Mealey's Insurance Insolvency

  • February 24, 2021

    Insurance Guaranty Fund Argues It Has Standing To Bring Medicare Statute Suit

    CHICAGO — In response to the acting secretary of Health and Human Services’ motion to dismiss, the Illinois Insurance Guaranty Fund (IIGF) argued Feb. 22 that it has standing to bring its lawsuit challenging reporting requirements under the federal Medicare Secondary Payer (MSP) statute and the Illinois federal court has subject matter jurisdiction to hear its lawsuit “because there is no further administrative procedure for IIGF to exhaust.”

  • February 22, 2021

    Personal Injury Claimant Opposes City Of Newark, Police Officers’ Motion To Dismiss

    NEWARK, N.J. — A plaintiff on Feb. 17 opposed the city of Newark, its public safety director and police officers’ motion to dismiss her personal injury lawsuit seeking damages caused by a police car chase that led to a collision two months after New Jersey Property-Liability Insurance Guaranty Association (NPLIGA) filed a cross-claim seeking contribution from the other defendants, arguing that her amended complaint sufficiently pleaded claims against the city and individual defendants in their personal capacities.

  • February 19, 2021

    Judge Allows Fraud, Negligent Misrepresentation Claims To Proceed In STOLI Dispute

    WILMINGTON, Del. — A Delaware judge on Feb. 15 denied a life insurer’s motion to dismiss fraud, negligent misrepresentation and return of premiums counterclaims brought by a securities intermediary in the insurer’s lawsuit arising from a stranger-originated life insurance policy that a receiver controlled following an investment fund’s Ponzi scheme that defrauded nine investors out of more than $800 million.

  • February 18, 2021

    North Carolina High Court Again Refuses Review In Workers’ Compensation Dispute

    RALEIGH, N.C. — The North Carolina Supreme Court on Feb. 3 declined to review a ruling that a workers’ compensation claim against the North Carolina Insurance Guaranty Association (NCIGA) arising from the insolvency of an insurer is barred by the Guaranty Act's bar date provision and/or statute of repose.

  • February 18, 2021

    Borrower, Agent Defend Dismissal Of $14.5M Suit Filed By Insurers In Rehabilitation

    RALEIGH, N.C. — A borrower and its agent filed separate replies in a North Carolina federal court on Jan. 4 defending their motions to dismiss a complaint filed by three insurers in rehabilitation seeking to recover $14.5 million from the borrower under a loan agreement for its alleged breach of contract in failing to make a first interest payment.

  • February 17, 2021

    Wealth Firms Defend Motions To Dismiss Suit Bought By Insurers In Rehabilitation

    RALEIGH, N.C. — Two wealth management firms with interests in a loan agreement on Jan. 4 filed separate replies in a North Carolina federal court defending their motions to dismiss a lawsuit brought by two insurers in rehabilitation seeking $12.5 million under the loan agreement after the insurers opposed their motion.

  • February 16, 2021

    Judge Remands State Insurance Guaranty’s Suit Against Workers’ Compensation Insurers

    RALEIGH, N.C. — A federal judge in North Carolina on Feb. 10 granted North Carolina Insurance Guaranty Association’s (NCIGA) motion to remand its declaratory judgment lawsuit seeking further administration and payment of seven workers' compensation insurance claims from two insurers, finding that the weight of authority holds that remand is necessary because NCIGA is an unincorporated association whose citizenship is that of its members.

  • February 08, 2021

    Delaware Judge Compels Discovery In Misconduct Suit Over Insolvent Insurer

    WILMINGTON, Del. — A Delaware judge on Feb. 4 granted equity investors’ motion to compel defendants to produce documents and responses to interrogatories in a dispute regarding alleged misconduct that caused injury to an insurer in liquidation.

  • February 08, 2021

    Parties: Insolvent Insurer Not Entitled To Recoup Settlement Funds

    LOUISVILLE, Ky. — Parties involved in a dispute arising from a $750,000 truck crash judgment jointly moved for approval of a settlement on Feb. 5, specifically seeking a finding that the settlement does not violate an injunction issued in a Nevada liquidation court and the insolvent insurer is not entitled to recoup any settlement funds paid.

  • February 04, 2021

    Liquidator Moves To Amend Complaint In Coverage Suit Over $21M Wrongful Acts Claim

    SIOUX FALLS, S.D. — Citing recent occurrences and circumstances, the liquidator of ReliaMax Surety Co. (RSC) on Feb. 2 moved to amend his amended complaint seeking a declaratory judgment that coverage exists under a claims-made excess insurance policy above a directors and officers (D&O) policy with regard to a $21 million wrongful acts claim.

