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Mealey's Insurance Insolvency

  • September 17, 2020

    Insurer's Liquidators Ask U.S. High Court To Hear Case Over Arbitration Issue

    WASHINGTON, D.C. — The liquidator and special deputy liquidator of an insolvent health insurer on Aug. 28 asked the U.S. Supreme Court to hear their case on whether they should be compelled to arbitrate common-law tort claims against an actuarial firm based upon an arbitration provision in a preinsolvency agreement between the insurer and the firm (Doug Ommen, et al. v. Milliman, Inc., et al., No. 20-249, U.S. Sup., 2020 U.S. S. CT. BRIEFS LEXIS 2654).

  • September 17, 2020

    U.S. High Court Asked To Hear Arbitration Issue Over Insurer Rehabilitator's Claim

    WASHINGTON, D.C. — An actuarial services company on Sept. 3 asked the U.S. Supreme Court to take up its case on whether the Louisiana insurance commissioner, as rehabilitator for a health insurance cooperative, can pursue a professional negligence suit in court or is bound by an arbitration clause in an agreement between it and the cooperative (Milliman, Inc. v. James J. Donelon, No. 20-299, U.S. Sup., 2020 U.S. S. CT. BRIEFS LEXIS 2728).

  • September 14, 2020

    Complaint:  Insurer's Plan Of Rehabilitation Alters Insureds' Rates, Benefits

    BATON ROUGE, La. — Louisiana's insurance commissioner on Sept. 11 filed a complaint in Louisiana federal court seeking a declaratory judgment that the rehabilitator for Senior Health Insurance Company of Pennsylvania (SHIP) cannot alter, without his approval, the rates and benefits for SHIP's Louisiana policyholders (James J. Donelon v. Jessica K. Altman, No. 20-604, M.D. La.).

  • September 10, 2020

    Justice Asks Interested Parties To Show Cause On Insurer's Liquidation

    NEW YORK — A New York justice on Sept. 4 ordered interested parties to provide any reasons on why OneTitle National Guaranty Co. Inc. should not be placed into liquidation and the state's superintendent of financial services appointed as the insurer's liquidator (In matter of OneTitle National Guaranty Company, Inc., No. 451834/2020, N.Y. Sup., New York Co.).

  • September 10, 2020

    Delaware High Court Denies Insurers' Appeal Of Ruling In Reinsurer's Rehabilitation

    WILMINGTON, Del. — The Delaware Supreme Court on Sept. 4 denied life insurers' appeals over efforts in a reinsurer's rehabilitation to obtain offsets or recoupment of claim payments and reinsurance premiums under a settlement agreement because the insurers could still recover on their unpaid claims as part of the rehabilitation process (Protective Life Insurance Company, et al. v. Trinidad Navarro, Nos. 217, 2020 & 218, 2020, Del. Sup., 2020 Del. LEXIS 300).

  • September 10, 2020

    Breach Of Contract, Bad Faith Counterclaims Filed Against Insolvent Insurer

    ELIZABETH CITY, N.C. — Parties to a loan and security agreement on Sept. 4 filed counterclaims against an insurer, which is in rehabilitation, for breach of contract, bad faith and breach of fiduciary duty in a North Carolina federal court case over the insurer's efforts to recover $45,675,960 under the agreement based upon a borrower's default  (Colorado Bankers Life Insurance Company v. Summerville Asset Management, LLC, et al., No. 20-432, E.D. N.C.).

  • September 09, 2020

    Florida High Court Denies Review Over Attorney Fees Case Between Insured, FIGA

    TALLAHASSEE, Fla. — The Florida Supreme Court, without explanation, on Sept. 4 declined to exercise jurisdiction over an insured's sinkhole claim dispute with the Florida Insurance Guaranty Association (FIGA), substituting for an insolvent insurer, with regard to a lower court's application of a 2016 decision to the issue of attorney fees and costs (Phylis Heid v. Florida Insurance Guaranty Association, No. SC20-912, Fla. Sup., 2020 Fla. LEXIS 1481).

  • September 04, 2020

    Receiver Seeks $1M From Insurer For Settlement Of Suit Against Captive Manager

    NEW HAVEN, Conn. — The receiver of an insolvent insurer on Sept. 3 filed a complaint in Connecticut federal court seeking to recover $1 million from Allied World Surplus Lines Insurance Co. from the insolvent insurer's settlement of negligence allegations against a captive manager, insured by Allied World, regarding services that caused the insurer's liquidation (Trinidad Navarro v. Allied World Surplus Lines Insurance Company, No. 20-1305, D. Conn.).

  • September 03, 2020

    Insurer's Liquidator Agrees To Arbitration With Reinsurers Of $150M Hurricane Loss Case

    BOSTON — Integrand Assurance Co.'s liquidator on Aug. 11 dismissed an appeal with the First Circuit U.S. Court of Appeals and agreed to arbitrate with reinsurers a $150 million hurricane loss dispute (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 20-1534, 1st Cir.).

