Mealey's Insurance Insolvency
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January 15, 2021
Bankruptcy Judge Orders Turnover Of Books, Records To Insurer’s Liquidators
NEW YORK — A former principal for PB Life and Annuity Co. Ltd. (PBLA) and his entities were ordered by a New York federal bankruptcy on Jan. 14 to turn over books and records to PBLA’s liquidators as well as attorney files relating to the administration of assets worth more than $1 billion.
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January 15, 2021
Bankruptcy Judge Approves Patriot National Inc. Trustee’s $30M Settlements
WILMINGTON, Del. — A Delaware bankruptcy judge on Jan. 14 approved two settlements reached by the litigation trustee for Patriot National Inc. that are worth $30 million against five former directors and officers of the bankrupt insurance firm over the directors and officers’ alleged corporate waste.
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January 13, 2021
BancInsure Inc.’s Receiver: There Is No Direct Action For Damages Against D&O Insurer
OKLAHOMA CITY — BancInsure Inc.’s receiver argues in a Dec. 15 sur-reply to an Oklahoma federal court that its declaratory judgment action against a directors and officers insurer should not be dismissed because his suit is not a “direct action” to recover money damages against an insurer.
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January 12, 2021
Louisiana Federal Court Told It Should Hear Case Over Effect Of Insurer’s Rehabilitation Plan
BATON ROUGE, La. — Despite “unsupported insinuations” in a motion to dismiss from Senior Health Insurance Company of Pennsylvania’s (SHIP) rehabilitator, a Louisiana federal court can decide legal issues over SHIP’s rehabilitation plan, the Louisiana insurance commissioner argues in a Jan. 8 opposition brief, also saying that his lack of participation in the rehabilitation does not bar his ability to seek relief.
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January 08, 2021
Insured Failed To Show Insurer Was Biased In Processing Hurricane Harvey Claim
HOUSTON — A Texas federal judge on Dec. 29 determined that extracontractual claims asserted against a businessowners insurer cannot proceed because the insured failed to prove that the insurer or its representatives were biased against the insured when processing its claim for damages sustained during Hurricane Harvey.
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January 08, 2021
Global Hawk Property And Casualty Insurance Company Placed Into Liquidation
WILMINGTON, Del. — Global Hawk Property and Casualty Insurance Co. was placed into liquidation by a Delaware vice chancellor on Jan. 7, and the state’s insurance commissioner was appointed as the insurer’s receive.
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January 05, 2021
Federal Judge Stays Case Against Insolvent Insurer Over $750,000 Judgment
LOUISVILLE, Ky. — A claimant’s suit against an insolvent insurer over a $750,000 truck crash judgment was stayed pending the insurer’s liquidation proceedings, a Kentucky federal judge held Jan. 4, granting in part a motion for reconsideration.
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January 04, 2021
Patriot National Inc.’s Trustee Seeks Approval Of $30M Settlements
WILMINGTON, Del. — The litigation trustee for Patriot National Inc. on Dec. 18 asked a Delaware bankruptcy judge to approve two “fair” and “equitable” settlements worth $30 million against five former directors and officers of the bankrupt insurance firm over their alleged corporate waste.
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December 31, 2020
Insurer’s Liquidators Seek Books, Records In Bankruptcy Court Regarding $1B In Assets
NEW YORK — Liquidators for PB Life and Annuity Co. Ltd. (PBLA) ask a New York federal bankruptcy court in a Dec. 21 motion to compel the turnover of books and records in the possession of affiliates to PBLA’s former principal as well as attorney files as they relate to the administration of more than $1 billion in assets.
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December 23, 2020
N.J. Insurance Guaranty Association Seeks Contribution In Personal Injury Suit
NEWARK, N.J. — The New Jersey Property-Liability Insurance Guaranty Association (NPLIGA) filed a cross-claim on Dec. 18 in a New Jersey federal court against other defendants in a woman’s personal injury lawsuit seeking damages caused by a police car chase that led to a collision (Patricia Brinson v. Shakeera S. Williams, et al., No. 20-9606, D. N.J.).
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December 22, 2020
New York Justice Orders Ancillary Receivership For Insolvent Insurer’s Subsidiary
NEW YORK — A New York justice on Dec. 16 ordered an ancillary receivership for American Country Insurance Co. (ACIC), an insolvent insurer’s subsidiary, and appointed New York Superintendent of Financial Services Linda A. Lacewell as receiver (In the matter of the ancillary receivership of American Country Insurance Company, 452250/2020, N.Y. Sup., New York Co.).
