Mealey's Insurance Insolvency

  • December 10, 2018

    British Reinsurers, Insolvent Insurer Settle Arbitration Dispute

    NEW YORK — In a dispute over reinsurance payments for construction site injuries, a New York federal judge on Dec. 6 said that an insolvent workers’ compensation insurer and British underwriters agreed to settle following a ruling by the Second Circuit U.S. Court of Appeals on an order vacating $1.5 million award (Certain Underwriting Members of Lloyds of London, et al. v. Insurance Company of the Americas, Nos. 16-323 & 16-374, S.D. N.Y.).

  • December 07, 2018

    Insolvent Insurer’s Founder Denied Intervention In Delaware Liquidation

    WILMINGTON, Del. — A Delaware vice chancellor on Dec. 6 denied a fourth attempt by the founder, now in prison for fraud, of an insurer, now in liquidation, from intervening to challenge findings that the insurer is insolvent (In the matter of the liquidation of Indemnity Insurance Corp., RRG, No. 8601-VCZ, Del. Chanc., 2018 Del. Ch. LEXIS 556).

  • December 06, 2018

    Reinsurance Intermediaries, Insolvent Insurer’s Receiver Reach Settlement, Judge Says

    OKLAHOMA CITY — In an administrative closing order, an Oklahoma federal judge on Dec. 3 noted that reinsurance intermediaries and the receiver for an insolvent insurer have reached a settlement as to the receiver’s lawsuit alleging negligence in reinsurance services provided to the insurer (Oklahoma, et al. v. Axiom Re LP, et al., No. 17-0484, W.D. Okla.).

  • December 04, 2018

    Insurance Commissioner Seeks To Liquidate Insurer Following California Fires

    MERCED, Calif. — As a result of the fires in Paradise, Calif., the California insurance commissioner on Nov. 30 requested to be appointed liquidator for Merced Property & Casualty Co. because the insurer projects to be insolvent from those fires losses (Insurance Commissioner of the state of California v. Merced Property & Casualty Co., No. N/a, Calif. Super., Merced Co.).

  • December 03, 2018

    Judge Allows Insolvent Insurer Time To Respond To Pre-Motion Letter

    NEW YORK — A New York federal judge on Nov. 28 gave an insolvent insurer time to respond to the New York superintendent of financial services and the New York State Department of Financial Services’ (DFS) pre-motion letter in a case seeking redress for violation of the insurer’s equal protection rights (Park Insurance Co. v. Maria T. Vullo, et al., No. 18-09628, S.D. N.Y.).

  • November 29, 2018

    Reinsurer Seeks Dismissal Of Run-Off Insurer’s Tort, Quasi-Contract Claims

    NEW YORK — A reinsurer and its entities argue in a Nov. 5 brief that a New York federal court should dismiss a run-off insurer’s tort and quasi-contract claims because the case over the alleged mismanagement and misuse of $320 million is one for breach of contract (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-06658, S.D. N.Y.).

  • November 28, 2018

    Judge Rules On 13 Motions To Exclude In Insurers’ Receiver’s Case Against Banks

    ST. LOUIS — A Missouri federal judge on Nov. 21 decided 13 motions to exclude evidence and expert testimony in a case among banks, a special deputy receiver and state insurance guaranty associations over the mishandling of funds belonging to insolvent funeral insurers (Jo Ann Howard & Associates P.C., et al. v. J. Douglas Cassity, et al., No. 09-01252, E.D. Mo., 2018 U.S. Dist. LEXIS 198240).

  • November 27, 2018

    Panel Denies Rehearing In Dispute Between Insolvent Insurer, U.S. Government

    CHICAGO — The Seventh Circuit U.S. Court of Appeals on Nov. 21 denied a petition by the U.S. Department of Health and Human Services (HHS) asking for rehearing for limited purposes of removing two sentences from a decision finding that a federal court erred in remanding the HHS’s dispute with an insolvent insurer’s liquidator over the government’s setoff of its own debt payments by first paying down the insolvent insurer’s debt (Jennifer Hammer v. U.S. Department of Health and Human Services, No. 18-2523, 7th Cir., 2018 U.S. App. LEXIS 33002).

  • November 21, 2018

    Judge Rules On Key Issues In Case Over Mishandling Of Insolvent Insurers’ Funds

    ST. LOUIS — On Nov. 20, a Missouri federal judge ruled on five summary judgment motions filed by a special deputy receiver, state insurance guaranty associations and banks on issues in a dispute over the mishandling of funds belonging to insolvent funeral insurers (Jo Ann Howard & Associates P.C., et al. v. J. Douglas Cassity, et al., No. 09-01252, E.D. Mo., 2018 U.S. Dist. LEXIS 197542).