  • August 31, 2020

    Platinum Former Member Cross-Claims In Hedge Funds Collapse Litigation

    NEW YORK — A former member of Platinum Management (NY) LLC filed an amended answer and cross-claims on Aug. 28 for breach of fiduciary duty against defendants in a New York federal court lawsuit brought by the liquidators of two hedge funds regarding the collapse of the funds as a result of a number of schemes (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.).

  • August 28, 2020

    McDonald's, Franchisees Seek Coverage For Suit Disputing Safe Work Environment

    CHICAGO — McDonald's Corp. and former and current franchise owners on Aug. 27 sued their insurer in a federal court in Illinois for breach of contract and declaratory relief, seeking coverage for an underlying class action injunction alleging that they are taking inadequate steps to contain COVID-19 in the workplace (McDonald's Corporation, et al. v. Austin Mutual Insurance Company, No. 20-05057, N.D. Ill.).

  • August 26, 2020

    Judge Issues Sentences Against 2 Businessmen In Insurance Bribery Suit

    STATESVILLE, N.C. — A multinational investment company's founder and a company consultant have been sentenced for their roles in a $2 million bribery scheme involving the state's insurance commissioner and a request to remove the public official overseeing the regulation of the one businessman's insurance companies, according an Aug. 19 press release from the U.S. Department of Justice (United States v. Greg E. Lindberg, et al., No. 19-CR-00022, W.D. N.C.).

  • August 26, 2020

    Insolvent Insurers' Trustee Seeks To Make $49.4M Distribution

    LOS ANGELES — California's insurance commissioner as trustee for three insurance trusts on Aug. 10 asked a California trial court for permission to pay additional sums of $49.4 million to creditors, noting that "repayment of creditors is a key goal of any receivership" (Ricardo Lara v. Mission Insurance Company, et al., No. 572-724, Calif. Super., Los Angeles Co.).

  • August 26, 2020

    Insurer's Liquidator Seeks Final Distribution Of $2.9M To Claimants

    HONOLULU — A hearing was held Aug. 12 in a Hawaii state court on a request by the liquidator of Family Health Hawaii (FHH) to make a final distribution of $2,962,687 to claimants (Colin M. Hayashida v. Family Health Hawaii, No. 1SP161000086, Hawaii 1st Cir.).

  • August 25, 2020

    N.C. High Court Denies Review Of Ruling That NCIGA Had Right To Seek Reimbursement

    RALEIGH, N.C. — The North Carolina Supreme Court on Aug. 12 denied review of a ruling that the North Carolina Insurance Guaranty Association (NCIGA) had statutory authority "to step into the shoes" of an insolvent insurer and be subrogated to seek reimbursement from a regional worker staffing company over a policy's deductible amount (North Carolina Insurance Guaranty Association v. Weathersfield Management, LLC, No. 468P19, N.C. Sup., 2020 N.C. LEXIS 748).

  • August 25, 2020

    Justice Orders Alliance National Insurance Company Into Liquidation

    MINEOLA, N.Y. — Alliance National Insurance Co. (ANIC) was placed into liquidation on Aug. 21 by a New York justice, and the state's superintendent of Financial Services was named as the liquidator (In re Alliance National Insurance Company, No. 607845/2020, N.Y. Sup., Nassau Co.).

  • August 25, 2020

    Debtor Seeks Further Delay Of Asbestos Insurance Coverage Actions

    NEW YORK — Chapter 11 debtor The Fairbanks Co. on Aug. 20 asked a New York federal judge to continue to abide by a stay of litigation in two declaratory judgment actions with insurers over coverage for asbestos claims as it presses on with negotiations on a consensual plan of reorganization (The Fairbanks Company v. National Union Fire Insurance Company of Pittsburgh, et al., No. 15-1141, Liberty Mutual Insurance Company v. The Fairbanks Company, No. 13-3755, S.D. N.Y.).

  • August 24, 2020

    COMMENTARY: Covid-19 Related Business Interruption Coverage Claims In The Age Of Zoom

    By Scott M. Seaman and Judith A. Selby

  • August 20, 2020

    COMMENTARY: Direct Evidence Of Loss Or Damage May Be Unnecessary To Obtain Coverage For Losses Due To COVID-19

    By Syed S. Ahmad and Michael L. Huggins

  • August 24, 2020

    Parties Seek Stay Of Briefing In Insurer's Redress Suit In Light Of Liquidation

    NEW YORK — New York Superintendent of Financial Services Linda Lacewell wrote to a New York federal court on Aug. 21 asking for an insurer's lawsuit seeking redress for violation of its equal protection rights to be held in abeyance until a pending liquidation proceeding against the insurer is resolved (Park Insurance Co. v. Maria T. Vullo, et al., No. 18-9628, S.D. N.Y.).