We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Mealey's Insurance Insolvency

  • September 21, 2018

    Magistrate Judge Dismisses Case Against Insolvent Insurer Based On Settlement

    BOISE, Idaho — Pursuant to a settlement agreement, an Idaho federal magistrate judge on Sept. 18 dismissed with prejudice a trust bank’s wrongful acts lawsuit against an insolvent insurer (Idaho Trust Bank v. BancInsure Inc., et al., No. 12-00032, D. Idaho).

  • September 21, 2018

    Judge Issues Sanctions In Favor Of Insolvent Insurer In Tortious Interference Case

    DALLAS — In a tortious interference lawsuit, an insolvent insurer was granted sanctions by a Texas federal judge on Sept. 20 against a corporate defendant and reasonable attorney fees and costs for the defendant’s failure to respond to discovery requests (Lincoln General Insurance Co. v. James Thornton Maxwell, No. 16-3198, N.D. Texas, 2018 U.S. Dist. LEXIS 160740).

  • September 20, 2018

    Justice Asks Why Insurer’s Ancillary Receivership Should Not Be Closed

    NEW YORK — A New York justice on Aug. 29 asked policyholders, claimants, creditors and parties interested in the affairs of Guarantee Insurance Co. to show cause as to why the insurer’s ancillary receivership proceeding should not be closed (In the matter of the ancillary receivership of Guarantee Insurance Co., No. 453158/2017, N.Y. Sup., New York Co.).

  • September 20, 2018

    Judge Sets Trial Schedule For Run-Off Insurer’s Case Against Reinsurers, Owners

    NEW YORK — A New York federal judge on Sept. 7 told an insurer in run-off and reinsurers that they should be ready by April 2019 for trial of the insurer’s allegations that the reinsurers, their affiliates and their current and former owners, officers and insiders misused and mismanaged $320 million in investments (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-06658, S.D. N.Y.).

  • September 20, 2018

    Insurer Asserts Civil Conspiracy Claim Against Bank In Federal Court

    COLUMBIA, S.C. — An insurer filed a first amended complaint on Sept. 6, asserting breach of contract, breach of fiduciary duty, negligence and gross negligence, negligent misrepresentation and civil conspiracy claims in a South Carolina federal court dispute involving a bank sued for its role as trustee of a reinsurance trust for an insolvent insurer (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).

  • September 19, 2018

    Pedestrian Files Personal Injury Case Against New Jersey Insurance Association

    NEWARK, N.J. — A New Jersey pedestrian filed a lawsuit on Sept. 17 against the New Jersey Property Liability Insurance Guaranty Association (NJPLIGA) and the driver and owner of a vehicle that was involved in a collision causing him injuries (Thomas H. Snyder v. Karim Teran, et al., No. ESX-L-006567-18, N.J. Super., Essex Co.).

  • September 14, 2018

    Judge Compels Arbitration For Insolvent Insurer’s Breach Of Contract Dispute

    FRANKFORT, Ky. — On remand after the vacating of an order denying arbitration, a Kentucky federal judge on Sept. 11 compelled an insolvent insurer’s liquidator and an administrative services provider to argue their breach of contract dispute in arbitration (Nancy G. Atkins v. CGI Technologies and Solutions Inc., No. 16-00037, E.D. Ky., 2018 U.S. Dist. LEXIS 154564).

  • September 13, 2018

    Judge Orders Insolvent Insurer To Arbitrate Breach Of Contract Claim

    FRANKFORT, Ky. — Kentucky’s prohibition of arbitration between insolvent insurers and third-party contractors “does not trump the mandate of the Federal Arbitration Act [FAA] that valid arbitration agreements must be upheld,” a Kentucky federal judge ruled Sept. 11, granting a motion to compel arbitration of an insurer’s liquidator’s breach of contract case (Beam Partners LLC, et al. v. Nancy G. Atkins, No. 17-004, E.D. Ky., 2018 U.S. Dist. LEXIS 154566).

  • September 10, 2018

    Justice Approves Allocation Plan Against Medical Insurer In Rehabilitation

    CONCORD, N.H. — In a dispute against excess funds in the winding down of New Hampshire Medical Malpractice Joint Underwriting Association (JUA), a New Hampshire trial justice on Sept. 6 approved a proposed plan of allocation awarding $25,000 to each of three class representatives (Georgia A. Tuttle, M.D., et al. v. New Hampshire Medical Malpractice Joint Underwriting Association and In the Matter of the Winding Down of the New Hampshire Medical Malpractice Joint Underwriting Association, Nos. 2010-294 & 2015-347, N.H. Super., Merrimack Co., 2018 N.H. Super. LEXIS 18).

  • September 10, 2018

    Judge Denies Reconsideration In Criminal Case Over Insurer’s Liquidation

    NEW ORLEANS — A Louisiana federal judge on Sept. 6 refused to reconsider a ruling in a criminal action over an auditor’s role in the liquidation of an insolvent insurer in which the judge denied a defendant’s motion for a certificate of innocence for his conviction for money laundering (United States v. Michael H. O’Keefe Sr., No. 95-106, E.D. La.).