  • November 21, 2018

    Insurer’s Rehabilitator Answers Objection To Stock Purchase Agreement

    CHICAGO — A rehabilitator for two insolvent insurers on Nov. 5 responded to an objection made in an Illinois court to her amended plan, which involves the consummation of a stock purchase agreement (SPA) (In the matter of the rehabilitation of Public Service Insurance Co. and Public Service Mutual Holding Co., No. 17 CH 3790, Ill. Cir., Cook Co.).

  • November 20, 2018

    HHS Secretary: State Agency Responsible For Workers’ Comp Claims

    SAN FRANCISCO —Secretary of Health and Human Services Alex Azar II argues in a Nov. 16 brief to the Ninth Circuit U.S. Court of Appeals that the California Insurance Guarantee Association (CIGA), as a primary plan, is responsible for making payment to insureds of workers’ compensation plans that become insolvent (California Insurance Guarantee Association v. Alex Azar II, et al., Nos. 17-56526 & 17-56528, 9th Cir.).

  • November 20, 2018

    Insurers’ Receiver Requests Dismissal Of Claim In Breach Of Fiduciary Duty Case

    ST. LOUIS — The special deputy receiver for three insolvent insurers argues in a Nov. 19 reply to a Missouri federal court that responses to its motion to abstain or dismiss a cross-claim in a breach of fiduciary duty lawsuit ignore the effect of a liquidation order (Winner Road Properties LLC v. BMO Harris Bank, N.A. v. Jo Ann Howard & Associates, P.C., No. 16-1395, E.D. Mo.).

  • November 20, 2018

    Breach Of Contract Case Against Insurer Over Collateral Funds Continues

    GREENSBORO, N.C. — A North Carolina federal judge on Nov. 16 refused to dismiss a breach of contract lawsuit against an insurer regarding the return of collateral funds, rejecting the insurer’s argument that two defendants previously dismissed from the lawsuit were necessary and indispensable parties (Debbie’s Staffing Services Inc. v. Highpoint Risk Services LLC, et al., No. 17-657, M.D. N.C., 2018 U.S. Dist. LEXIS 196160).

  • November 19, 2018

    Insurer’s Special Deputy Receiver Issues Report On Status Conference

    AUSTIN, Texas — A special deputy receiver (SDR) for Access Insurance Co. provided a report to a Texas trial court on a status conference held Nov. 5 detailing, among other matters, the termination of a transition services agreement, continued reinsurance reporting and the preparation of an application to make first early access distribution (The Texas Department of Insurance v. Access Insurance Co., No. D-1-GN-18-001285, Texas Dist., Travis Co., 261st Jud.).

  • November 14, 2018

    Insolvent Insurer Told To File Status Report In Breach Of Contract Case

    LOS ANGELES — Having previously stayed a breach of contract case against an insolvent insurer pending resolution of the insurer’s liquidation, a California federal judge on Nov. 2 discharged an order to show cause and ordered the insolvent insurer to file another status report in six months (Yancy Alvarez, et al. v. Access General Insurance Co., No. 18-336, C.D. Calif.).

  • November 13, 2018

    Man Seeks Damages From New Jersey Insurance Guaranty Association

    NEWARK, N.J. — A New Jersey man seeks personal injury damages from the New Jersey Property Liability Insurance Guaranty Association (NJPLIGA) in a Nov. 1 complaint filed in a New Jersey trial court for injuries sustained from a motor vehicle accident (Maurico Tapia v. Eduin Diaz, et al., No. ESX-L-007790-18, N.J. Super., Essex Co.).

  • November 13, 2018

    New Zealand High Court Places Reinsurer Into Liquidation

    AUCKLAND, New Zealand — The Auckland High Court ordered CBL Insurance Ltd., a New Zealand insurer and reinsurer, into liquidation on Nov. 12 (In the matter of CBL Insurance Ltd. in liquidation, No. CIV-2018-404-001667, New Zealand High, Auckland Registry).

  • November 13, 2018

    Insurer’s Liquidator Recommends Distributing $14.2M On Resolved Claims

    HARRISBURG, Pa. — The liquidator for Reliance Insurance Co. filed an application on Oct. 30 asking a Pennsylvania court to approve her report recommending an allowance of $14.2 million on resolved claims (In re:  Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

  • November 13, 2018

    Court Told Insolvent Insurer Has $1.44M In Funds, No New Claims

    ST. THOMAS, Virgin Islands — Noting a new deposit, a Virgin Islands insurance commissioner filed an accounting and status report on Nov. 2, telling a Virgin Islands federal court that there are no new claims and that the amount being held for an insolvent insurer is $1.44 million (In the matter of Phoenix Fire and Marine Insurance Company Ltd., No. 1991-271, D. Virgin Islands).

  • November 13, 2018

    Liquidator For Home Insurance Company Files Report On Claims

    CONCORD, N.H. — The New Hampshire insurance commissioner on Oct. 19 filed a report and recommendations for claims in a state trial court’s liquidation of The Home Insurance Co. (In the matter of the liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).

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