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December 16, 2020
Receiver: No Authority To Settle $750,000 Judgment Outside Insurer’s Liquidation
LOUISVILLE, Ky. — The receiver for Spirit Commercial Auto Risk Retention Group Inc. argues in a Dec. 14 reply brief to a Kentucky federal court that Nevada and Kentucky state law preclude her from attending any settlement conference with authority to approve a settlement of a claimant’s case over a $750,000 truck crash judgment against Spirit’s insured (George Gillett v. Spirit Commercial Auto Risk Retention Group, Inc., et al., No. 19-260, W.D. Ky.).
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December 16, 2020
Justice Reduces $500,000 Jury Award Against Insurer In Rehabilitation
NEW YORK — A $500,000 jury award for a Staten Island owner of a 96-unit apartment complex regarding damages from Hurricane Irene was reduced to $404,671 against an insurer in rehabilitation after a New York justice on Nov. 25 applied the policy’s coinsurance provision and a deductible to the jury’s award (25 Bay Terrace Associates, L.P. v. Public Service Mutual Insurance Company, No. 451952/2020, N.Y. Sup., New York Co., 2020 N.Y. Misc. LEXIS 10190).
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December 15, 2020
Magistrate Judge: Personal Injury Coverage Suit Stayed Due To Insurer’s Liquidation
SAVANNAH, Ga. — Citing a liquidation order against an insurer, a Georgia federal magistrate judge on Dec. 14 stayed for 60 days the insurer’s declaratory judgment case over an underlying $112,466.57 personal injury default judgment (American Service Insurance Company, Inc. v. Webber’s Transportation, LLC, et al., No. 20-13, S.D. Ga., 2020 U.S. Dist. LEXIS 234560).
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December 14, 2020
Judge Declines To Remand Insurers’ Rehabilitator’s Aiding, Abetting Fraud Suit
BATON ROUGE, La. — A Louisiana federal judge on Dec. 11 denied remand of a rehabilitator’s aiding and abetting fraud and breach of fiduciary duty suit over loans that allegedly misled state insurance regulators on insurers’ finances because a former director of one the insurers was improperly joined (James J. Donelon v. Jeffrey C. Pollick, et al., No. 20-177, M.D. La.).
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December 11, 2020
Liquidator: Right Exists To Pursue Coverage From Excess Insurer On Wrongful Acts Claim
SIOUX FALLS, S.D. — The liquidator of ReliaMax Surety Co. (RSC) argues in a Dec. 8 reply and opposition brief to a South Dakota federal court that he “has a perfect right” as the surety’s statutory successor to seek a declaratory judgment regarding coverage under an excess insurance policy above a directors and officers (D&O) policy concerning coverage for a $21 million wrongful acts claim (Larry Deiter v. XL Specialty Insurance Co., No. 20-3009, D. S.D.).
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December 10, 2020
Insurance Commissioner Seeks Order Of Liquidation For Delaware Insurer
WILMINGTON, Del. — Delaware’s insurance commissioner petitioned the Delaware Court of Chancery on Dec. 9 for an order placing Global Hawk Property and Casualty Insurance Co. into liquidation and naming him the insurer’s receiver (Trinidad Navarro v. Global Hawk Property and Casualty Insurance Company, No. 2020-1044, Del. Chanc.).
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December 10, 2020
2nd Circuit Stays Appeal In Insurer, Reinsurer’s $524M Arbitration Award Dispute
NEW YORK — Citing a recent temporary restraining order in a Bermuda reinsurer’s bankruptcy proceeding, the Second Circuit U.S. Court of Appeals on Dec. 7 stayed the reinsurer’s appeal with regard to confirmation of a $524,009,051.26 arbitration award issued in favor of a Puerto Rico life insurer in a dispute over the alleged improper asset divestments for a reinsurance trust (PB Life and Annuity Co. Ltd. v. Universal Life Insurance Company, No. 20-3122, 2nd Cir.).
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December 09, 2020
Insurer’s Liquidators Seek Bankruptcy Court Help In Administration Of Assets
NEW YORK — Joint liquidators for PB Life and Annuity Co. Ltd. (PBLA) on Dec. 3 petitioned for a New York federal bankruptcy court to recognize a Bermuda liquidation proceeding against PBLA as a foreign main proceeding to assist in the administration of hundreds of millions of dollars of assets (In re PB Life and Annuity Co., Ltd., No. 20-12791, S.D. N.Y. Bkcy.).
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December 08, 2020
New York Justice Orders Ancillary Receivership For Insolvent Illinois Insurer
NEW YORK — A New York justice on Dec. 2 ordered an ancillary receivership for American Service Insurance Co. (ASIC), an insolvent Illinois insurer, and named New York Superintendent of Financial Services Linda A. Lacewell as ancillary receiver (In the matter of the ancillary receivership of American Service Insurance Company, 452249/2020, N.Y. Sup., New York Co.).