Mealey's Insurance Insolvency

  • June 14, 2021

    Judge Dismisses Suit Over Truck Crash Judgment Involving Insolvent Insurer

    LOUISVILLE, Ky. — A federal judge in Kentucky on June 8 signed a stipulation dismissing all parties in a dispute arising from a $750,000 truck crash judgment five days after the plaintiff dismissed an insolvent insurer and its insured from the lawsuit.

  • June 07, 2021

    Insolvent Insurer, Insured Dismissed From Dispute Over Truck Crash Judgment

    LOUISVILLE, Ky. — A plaintiff on June 3 voluntarily dismissed an insolvent insurer and its insured from a dispute arising from a $750,000 truck crash judgment and said claims against the remaining defendants will be dismissed “in the very near future.”

  • June 03, 2021

    Panel Partly Reverses Order In Dispute Over Claim Against Insolvent Insurer

    FRANKFORT, Ky. — A Kentucky appeals panel on May 28 affirmed a lower court’s ruling as to the amount of a service provider’s $403,600.47 claim against an insolvent insurer’s estate but reversed the court’s ruling as to priority level of the claim, remanding for entry of an order designating the entire $403,600.47 as a residual claim under Kentucky's Insurers Rehabilitation and Liquidation Law (IRLL).

  • June 02, 2021

    Judge Certifies Question Over Insurance Liquidation Statute To S.D. High Court

    SIOUX FALLS, S.D. — A federal judge in South Dakota on June 1 certified a question to the South Dakota Supreme Court involving the state’s insurance liquidation statute in a lawsuit brought by the liquidator of ReliaMax Surety Co. (RSC) seeking a declaration that coverage exists under a claims-made excess insurance policy above a directors and officers (D&O) policy with regard to a $21 million wrongful acts claim.

  • May 27, 2021

    Judge Again Extends Stay Of SEC’s Case Over Schemes To Defraud Insurers, Trusts

    NEW YORK — A federal judge in New York on April 26 again granted an application by the U.S. Department of Justice seeking extension of a stay of the Securities and Exchange Commission’s lawsuit alleging that two individuals “perpetrated multiple schemes to defraud their advisory clients, which were insurance companies and reinsurance trusts.”

  • May 27, 2021

    Puerto Rico Insurance Commissioner: Stay Of Appeal Remains In Effect

    BOSTON — The Puerto Rico insurance commissioner and auxiliary rehabilitator on May 17 informed the First Circuit U.S. Court of Appeals that proceedings filed by the commonwealth of Puerto Rico under Title III of the Puerto Rico Oversight, Management and Economic Stability Act (PROMESA) for adjustment of its debts are ongoing and that the automatic stay of proceedings in their appeal over retaliation claims brought by the former employees of a liquidated insurer remains in effect.

  • May 26, 2021

    Insolvent Insurer Withdraws 2nd Circuit Appeal Following Stay Of $49M Judgment

    NEW YORK — Following a federal judge in New York’s stay of a $49,346,803 judgment entered against an insurer in a decades-old environmental contamination coverage dispute in light of a recent liquidation order, the judge on April 27 issued a mandate granting the insurer’s stipulation to withdraw its appeal arguing to the Second Circuit U.S. Court of Appeals that it cannot secure a supersedeas bond because it is insolvent.

  • May 25, 2021

    APAs Affirm Trustee’s Ability To Sell Life Insurance Policies In Their Entirety

    FORT LAUDERDALE, Fla. — A federal magistrate judge in Florida on May 22 held that asset purchase agreements (APA) affirm rather than preclude a trustee's ability to sell policies retained by investors in their entirety, including those policies in which an investor has purchased fractional interests, further finding that a 2015 agreement between the trustee and an investor does not confer upon the investor the right to “last look” and does require liquidation of the trust's policies on a policy to policy basis, recommending that the trustee’s motion for an order of instructions be granted in a Securities Exchange Commission lawsuit alleging fraudulent selling of investment interests in life insurance policies.

  • May 24, 2021

    Pennsylvania Judge Declares Bedivere Insurance Company Insolvent

    HARRISBURG, Pa. — A Pennsylvania judge on March 11 granted the state insurance commissioner’s petition to declare Bedivere Insurance Co. insolvent.

  • May 24, 2021

    Judge Cites ‘Haphazard’ Path Forward, Stays Case With Insolvent Asbestos Insurer

    NEW ORLEANS — A federal judge in Louisiana on May 19 stayed an asbestos case for six months after concluding that there was no way to properly proceed with the case while a Pennsylvania court’s stay for an insolvent insurer was in effect.

