Mealey's Insurance Insolvency

  • February 23, 2017

    Judge Gives OK To Workers’ Compensation Reimbursement Agreement

    CHICAGO — An Illinois judge on Feb. 15 approved an agreement between an insolvent insurer, a town and a trust fund regarding the reimbursement of certain workers’ compensation supplemental cost-of-living payments (People of the State of Illinois, ex rel. Andrew Boron, Director of Insurance of the State of Illinois v. Lumbermens Mutual Casualty Co., No. 12-24227, Ill. Cir., Cook Co.).

  • February 22, 2017

    Conservator Asks Court To Convert Conservatorship To Liquidation

    SAN FRANCISCO — California’s insurance commissioner asked one of his state’s courts on Feb. 17 to declare an insurer insolvent and order its liquidation (Dave Jones, Insurance Commissioner of the State of California v. CastlePoint National Insurance Company, and DOES 1-50, No. CPF-16-515183, Calif. Super., San Francisco Co.).

  • February 21, 2017

    Judge Approves Reinsurance Commutation Agreement For Insolvent Insurer

    CHICAGO — An Illinois judge on Feb. 16 approved the commutation of certain reinsurance contracts covering third-party construction defect claims in an agreement between a reinsurer and an insolvent insurer (In the matter of the liquidation of Legion Indemnity Co., No. 02 CH 06695, Ill. Cir., Cook Co., Chanc. Div.).

  • February 21, 2017

    Liquidator Asks Court To Approve Multiple Insurance Guarantor Claims

    CONCORD, N.H. — The liquidator of an insolvent insurer on Feb. 2 asked a New Hampshire court to approve his recommendations for allowance of claims to various states’ insurance guaranty associations and a number of reinsurers (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack Co.).

  • February 21, 2017

    Liquidator Wants Reinsurance Commutation Agreement Approved

    CONCORD, N.H. — The liquidator of an insolvent insurer on Feb. 6 asked a New Hampshire court to approve a confidential reinsurance commutation agreement with two London based reinsurers (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack Co.).

  • February 21, 2017

    Liquidator Wants Approval Of $4.5 Million Reinsurance Commutation Agreement

    CHICAGO — The liquidator of an insolvent insurer on Feb. 2 asked an Illinois court to approve a $4.5 million reinsurance commutation agreement releasing a reinsurer from its obligations related to construction defect claims from homeowners associations (In the matter of the liquidation of Legion Indemnity Co., No. 02 CH 06695, Ill. Cir., Cook Co., Chanc. Div.).

  • February 21, 2017

    Liquidator Wants To Settle With Workers’ Compensation Trust Fund

    CHICAGO — The liquidator of a group of insolvent insurers on Feb. 2 asked an Illinois court to approve a settlement regarding supplemental workers’ compensation payments made by the insolvent insurer (People of the State of Illinois, ex rel. Andrew Boron, Director of Insurance of the State of Illinois v. Lumbermens Mutual Casualty Co., No. 12-24227, Ill. Cir., Cook Co.).

  • February 16, 2017

    Justice Approves Reinsurance Commutation Agreement For Insolvent Insurer

    CONCORD, N.H. — A New Hampshire justice on Feb. 10 approved an insolvent insurer’s reinsurance commutation agreement, which involves the insolvent insurer as both reinsurer and reinsured (In the Matter of the Liquidation of The Home Insurance Company, No. 03-E-0106, N.H. Sup., Merrimack Co.).

  • February 16, 2017

    Liquidator Of Insolvent ACA Insurer Wants Claims Appeal Examiner Applications

    NEW YORK — The liquidator of an insolvent insurer operated as a co-op under the Patient Protection and Affordable Care Act recently invited candidates for appointment of referees and medical claims examiners to review liquidation estate claim appeals (In the Matter of the Liquidation of Health Republic Insurance of New York, Corp., No. 450500/2016, N.Y. Sup., New York Co.).

  • February 15, 2017

    Judge Denies Objection, Says Magistrate Judge’s Discovery Order Was Proper

    SALT LAKE CITY — A federal judge in Utah on Feb. 13 denied an insolvent insurer’s objection to a magistrate judge’s order compelling discovery of certain categories of information sought by a group of the insolvent insurer’s former directors and officers (Western Insurance Company v. Dick L. Rottman, et al., No. 13-cv-00436, D. Utah, 2017 U.S. Dist. LEXIS 20709).

  • February 15, 2017

    Special Deputy Receiver Wants Disallowance Of Alleged Fire Loss Claim Finalized

    AUSTIN, Texas — The special deputy receiver (SDR) of an insolvent insurer on Feb. 8 asked a Texas court to make final the disallowance of a claim to replace an allegedly smoke-damaged carpet that the SDR says was damaged by normal use (The State of Texas and the Texas Department of Insurance v. Vesta Fire Insurance Corporation, et al., No. D-1-GN-002366, Texas Dist., Travis Co.).

  • February 13, 2017

    Panel Says Homeowner Sinkhole Claims Against Insolvent Insurer Are Timely

    DAYTONA BEACH, Fla. — A Florida appellate panel on Feb. 10 reversed and remanded a lower court order and found that certain statutes of limitations do not apply to a case filed against an insurer before it became insolvent (Patricia Morrison v. Homewise Preferred Insurance Company and Florida Insurance Guaranty Association, No. 5D15-4312, Fla. App., 5th Dist., 2017 Fla. App. LEXIS 1648).

