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Mealey's Insurance Insolvency

  • February 11, 2019

    Virgin Islands Insurance Commissioner Seeks Ancillary Receivership

    ST. THOMAS, Virgin Islands — A Virgin Islands insurance commissioner in a Feb. 6 petition asks a Virgin Islands federal court to appoint him and successors as Real Legacy Assurance Company Inc.’s ancillary receiver (Tregenza A. Roach v. Real Legacy Assurance Company Inc., No. 19-00007, D. Virgin Islands).

  • February 7, 2019

    Investors Seek Dismissal Of Fraud, Conspiracy Case From Hedge Fund Liquidators

    NEW YORK — In 11 motions filed Feb. 4, parties argue under a theory of impermissible group pleading that a New York federal court should dismiss a fraud and conspiracy lawsuit filed by liquidators for two hedge funds over allegations that the funds with a net asset value of nearly $1 billion turned out not only to be insolvent but also to have liabilities between $400 million and $800 million (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • February 7, 2019

    ACA Insurers Seek High Court Review Of Risk-Corridor Cases

    WASHINGTON, D.C. — Congress’ promise to cover Patient Protection and Affordable Care Act (ACA) risk-corridor liabilities only to revoke that duty in vaguely worded appropriations riders is a “bait-and-switch” tactic that leaves the government completely unaccountable, a quartet of insurers tell the U.S. Supreme Court in a trio of Feb. 4 petitions (Land of Lincoln Mutual Health Insurance Co. v. United States, No. N/A, Moda Health Plan Inc. v. United States, No. 18-1028, Blue Cross and Blue Shield of North Carolina v. United States, No. 17-2154, Maine Community Health Options v. United States, No. 18-1023, U.S. Sup.).

  • February 6, 2019

    Man Sues New Jersey Insurance Guaranty Association For Damages

    PATERSON, N.J. — A New Jersey man seeks damages in a Feb. 1 complaint filed in a New Jersey court from New Jersey Property Liability Insurance Guaranty Association (NJPLIGA) for injuries suffered in a motor vehicle accident (Charles McQueen v. New Jersey Property Liability Insurance Guaranty Association, No. PAS-L-000353-19, N.J. Super., Passaic Co.).

  • February 5, 2019

    Judge Denies Default Judgment To Insurer’s Special Deputy Receiver

    ANDERSON, S.C. — A request for default judgment by a special deputy receiver for a multiple-employer self-insured health plan was denied by a South Carolina federal judge on Jan. 28 (Michael J. FitzGibbons, et al. v. Alton Atkinson, et al., No. 17-2092, D. S.C., 2019 U.S. Dist. LEXIS 13119).

  • February 5, 2019

    Banks: Affirmative Defenses Are Sufficient In Insurers’ Funds Mishandling Case

    ST. LOUIS — In a dispute over the mishandling of funds belonging to insolvent funeral insurers, banks argue in a Feb. 1 motion filed in a Missouri federal court that their investment adviser, authorization and an in pari delicto defenses are supported by the law and the evidence in the case (Jo Ann Howard & Associates P.C., et al. v. J. Douglas Cassity, et al., No. 09-01252, E.D. Mo.).

  • February 5, 2019

    Georgia High Court: Official Immunity Provision Does Not Apply To Insurer’s Liquidator

    ATLANTA — An official immunity provision does not apply to claims for a “surcharge” and attorney fees against an insurance commissioner and two employees, all in official capacities as liquidator and deputies for an insurer, and against a private company involved in the liquidation, the Georgia Supreme Court held Feb. 4 (Georgia, et al. v. International Indemnity Co., et al., No. S18G0493; Regulatory Technologies Inc. v. Georgia, et al., No. S18G0499, Ga. Sup., 2019 Ga. LEXIS 69).

  • February 4, 2019

    Government: No Error In Criminal Action Over Auditor’s Role In Insurer’s Liquidation

    NEW ORLEANS — The government argues in a Feb. 1 brief that there was no abuse of discretion by a lower court in a criminal action over an auditor’s role in the liquidation of an insolvent insurer and that, instead, the Fifth Circuit U.S. Court of Appeals should affirm the lower court’s ruling denying the auditor’s motion for a certificate of innocence for a conviction for money laundering (United States v. Michael H. O’Keefe Sr., No. 18-31033, 5th Cir.).

  • February 1, 2019

    Reinsurer Seeks Partial Dismissal Of Run-Off Insurer’s $320M Mismanagement Case

    NEW YORK — A reinsurer and its entities argue in a Jan. 29 reply brief that a run-off insurer fails to assert claims for breach of fiduciary duty and fraud in a New York federal court dispute over the alleged mismanagement and misuse of $320 million (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-6658, S.D. N.Y.).

