeniorSure Healthplan Inc. (State of Oklahoma, ex rel. John D. Doak v. SeniorSure Healthplan Inc., No. CJ-2017-3547, Okla. Dist., Okla. Co.).

  • August 15, 2017

    Trust Bank Seeks Lift Of Stay In Insurer’s Receivership, Seeks Preliminary Injunction

    BOISE, Idaho — A trust bank on Aug. 14 moved for an order in an Idaho federal court to lift a stay pending an insurer’s receivership proceedings and for a preliminary injunction, arguing that the receiver has ignored a summary judgment ruling for more than two years and recommended that the insured take nothing (Idaho Trust Bank v. BancInsure Inc., et al., No. 12-00032, D. Idaho).

  • August 14, 2017

    Judge Approves Payment Of Reinsurance To Insured In Insurer’s Liquidation

    HARRISBURG, Pa. — In the liquidation of Reliance Insurance Co., a Pennsylvania trial judge on Aug. 9 approved a direct payment of $269,341 in proceeds by a guarantor of a reinsurer to an insured (In re:  Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

  • August 11, 2017

    Trial Judge Closes Estate Of Florida Workers’ Compensation Fund

    TALLAHASSEE, Fla. — A Florida trial judge ordered the closure of the receivership for Florida Workers’ Compensation Fund (FWCF) on June 27 and ordered the receiver to retain $570,625.45 as a reserve for “wind up” expenses (In Re: Receivership of Florida Workers’ Compensation Fund, No. 1998-CA-3962, Fla. Cir., Leon Co.).

  • August 9, 2017

    Panel: Assignee’s Breach Of Contract Suit Against Reinsurer Is Untimely

    CHICAGO — A breach of contract lawsuit filed by an assignee of certain reinsurance receivables rights from an insolvent insurer was untimely, the Seventh Circuit U.S. Court of Appeals affirmed Aug. 7, finding that 215 Illinois Insurance Code Statute 5/206, 215 ILCS 5/206, does not provide that a liquidator may wait until the end to net the debits and credits (Pine Top Receivables of Illinois, LLC v. Banco De Seguros Del Estado, No. 16-3499, 7th Cir., 2017 U.S. App. LEXIS 14492).

  • August 1, 2017

    Justice Places Fiduciary Insurance Company Of America Into Liquidation

    JAMAICA, N.Y. — A New York justice on July 25 ordered Fiduciary Insurance Company of America to be placed into liquidation and named the state’s financial services superintendent as liquidator (In the matter of the application of Maria T. Vullo, Superintendent of Financial Services of New York for an order to take possession and liquidate Fiduciary Insurance Company of America, No. 703264/2017, N.Y. Sup., Queens Co.).

  • July 31, 2017

    Judge Closes Estate Of HomeWise Preferred Insurance Company

    TALLAHASSEE, Fla. — A Florida judge on June 27 directed the final discharge and authorized the destruction of obsolete records in the receivership of HomeWise Preferred Insurance Co., thus, effectively closing the insurer’s estate (In re: Receivership of HomeWise Preferred Insurance Co., No. 2011-CA-2404, Fla. Cir., 2nd Jud., Leon Co.).

  • July 31, 2017

    Judge Puts An End To Atlantic Preferred Insurance’s Liquidation

    TALLAHASSEE, Fla. — A Florida trial judge closed the estate of Atlantic Preferred Insurance Co. Inc. on June 7, directing final discharge and authorizing destruction of obsolete records in the insurer’s liquidation (In re Atlantic Preferred Insurance Company Inc., No. 2006-CA-001083, Fla. Cir., 2nd Cir., Leon Co.).

  • July 27, 2017

    Oklahoma Judge Puts SeniorSure Healthplan Into Receivership

    OKLAHOMA CITY — An Oklahoma judge on June 30 ordered SeniorSure Healthplan Inc. into receivership and named the state’s insurance commissioner as receiver (State of Oklahoma, ex rel. John D. Doak v. SeniorSure Healthplan Inc., No. CJ-2017-3547, Okla. Dist., Okla. Co.).

