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Mealey's Insurance Insolvency

  • 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.).

  • November 8, 2018

    Responses Given On Issues In Case Over Mishandling Of Insolvent Insurers’ Funds

    ST. LOUIS — State insurance guaranty associations and banks filed opposition briefs on Nov. 5 in response to five summary judgment motions on key issues in a Missouri federal court 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.).

  • November 7, 2018

    Divided Court Denies Insurers Rehearing In ACA Risk-Corridor Case

    WASHINGTON, D.C. — With two judges dissenting, a federal appeals court on Nov. 6 declined to rehear health care insurers’ case claiming that the government owes them billions of dollars in Patient Protection and Affordable Care Act (ACA) risk-corridor funds (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., 2018 U.S. App. LEXIS 31395).

  • November 7, 2018

    Delaware High Court Denies Review In Misconduct Case Over Insolvent Insurer

    WILMINGTON, Del. — In a dispute regarding alleged misconduct that caused injury to an insurer in liquidation, the Delaware Supreme Court on Nov. 5 denied interlocutory review of a lower court’s orders allowing equity investors to pursue derivative claims on behalf of themselves and the insolvent insurer (U.S. Bank National Association, et al. v. Charles David Wood Jr., et al., No. 549, 2018, Del. Sup., 2018 Del. LEXIS 491).

  • November 6, 2018

    Reinsurance Trustee For Insolvent Insurer Says Claims Are Time-Barred

    COLUMBIA, S.C. — In South Carolina federal court, a bank sued for its role as trustee of a reinsurance trust for an insolvent insurer on Nov. 2 sought summary judgment against an insurer regarding claims for breach of contract, breach of fiduciary duty, negligence, negligent misrepresentation and civil conspiracy because those claims are time-barred (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).

  • November 5, 2018

    Discovery Protective Order Issued In Dispute Between Run-Off Insurer, Reinsurers

    NEW YORK — A New York federal judge on Nov. 1 issued a protective order regarding discovery in a case between a run-off insurer, reinsurers and the reinsurers’ related entities over allegations of mismanagement and misuse of $320 million in investments (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-06658, S.D. N.Y.).

  • November 5, 2018

    Florida Judge Discharges Insurer From Receivership

    TALLAHASSEE, Fla. — A Florida judge on Oct. 26 discharged First Commercial Transportation and Property Insurance Co. from receivership (In re: The receivership of First Commercial Transportation and Property Insurance Co., No. 2009-CA-002669, Fla. Cir., 2nd Jud., Leon Co.).

  • November 5, 2018

    SEC Alleges Schemes To Defraud Insurers, Reinsurance Trusts

    NEW YORK — In an Oct. 16 complaint filed in a New York federal court, the Securities and Exchange Commission alleges that two individuals “perpetrated multiple schemes to defraud their advisory clients, which were insurance companies and reinsurance trusts” (Securities and Exchange Commission v. Alexander C. Burns, et al., No. 18-09477, S.D. N.Y.).

  • November 1, 2018

    Liquidator Seeks Remand Of Reinsurer’s Dispute To Confirm Arbitration Award

    CHICAGO — An insolvent insurer’s liquidator on Oct. 29 moved to remand a reinsurer’s Illinois federal court dispute seeking confirmation of an arbitration award for $437,000 in attorney fees, and also filed its reply to a previous motion to dismiss or stay based on a lack of subject matter jurisdiction (Catalina Holdings (Bermuda) Ltd. v. Jennifer Hammer, No. 18-05642, N.D. Ill.).

  • October 31, 2018

    Woman: New Jersey Insurance Guaranty Association Breached Duty

    JERSEY CITY, N.J. — A woman alleges in an Oct. 29 complaint in New Jersey trial court that the New Jersey Property and Liability Insurance Guaranty Association (NJPLIGA) breached its statutory duty to provide benefits for personal injuries (Alma Colon v. New Jersey Property and Liability Insurance Guaranty Association, et al., No. HUD-L-004321-18, N.J. Super., Hudson Co.).

  • October 31, 2018

    Run-Off Insurer Opposes Reinsurer’s Dismissal Of Claims In Mishandling Suit

    NEW YORK — In a New York federal case alleging mismanagement and misuse of $320 million in investments, a run-off insurer argues in an Oct. 29 opposition that reinsurers and related entities fail to address allegations of their active participation in a fraudulent conspiracy in their motion to partially dismiss claims (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-06658, S.D. N.Y.).

  • October 25, 2018

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

    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 Oct. 23 (Milliman Inc., et al. v. Donald Roof, No. 18-00012, E.D. Ky., 2018 U.S. Dist. LEXIS 181652).

  • October 25, 2018

    Trial Justice: Insolvent Insurer Not Allowed To Prorate Asbestos Coverage

    NEW YORK — Midland Insurance Co., which is in liquidation, cannot prorate its asbestos coverage, a New York trial justice ruled Aug. 10, finding that a trust can pursue the full limits of excess policies issued by the insolvent insurer (In the matter of the liquidation of Midland Insurance Co., No. 041294/1986, N.Y. Sup., New York Co., 2018 N.Y. Misc. LEXIS 4668).

  • October 25, 2018

    Cause Requested On Why Liquidator’s Agreement On Reinsurance Should Be Denied

    NEW YORK — A New York justice on Oct. 5 ordered all parties interested in Realm National Insurance Co.’s liquidation to show cause why a commutation agreement regarding reinsurance billings should not be approved and why the estate should not be closed (In the matter of the liquidation of Realm National Insurance Co., No. 401876/05, N.Y. Sup., New York Co.).

  • October 22, 2018

    Insurer Accuses New York Financial Superintendent Of Double Standards

    NEW YORK — In an Oct. 19 complaint filed in a New York federal court, an insurer seeks redress for violation by the New York superintendent of financial services and the New York State Department of Financial Services (DFS) of the insurer’s equal protection rights “through their relentless campaign of selective enforcement of the law and application of arbitrary and ad hoc policies” (Park Insurance Co. v. Maria T. Vullo, et al., No. 18-09628, S.D. N.Y.).

  • October 22, 2018

    Parties Oppose Insolvent Insurers’ Bid To Abate Cross-Claim In Federal Court

    ST. LOUIS — In a breach of fiduciary duty lawsuit in a Missouri federal court involving the special deputy receiver for three insolvent insurers, parties argue in Oct. 19 filings that there is no reason to abstain or abate a cross-claim per the receiver’s request (Winner Road Properties LLC v. BMO Harris Bank, N.A. v. Jo Ann Howard & Associates, P.C., No. 16-1395, E.D. Mo.).

  • October 18, 2018

    Appeal To 5th Circuit Made In Criminal Case Over Insurer’s Liquidation

    NEW ORLEANS — In a criminal action over an auditor’s role in the liquidation of an insolvent insurer, a defendant on Sept. 19 appealed to the Fifth Circuit U.S. Court of Appeals a lower court’s ruling denying his motion for a certificate of innocence for his conviction for money laundering (United States v. Michael H. O’Keefe Sr., No. 18-31033, 5th Cir.).

  • October 18, 2018

    New Jersey Insurance Guaranty Association Sued For Bodily Injury

    NEW BRUNSWICK, N.J. — Following injuries from a car accident, a man seeks uninsured motorist benefits from the New Jersey Property-Liability Insurance Guaranty Association (NJPLIGA) in an Oct. 2 complaint filed in a New Jersey court (Jaime Alberto Torres v. Brian H. Getcliffe, et al., No. MID-L-005824-18, N.J. Super., Middlesex Co.).