  • January 31, 2019

    Assessment From Workers’ Comp Self-Insurer Guaranty Was Invalid, Panel Finds

    JACKSON, Miss. — An assessment by the Workers’ Compensation Group Self-Insurer Guaranty Association (GGA) was invalid because the guaranty fund’s balance never declined to a level that allows for additional assessments, a Mississippi appeals panel ruled Jan. 29 (Mississippi Manufacturers Association Workers’ Compensation Group v. Mississippi Workers’ Compensation Group Self-Insurer Guaranty Association, No. 2015-WC-01695-COA c/w No. 2017-WC-01680-COA c/w No. 2017-WC-01678-COA, Miss. App., 2019 Miss. App. LEXIS 45).

  • January 31, 2019

    Funeral Insurers’ Receiver Says Bank Committed Breaches As Funds’ Trustee

    ST. LOUIS — In a Missouri federal court case over the mishandling of insolvent funeral insurers’ funds, a special deputy receiver and state insurance guaranty associations say in a Jan. 28 response that a bank “committed multiple and systemic breaches of trust throughout its six-year tenure as trustee” (Jo Ann Howard & Associates P.C., et al. v. J. Douglas Cassity, et al., No. 09-01252, E.D. Mo.).

  • January 30, 2019

    Bankruptcy Judge Uncertain Over Reinsurance Firm’s Delay Of Reimbursement

    WILMINGTON, Del. — In a Chapter 11 proceeding, a Delaware bankruptcy judge on Jan. 25 indicated uncertainty about whether a reinsurance firm is able to delay a $1.25 million payment as reimbursement owed to a stalking horse bidder that did not win an auction for the bankruptcy sale of the company (In re Scottish Holdings Inc., et al., No. 18-10160, D. Del. Bkcy.).

  • January 30, 2019

    Judge Dismisses Insurer’s Liquidator’s Case Over Owed Reinsurance Proceeds

    NEW YORK — A New York federal judge on Jan. 28 dismissed with prejudice a dispute by the liquidator for Home Insurance Co. against a reinsurer over proceeds allegedly owed to the insurer under three facultative reinsurance certificates (Roger A. Sevigny v. Trygvesta Forsikring A/S, Trygvesta Forsikring A/S v. Cerberus Holding Company LLC, No. 16-4874, S.D. N.Y.).

  • January 29, 2019

    New York Superintendent Seeks Dismissal Of Insurer’s Equal Protection Rights Case

    NEW YORK — The New York superintendent of Financial Services asked a New York federal judge on Jan. 25 to dismiss an insurer’s case seeking redress for violation of its equal protection rights (Park Insurance Co. v. Maria T. Vullo, et al., No. 18-09628, S.D. N.Y.).

  • January 25, 2019

    Testimony Sought To Be Barred In Case Over Trustee’s Role For Insolvent Insurer

    COLUMBIA, S.C. — A bank sued for its role as trustee of a reinsurance trust for an insolvent insurer argues in Jan. 22 reply briefs that a South Carolina federal court should exclude undisclosed expert and damages testimony, a liability expert and evidence related to government investigations (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).

  • January 25, 2019

    Colorado Appeals Panel Rules On Effect Of Liquidation Order Against Insurer

    DENVER — A Colorado court must recognize and give effect to a South Carolina court’s liquidation order concerning a South Carolina risk retention insurance group and its policyholders when one of those policyholders is sued in Colorado, the state’s appeals court ruled Jan. 24, noting that the matter is one of first impression (John L. Garrou, et al. v. Lawrence A. Shovelton, No. 2019COA15, Colo. App., 2019 Colo. App. LEXIS 87).

  • January 24, 2019

    Liquidation Claims Procedure Granted For American Medical Life Insurance Company

    NEW YORK — The liquidator for American Medical and Life Insurance Co. (AMLI) on Dec. 10 was granted approval of her procedure for adjudication of claims and appointment of a referee to hear objections by a New York justice (In the matter of liquidation of American Medical and Life Insurance Co., No. 452041/16, N.Y. Sup., New York Co.).

  • January 24, 2019

    Special Deputy Receiver Seeks Judgment On Banks’ Affirmative Defenses

    ST. LOUIS — A special deputy receiver and state insurance guaranty associations moved for judgment on Jan. 18 with regard to banks’ investment adviser defense, authorization defense and an in pari delicto defense in their Missouri federal court case 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.).

  • January 23, 2019

    Justice Approves Adjudication Procedure In Insolvent Insurer’s Liquidation

    LONG ISLAND CITY, N.Y. — The adjudication procedure for claims under policies issued by Fiduciary Insurance Company of America that are covered by the New York Public Motor Vehicle Liability Security Fund and claims against the insurer’s estate that are not covered by the Security Fund was approved by a New York trial justice on Jan. 7 (In the matter of the liquidation of Fiduciary Insurance Company of America, No. 703264/2017, N.Y. Sup., Queens Co.).

  • January 23, 2019

    Justice: No Prima Facie Case Against Maine Insurance Guaranty Association

    ALFRED, Maine — Insureds failed to establish a prima facie case that would entitle them to recover for their fire damages against Maine Insurance Guaranty Association (MIGA), a Maine justice ruled Dec. 4, granting summary judgment to MIGA (Daniel Arbo, et al. v. Tower Group Inc., et al., No. CV-17-150, Maine Super., York Co., 2018 Me. Super. LEXIS 198).