Mealey's Insurance Insolvency

  • February 16, 2018

    Kaiser Gypsum Debtors Agree To Claim Amount In Insolvent Insurers’ Run-Off

    CHARLOTTE, N.C. — A North Carolina federal bankruptcy judge on Feb. 17 approved in a minute order a settlement between Chapter 11 debtors Kaiser Gypsum Co. Inc. and Hanson Permanente Cement Inc. and the joint scheme administrator for two insolvent British insurers, setting claim values for the debtors in the insurers’ run-off proceedings (In re Kaiser Gypsum Company, Inc., et al., No. 16-31602, W.D. N.C. Bkcy.).

  • February 13, 2018

    Panel: Auto Insurer Is Liable For Additional Insured’s PIP Benefits

    TRENTON, N.J. — An auto insurer is liable for personal injury protection (PIP) benefits for an unnamed additional insured under terms of a voided insurance contract, a New Jersey appeals panel affirmed Feb. 8 (Tyrone S. Henry Sr., et al. v. Santosh S. Bhowmik, et al., No. A-3331-15T4, N.J. Super., App. Div., 2018 N.J. Super. Unpub. LEXIS 286).

  • February 12, 2018

    6th Circuit Rejects Insurer’s Liquidator’s Reverse-Preemption Argument In Arbitration Suit

    CINCINNATI — In a dispute between an insolvent insurer’s liquidator and an administrative services provider over whether work for the insurer should be arbitrated, the Sixth Circuit U.S. Court of Appeals held Feb. 9 that the McCarran-Ferguson Act does not reverse-preempt the enforcement of a contractual arbitration clause under 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., 2018 U.S. App. LEXIS 3130).

  • February 9, 2018

    Pennsylvania Trial Judge Approves Final Accounting For First Sealord Surety Inc.

    HARRISBURG, Pa. — A final accounting and distributions of assets for the liquidation of First Sealord Surety Inc. was approved by a Pennsylvania judge on Dec. 6 (In re:  First Sealord Surety Inc. in liquidation, No. 1 FSS 2012, Pa. Cmwlth.).

  • February 9, 2018

    New York Court Issues Ancillary Receivership Against Guarantee Insurance Co.

    NEW YORK — A New York justice on Jan. 26 granted an order of ancillary receivership against Guarantee Insurance Co. and appointed the state’s superintendent of financial services as receiver (In the receivership of Guarantee Insurance Co., No. 453158/2017, N.Y. Sup., New York Co.).

  • February 9, 2018

    Pennsylvania Judge Orders Healthcare Providers Insurance Exchange Into Liquidation

    HARRISBURG, Pa. — Healthcare Providers Insurance Exchange (HPIX) was ordered into liquidation on Jan. 12 by a Pennsylvania trial judge, and the state’s insurance commissioner was appointed liquidator (Jessica K. Altman v. Healthcare Providers Insurance Exchange, No. 1 HPI 2017, Pa. Cmwlth.).

  • February 6, 2018

    Insurer, Bank Settle Dispute Over Reinsurance Funds Mishandling

    COLUMBIA, S.C. — An insurer and a bank filed a joint status report on Feb. 5 informing a South Carolina federal judge that they have reached a tentative settlement over accusations that the bank mishandled reinsurance funds (Companion Property and Casualty Insurance Co. v. U.S. Bank National Association v. Redwood Reinsurance Spc. Ltd., et al., No. 15-01300, D. S.C.).

  • February 6, 2018

    $750,000 For Claim In Insurer’s Liquidation Is Best Deal, Bestwall Says

    CHARLOTTE, N.C. — Chapter 11 debtor Bestwall LLC is willing to take $750,000 in cash now from a purchaser of a defunct insurer’s asbestos policy rather than wait for years to see if it can collect the policy’s remaining $3.75 million from the insurer’s liquidation proceedings, Bestwall says in a Feb. 1 motion in North Carolina federal bankruptcy court (In re Bestwall LLC, No. 17-31795, W.D. N.C. Bkcy.).

  • February 5, 2018

    Bankrupt Reinsurance, Insurance Provider Hit With Suit By Former Employees

    WILMINGTON, Del. — Former employees of a bankrupt insurance and reinsurance services company filed a putative class action complaint on Feb. 1 in the Delaware bankruptcy court, alleging that they were laid off without proper notice under the Workers’ Adjustment and Retraining Notice Act (WARN Act) (In re:  Patriot National Inc., et al., Chapter 11, No. 18-10189, Michelle L. Cole, et al. v. Patriot National Inc., et al., Adv. Pro. No. 18-5, D. Del. Bkcy.).