  • July 27, 2017

    Judge Approves Financial Report, Administration Costs In Liquidation Of Insurer

    SAN FRANCISCO — In the liquidation proceedings of CastlePoint National Insurance Co., a California trial judge on July 18 approved and ratified a financial report and expenses of administration totaling $7.8 million concerning the insurer’s period of conservation (Dave Jones v. CastlePoint National Insurance Co., No. CPF-16-515183, Calif. Super., San Francisco Co.).

  • July 27, 2017

    Oklahoma Judge Approves Claims Evaluation Report In Insurer’s Liquidation

    OKLAHOMA CITY — An Oklahoma judge on July 14 approved a sixth report on the claims evaluation and request for confirmation of the receiver’s recommendations in the liquidation of Driver’s Insurance Co. (State of Oklahoma, ex rel., John D. Doak v. Driver’s Insurance Co., No. CJ-2013-694, Okla. Dist., Oklahoma Co.).

  • July 27, 2017

    Insurer’s Liquidator’s Suit Should Be Arbitrated, Services Provider Asserts

    CINCINNATI — A lawsuit filed by an insolvent insurer’s liquidator against an administrative services provider over its work for the insurer should be arbitrated, the provider argues in a June 29 brief to the Sixth Circuit U.S. Court of Appeals, saying that the McCarran-Ferguson Act does not reverse-preempt the Federal Arbitration Act (FAA) (Nancy G. Atkins, liquidator of Kentucky Health Cooperative Inc. v. CGI Technologies and Solutions Inc., No. 17-5506, 6th Cir.).

  • July 26, 2017

    Judge Approves Reinsurer’s Direct Payment To Insured In Reliance’s Liquidation

    HARRISBURG, Pa. — A Pennsylvania judge on July 25 approved a direct payment of reinsurance by a reinsurer to an insured in the liquidation of Reliance Insurance Co. (In re:  Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

  • July 21, 2017

    Government Says Failed ACA Insurer Should File Case In Federal Claims Court

    COLUMBIA, S.C. — A failed Patient Protection and Affordable Care Act (ACA) co-operative insurer’s liquidator should file his lawsuit challenging a federal loan repayment demand in the U.S. Court of Federal Claims, the government says in a July 19 motion filed in South Carolina federal court (Raymond G. Farmer v. United States of America, et al., No. 17-cv-00956, D. S.C.).

  • July 21, 2017

    Workers’ Comp Insurer: Discovery Should Be Limited In 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, the workers’ compensation insurer argues in a June 27 filing in Georgia federal court that its proposed case management approach should be granted because limited discovery “will suffice to uncover” the facts of the case (Georgia Insurers Insolvency Pool v. Sussex Insurance Co., No. 16-cv-03975, N.D. Ga.).

  • July 21, 2017

    Liquidator Applies For Direct Payment Of Reinsurance To Insured

    HARRISBURG, Pa. — Reliance Insurance Co.’s liquidator on July 20 sought the approval of a Pennsylvania court for a direct payment of $269,341 in proceeds by a guarantor of a reinsurer to an insured (In re:  Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

  • July 21, 2017

    Home’s Liquidator Seeks Approval Of Asbestos Settlements For $16M

    CONCORD, N.H. — The liquidator for The Home Insurance Co. on June 27 asked a New Hampshire to approve two settlements totaling more than $16 million to resolve asbestos claims against insureds of seven insurance policies (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).

  • July 20, 2017

    Judge Declines To Allow Amendment To Add LIGA To Personal Injury Lawsuit

    NEW ORLEANS — A Louisiana federal judge on July 19 refused to allow two insureds leave to amend their complaint to add Louisiana Insurance Guaranty Association (LIGA) as a defendant in substitute for an insolvent insurer in their personal injury lawsuit (Sherry Landry, et al. v. Circle K Stores Inc., et al., No. 16-15705, E.D. La., 2017 U.S. Dist. LEXIS 111906).

  • July 19, 2017

    Reliance Liquidator Seeks Approval Of Reinsurance Direct Payment To Insured

    HARRISBURG, Pa. — The liquidator of Reliance Insurance Co. in a July 5 application seeks the approval of on a Pennsylvania court for a direct payment of reinsurance by an reinsurer to an insured (In re:  Reliance Insurance Co. in Liquidation, No. 1 REL 2001, Pa. Cmwlth.).