  • February 9, 2017

    Judge Orders Former President Of Insolvent Insurer To Reveal His Assets

    RENO, Nev. — A Nevada judge on Feb. 2 ordered the former president of an insolvent insurer to appear before the court for the examination of his assets regarding an order that he return $48,000 to the insolvency estate (State of Nevada, ex rel. Commissioner of Insurance, in his Official Capacity as Statutory Receiver for Delinquent Domestic Insurer v. National Guaranty Insurance Company, a Nevada Property and Casualty Company, No. CV14-00807, Nev. Cir., Washoe Co.).

  • February 9, 2017

    Assignee Asks 7th Circuit To Reverse Lower Court Finding Regarding Timeliness

    CHICAGO — The assignee of certain reinsurance receivables rights challenging a lower court’s finding that its claims against a reinsurer are untimely told the Seventh Circuit U.S. Court of Appeals on Jan. 31 that the lower court erred, among other reasons, because it issued a summary judgment on allegedly disputed issues of material fact (Pine Top Receivables of Illinois, LLC v. Banco De Seguros Del Estado, No. 16-3499, 7th Cir.).

  • February 9, 2017

    Insurance Guarantor Waives Objection To Disallowance Of Claim

    AUSTIN, Texas — The Texas Property and Casualty Insurance Guaranty Association (TPCIGA) told a Texas court on Jan. 27 that it has no objections to the disallowance of a homeowner’s foundation damage claim against an insolvent insurer (The State of Texas and the Texas Department of Insurance v. Vesta Fire Insurance Corporation, et al., No. D-1-GN-002366, Texas Dist., Travis Co.).

  • February 9, 2017

    Judge Orders Liquidation, Names Georgia Insurance Commissioner Liquidator

    ATLANTA — A Georgia judge on Dec. 22 ordered the liquidation of an insurer that the judge said is in hazardous financial condition with a surplus below lawful levels (State of Georgia, Ex. Rel., Ralph T. Hudgens, Commissioner of Insurance of the State of Georgia v. Physicians’ Alliance Health Plan Trust, No 2016-cv-283517, Ga. Super., Fulton Co.).

  • February 8, 2017

    Judge Orders Liquidation Of ACA Health Care Provider

    TRENTON, N.J. — A New Jersey judge on Feb. 3 ordered a Patient Protection and Affordable Care Act (ACA) consumer-operated and oriented plan insurer’s liquidation and appointed the state’s insurance commissioner as liquidator (In the Matter of Freelancers Consumer Operated and Oriented Program of New Jersey d/b/a Health Republic Insurance of New Jersey, No. MCR-C-000063-16, N.J. Super., Mercer Co., Chanc. Div.).

  • February 8, 2017

    Justice Wants To Know If Liquidator Should Make Payments To Care Providers

    NEW YORK — A New York justice on Jan. 24 asked interested parties for input regarding whether the liquidator of an insolvent insurer should be allowed to make direct payments to out-of-network health providers instead of making the payment to policyholders (In the Matter of the Liquidation of Health Republic Insurance of New York, Corp., No. 450500/2016, N.Y. Sup., New York Co.).

  • February 7, 2017

    Liquidator Asks Court To Approve Direct Payments From Reinsurer To Insured

    HARRISBURG, Pa. — The liquidator of an insolvent insurer asked a Pennsylvania court on Feb. 3 to approve a cut-through arrangement by which a reinsurer will make direct payments to an insured, leaving the liquidation estate out of the transactions (In re:  Reliance Insurance Company in Liquidation, No. 1 REL 2001, Pa. Cmwlth.).

  • February 7, 2017

    Succession Of Illinois Acting Director Of Insurance Announced

    CHICAGO — The Illinois Department of Insurance announced Jan. 18 that it has a new acting director who has taken over as the rehabilitator or liquidator of a number of insolvent Illinois insurers (In the Matter of the Liquidation of The Administrative Employer Group, Inc., No. 07-CH-23319, In the Matter of the Liquidation of Affirmative Insurance Company, 15-CH-13718, In the Matter of the Liquidation of Lumbermens Mutual Casualty Company, No. 12-CH-24227, In the Matter of the Liquidation of Illinois Restaurant Risk Management Association, No. 11-CH-40307, In the Matter of the Rehabilitation of Illinois State Bowling Proprietors & Recreational Industry Workers’ Compensation Trust, No. 11-CH-36870, In the Matter of the Liquidation of Interstate Bankers Casualty Company, No. 14-CH-6395, In the Matter of the Liquidation of Land of Lincoln Mutual Health Insurance Co., No. 16-CH-09210, In the Matter of the Liquidation of Legion Indemnity Company, No. 02-CH-06695, In the Matter of the Rehabilitation of Millers Classified Insurance Company, No. 15-CH-00885, In the Matter of the Rehabilitation of Millers First Insurance Company, No. 12-CH-21255, In the Matter of the Rehabilitation of Polish Women’s Alliance of America, No. 14-CH-14340, In the Matter of the Liquidation of Reinsurance Company of America, No. 10-CH-06207, In the Matter of the Rehabilitation of Triad Guaranty Insurance Corporation and Triad Guaranty Assurance Corporation, No. 12-CH-43895, Ill. Cir., Cook Co., Chancery Div.).