  • February 2, 2018

    Judge Rejects Defunct ACA Insurer’s Risk-Adjustment Program Challenge

    BOSTON — A now-defunct Patient Protection and Affordable Care Act (ACA) health insurer’s complaints about the law’s risk-adjustment program seek impermissible retroactive rule making or fail to allege that the original rules were arbitrary or capricious, a federal judge in Massachusetts held Jan. 30 (Minuteman Health Inc. v. United States Department of Health and Human Services, et al., No. 16-11570, D. Mass., 2018 U.S. Dist. LEXIS 14727).

  • February 1, 2018

    Pedestrian Sues New Jersey Insurance Guaranty Association For PIP Benefits

    NEWARK, N.J. — In a personal injury lawsuit, a pedestrian filed a complaint on Jan. 16 in a New Jersey state court alleging that the state’s insurance guaranty association is wrong to refuse him personal injury protection (PIP) benefits (Edward DeVaughn v. New Jersey Property-Liability Insurance Guaranty Association, No. ESX-L-000318-18, N.J. Super., Essex Co.).

  • February 1, 2018

    Pedestrian Seeks Benefits From New Jersey Insurance Guaranty Association

    NEWARK, N.J. — A pedestrian injured in a car accident filed a complaint on Jan. 2 in a New Jersey court against the state’s insurance guaranty association, seeking personal injury protection (PIP) benefits (Deborah Yarrell v. New Jersey Property-Liability Insurance Guaranty Association, No. ESX-L-000007-18, N.J. Super., Essex Co.).

  • January 31, 2018

    Reinsurance Firm Files Chapter 11 Bankruptcy With Plans To Restructure

    WILMINGTON, Del. — A reinsurance firm filed for Chapter 11 protection on Jan. 28 in the Delaware bankruptcy court with a plan to sell its equity free and clear of more than $30 million in interest liabilities (In re Scottish Holdings Inc., et al., No. 18-10160, D. Del. Bkcy.).

  • January 29, 2018

    Panel: New Jersey Insurance Guaranty Association Not Subject To Attorney Fees

    TRENTON, N.J. — The New Jersey Property-Liability Insurance Guaranty Association (NJPLIGA) is not subject to awards of attorney fees, a state appeals panel affirmed Jan. 26 because attorney fees are not a “covered claim” paid by the NJPLIGA (Rafaela A. Guichardo v. New Jersey Property-Liability Insurance Guaranty Association, No. A-4410-15T3, N.J. Super., App. Div., 2018 N.J. Super. Unpub. LEXIS 196).

  • January 25, 2018

    New Hampshire Judge Approves $42M Settlement Between Insolvent Insurer, Insured

    CONCORD, N.H. — A New Hampshire trial judge on Jan. 6 approved a $42 million settlement made by the liquidator of The Home Insurance Co. with an insured (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).

  • January 25, 2018

    Family Sues New Jersey Insurance Guaranty Association For Benefits

    NEWARK, N.J. — A New Jersey mother and her minor daughter filed a personal injury lawsuit on Jan. 22 against a driver and the state’s insurance guaranty association, alleging that they are entitled to uninsured motorist benefits for the driver’s negligence (Shamya Tillery, et al. v. Lynnes Nissan, et al., No. ESX-L-000497-18, N.J. Super., Essex Co.).

  • January 24, 2018

    Florida Judge Ends Southern Family Insurance Co.’s Receivership

    TALLAHASSEE, Fla. — A Florida trial judge closed the receivership for Southern Family Insurance Co. (SFIC) on Dec. 11 and approved the receiver’s discharge accounting statement (In re:  The receivership of Southern Family Insurance Co., No. 2006 CA 1060, Fla. Cir., Leon Co.).

  • January 24, 2018

    Trial Judge Approves Final Notices Of Determinations In Insurer’s Liquidation

    HARRISBURG, Pa. — A Pennsylvania trial judge on Jan. 17 approved a liquidator’s application on her recommendation of final life and health guaranty association (L&H GAs) omnibus notices of determinations (NODs) in Reliance Insurance Co.’s liquidation proceeding (In re:  Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

  • January 23, 2018

    Taxi Passenger Sues New Jersey Insurance Guaranty Association

    PATERSON, N.J. — A passenger in a car accident alleges in a Dec. 14 complaint that the New Jersey Property-Liability Insurance Guaranty Association (NJPLIGA) is responsible for her personal injuries (Rylent Lawrence v. The New Jersey Property-Liability Insurance Guaranty Association, et al., No. PAS-L-004066-17, N.J. Super., Passaic Co.).

  • January 23, 2018

    Panel Declines To Reopen Insurer’s Liquidation For Decades-Old Proofs Of Claim

    TRENTON, N.J. — A Michigan state road agency cannot reopen the liquidation of Integrity Insurance Co. to recover payouts from car accident claims, a New Jersey appeals panel affirmed Jan. 19, finding that the liquidation was properly finalized (In the matter of the liquidation of Integrity Insurance Co., No. A-3285-15T3, N.J. Super., App. Div., 2018 N.J. Super. Unpub. LEXIS 134).