  • September 6, 2018

    No Need For En Banc Review, Government Says In ACA Risk-Corridor Cases

    WASHINGTON, D.C. — Congress’ subsequent actions clearly and unequivocally limited payments in the Patient Protection and Affordable Care Act (ACA) risk corridor to income received through the program, regardless of the language it used in enacting the program, the government said Aug. 31 in urging the Federal Circuit U.S. Court of Appeals to deny a series of insurer’s request for en banc rehearing (Land of Lincoln Mutual Health Insurance Co. v. United States, No. 17-1224, Moda Health Plan Inc. v. United States, No. 17-1994, Blue Cross and Blue Shield of North Carolina v. United States, No. 17-2154, Maine Community Health Options v. United States, No. 17-2395, Fed. Cir.).

  • September 5, 2018

    South Carolina High Court Upholds Offset Ruling In Insolvent Insurer Lawsuit

    COLUMBIA, S.C. — Finding that the South Carolina Property and Casualty Insurance Guaranty Association Act is ambiguous, the state’s high court ruled Sept. 5 that the act requires that settlement amounts be offset from the total amount of an injured party’s damages rather than from a $300,000 statutory cap (Janette Buchanan, et al. v. The South Carolina Property and Casualty Insurance Guaranty Association, No. 2016-002156, S.C. Sup., 2018 S.C. LEXIS 113).

  • August 30, 2018

    Insolvent Insurer’s Liquidator Files Amended Answer In Reimbursement Lawsuit

    LOS ANGELES — The liquidator of an insolvent medical professional liability insurer filed an amended answer on Aug. 29 in a California federal court lawsuit seeking reimbursement under a letter of credit issued to the insurer to stay enforcement of a $2.5 million medical malpractice judgment (MUFG Union Bank, N.A. v. Steven C. Taylor, No. 18-02772, C.D. Calif.).

  • August 29, 2018

    Insurer’s Liquidator Seeks Approval Of Final Notices Of Determination

    HARRISBURG, Pa. — The liquidator for Reliance Insurance Co. filed an application on July 23 with a Pennsylvania court for an order approving a recommendation on final guaranty association omnibus notices of determination (In re:  Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

  • August 29, 2018

    Settlement Releases Claims Against Insolvent Self-Insured Employer’s Excess Insurer

    RICHMOND, Va. — A settlement agreement released all claims of California Self-Insureds’ Security Fund against the trust of an insolvent self-insured employer, including those claims against the employer’s excess insurer, a Virginia federal bankruptcy judge ruled Aug. 27, finding that the fund breached the agreement by issuing a demand upon the excess insurer (In re:  Circuit City Stores Inc., et al., No. 08-35653, Chapter 11, Alfred H. Siegel v. California Self-Insureds’ Security Fund, et al., No. 18-03040, E.D. Va. Bkcy., 2018 Bankr. LEXIS 2572).

  • August 28, 2018

    Insolvent Self-Insured’s President Failed To Properly Request Funds, Panel Finds

    LEXINGTON, Ky. — In a lawsuit alleging statutory and regulatory violations against state agencies, an insolvent self-insured employer’s president was required to request a refund of security with the commissioner for the Kentucky Department of Workers’ Claims, the Kentucky Court of Appeals held Aug. 24 (James R. Martin v. Kentucky Individual Self-Insurance Guaranty Fund, et al., No. 2017-CA-000499-MR, Ky. App., 2018 Ky. App. Unpub. LEXIS 613).

  • August 28, 2018

    Government Did Not Breach Agreement By Not Covering Insolvent Insurer, Panel Says

    WASHINGTON, D.C. — Because a settlement agreement did not obligate the U.S. government to act as a guarantor of future periodic annuity payments for medical malpractice claims when an insurer became insolvent, the Federal Circuit U.S. Court of Appeals on Aug. 20 affirmed the entry of summary judgment in favor of the government (Karen L. Shaw, et al. The United States, No. 17-2136, Fed. Cir., 2018 U.S. App. LEXIS 23189).

  • August 27, 2018

    Georgia Insurers Insolvency Pool Asks Court To Address Coverage Exhaustion Issue

    ATLANTA —  In what it calls a case of first impression, the Georgia Insurers Insolvency Pool (GIIP) argues to the Georgia Court of Appeals in a July 30 brief that a Georgia statute requires that a person who presents a claim to it first exhaust all coverages provided by solvent insurance companies for the claim (Rigoberto Riano v. Georgia Insurers Insolvency Pool, No. A18A1981, Ga. App.).

  • August 20, 2018

    Insurance Commissioner Reports No New Claims In Insurer’s Liquidation

    ST. THOMAS, Virgin Islands — A Virgin Islands insurance commissioner filed an accounting and status report on July 26 informing a Virgin Islands federal court that there have been no new claims and that the amount being held for the insolvent insurer remains above $1.4 million (In the matter of Phoenix Fire and Marine Insurance Company Ltd., No. 1991-271, D. Virgin Islands).

  • August 17, 2018

    Insolvent Insurer To Georgia High Court: Sovereign Immunity Bars Claims

    ATLANTA — Indemnity claims are barred by the doctrine of sovereign immunity, an insolvent insurer tells the Georgia Supreme Court in a July 30 brief, also saying that any claim to reimburse a regulatory tech firm for any administrative expenses that were excessive was not barred and should be remanded for further proceedings (Georgia, et al. v. International Indemnity Co., et al., No. S18G0493; Regulatory Technologies Inc. v. Georgia, et al., No. S18G0499, Ga. Sup.).

Can't find the article you're looking for? Click here to search the Mealey's Insurance Insolvency archive.