  • February 02, 2021

    Amicus Curiae Says District Court Erred In Instructing Jury In Insurance Bribery Suit

    RICHMOND, Va. — The National Association of Criminal Defense Lawyers on Jan. 28 filed an amicus curiae brief in the Fourth Circuit U.S. Court of Appeals, contending that a district court erred in instructing a jury on a disputed element of a charge in a $2 million bribery scheme case that resulted in convictions against a multinational insurance and reinsurance management company’s founder and a company consultant.

  • February 01, 2021

    Insured Answers Suit After Magistrate Lifts Stay Following Liquidator’s Approval

    SAVANNAH, Ga. — An insured on Jan. 27 answered a commercial auto insurer’s amended complaint seeking a declaration that there is no coverage for the insured, its owners and one of its employees for an underlying $112,466.57 personal injury default judgment after a federal magistrate judge in Georgia lifted the stay on the declaratory judgment action following a status report that indicated that the insurer’s appointed liquidator authorized the lawsuit.

  • January 29, 2021

    HHS Acting Secretary: State Insurance Guaranty’s Medicare Lawsuit Should Be Dismissed

    RALEIGH, N.C. — The North Carolina Insurance Guaranty Association (NCIGA) has no standing, and a North Carolina federal court has no jurisdiction over a case seeking an interpretation of the provisions in a Medicare Secondary Payer (MSP) statute, the acting secretary of Health and Human Services and federal agencies argue in a Jan. 28 motion to dismiss.

  • January 29, 2021

    Hedge Fund Receiver Drops Appeal Over Alleged Aiding, Abetting Of Fraud Scheme

    NEW YORK — The Second Circuit U.S. Court of Appeals said on Jan. 28 that a hedge fund receiver withdrew her appeal of a ruling that an investment holding company did not aid and abet fraud with three investment management agreements (IMAs) involving a reinsurer, its related entities and Senior Health Insurance Company of Pennsylvania (SHIP).

  • January 28, 2021

    Insurer’s Rehabilitator Tells U.S. High Court:  Arbitration Clause Is Not Enforceable

    WASHINGTON, D.C. — The Louisiana Rehabilitation, Liquidation and Conservation Act, including its post-receivership venue provision, “regulates the business of insurance and prohibits the enforcement of any private forum selection clause,” including an arbitration clause at issue in a professional negligence suit against an actuarial services company, that “frustrates state insurance law,” the Louisiana insurance commissioner argues to the U.S. Supreme Court in a Jan. 27 opposition brief.

  • January 28, 2021

    HHS Acting Secretary Seeks To Dismiss Insurance Guaranty Fund’s Medicare Statute Suit

    CHICAGO — An Illinois federal court should dismiss the Illinois Insurance Guaranty Fund’s (IIGF) suit seeking an interpretation of the federal Medicare Secondary Payer (MSP) statute, the acting secretary of Health and Human Services argues in a Jan. 22 motion, because the IIGF’s suit is “untethered to allegations of injury, and so it lacks standing to sue.”

  • January 27, 2021

    Government Says It Can Set Off ACA Risk-Corridor Liabilities Against Insolvent Insurers

    WASHINGTON, D.C. — The U.S. Court of Federal Claims has jurisdiction to decide claims seeking setoffs of debts against risk-corridor liabilities owed to insolvent health insurers under the Patient Protection and Affordable Care Act (ACA) risk corridor, the U.S. government argues in a Jan. 22 opposition brief to a motion to dismiss, also noting its authority to recover interest owed on ACA debts.

  • January 26, 2021

    Scottish Holding Inc.’s Trustee Seeks Approval Of $26M Settlements

    WILMINGTON, Del. — The trustee for Scottish Holdings Inc. (SHI) and one of its subsidiaries filed separate motions on Jan. 22 requesting a Delaware bankruptcy judge’s approval of two settlements worth more than $26 million reached with beneficiaries of a trust agreement and a reinsurance agreement.

  • January 25, 2021

    Insured Asks Florida High Court To Review Denial Of Attorney Fees From FIGA

    TALLAHASSEE, Fla. — In a dispute over attorney fees, an insured in a Dec. 23 brief seeks Florida Supreme Court review of a lower appellate court’s decision that the Florida Insurance Guaranty Association Inc. (FIGA) is not responsible under a Florida statute for the fees because it never denied the insured’s hurricane damage claim before the insured pursued litigation.

  • January 22, 2021

    Justice Seeks Cause On Why Medical Malpractice Insurer’s Liquidation Should Not Be Closed

    NEW YORK — A New York justice asked interested parties on Dec. 8 to provide reasons on why she should not close the liquidation proceeding for Professional Liability Insurance Company of America (PLICA) as requested by the liquidator.