  • May 24, 2021

    Judge Stays Asbestos Case, Won’t Sever Claims Against Insolvent Insurer

    NEW ORLEANS — Court precedent and Louisiana law weigh against allowing an asbestos action involving an insolvent insurer and its insureds to proceed and severing those defendants from the action poses too many risks, a federal judge in Louisiana said May 19 in staying the case for six months.

  • May 20, 2021

    Insurance Guaranty Fund Appeals Federal Judge’s Dismissal Of Medicare Statute Suit

    CHICAGO — The Illinois Insurance Guaranty Fund’s (IIGF) on May 18 told a federal Illinois court that it is asking the Seventh Circuit U.S. Court of Appeals to review the court’s dismissal of its lawsuit seeking an interpretation of the federal Medicare Secondary Payer (MSP) statute, challenging the court’s April 23 ruling that the IIGF has no standing to bring its lawsuit and its claims lacks subject matter jurisdiction.

  • May 19, 2021

    Federal Circuit Court Affirms $24.5M Award Under ACA For Insurer’s Liquidator

    WASHINGTON, D.C. — The Federal Circuit U.S. Court of Appeals on May 17 rejected the U.S. government’s appeal seeking to vacate a $24.5 million award for an insolvent insurer’s liquidator, finding that the government does not have a right to offset Patient Protection and Affordable Care Act (ACA) obligations during the insolvency proceeding and the U.S. Court of Federal Claims’ money judgment was proper.

  • May 14, 2021

    Judge Dismisses Suit After Insolvent Insurer’s Liquidator, Services Provider Settle

    FRANKFORT, Ky. — A federal judge in Kentucky on May 5 dismissed with prejudice an insolvent insurer’s liquidator breach of contract lawsuit against an administrative services provider after the parties voluntarily dismissed with prejudice all claims and counterclaims as settled following arbitration.

  • May 13, 2021

    Florida Judge: Sufficient Grounds Exist For Liquidation Of Insolvent Insurer

    TALLAHASSEE, Fla. — A Florida judge on April 14 appointed the state’s Department of Financial Services as receiver of American Capital Assurance Corp., finding that the evidence presented in the department’s petition for a consent order provides sufficient grounds for the liquidation of the insurer.

  • May 13, 2021

    Broker Dismissed From Independent Fiduciary’s Suit Over Insolvent Health Plan

    CHICAGO — A federal judge in Illinois on May 3 dismissed with prejudice one insurance broker from an independent fiduciary’s lawsuit alleging that brokers breached their duty of care because they knew or should have known that a multiple employer welfare arrangement (MEWA) was not in compliance with its structural requirements and was not financially sound after the fiduciary indicated that it had reached a settlement with the broker.

  • May 13, 2021

    Judge Signs Order Proposing To Dismiss Insolvent Insurer In Dispute Over Truck Crash

    LOUISVILLE, Ky. — A federal judge in Kentucky on May 6 signed a proposed order indicating that the plaintiff in a dispute arising from a $750,000 truck crash judgment agrees to dismiss the lawsuit with prejudice against the settling defendants and an insolvent insurer.

  • May 07, 2021

    Parties Settling $750,000 Truck Crash Judgment Propose To Dismiss Insolvent Insurer

    LOUISVILLE, Ky. — Parties involved in a dispute arising from a $750,000 truck crash judgment on May 5 filed a notice of withdrawal of a joint motion for approval of a settlement and a proposed order indicating that the plaintiff agrees to dismiss the lawsuit with prejudice against the settling defendants and an insolvent insurer.

  • April 29, 2021

    Louisiana Majority Refuses To Review UM Coverage Suit Over Personal Injuries

    NEW ORLEANS — A majority of the Louisiana Supreme Court on April 27 refused to review an appellant court’s ruling that reversed a lower court’s judgment in a dispute over uninsured motorist coverage involving the Texas Property and Casualty Insurance Guaranty Association (TPCIA) and two other insurers.

  • April 27, 2021

    Federal Judge Dismisses Insurance Guaranty Fund’s Medicare Statute Suit

    CHICAGO — A federal judge in Illinois on April 23 granted the acting secretary of Health and Human Services’ motion to dismiss the Illinois Insurance Guaranty Fund’s (IIGF) suit seeking an interpretation of the federal Medicare Secondary Payer (MSP) statute, finding that the IIGF has no standing to bring its lawsuit and its claims lacks subject matter jurisdiction.

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