Mealey's Insurance Insolvency

  • November 05, 2020

    Insurer’s Receiver Argues Standing Exists To Assert Claim Against D&O Insurer

    OKLAHOMA CITY — BancInsure Inc.’s receiver tells an Oklahoma federal court in a Nov. 4 brief that, as a contracting party under a directors and officers (D&O) insurance policy, he has standing to seek a declaration of rights under the policy, including those belonging to third-party beneficiaries (Glen Mulready v. Westchester Fire Insurance Company, No. 20-782, W.D. Okla.).

  • November 04, 2020

    Insurer’s Liquidator Accuses Insurance Broker, Officers Of RICO Scheme To Defraud

    BURLINGTON, Vt. — The liquidator for Global Hawk Insurance Company Risk Retention Group filed a complaint on Oct. 30 in Vermont federal court alleging a Racketeer Influenced and Corrupt Organizations Act scheme to defraud the insurer and policyholders “through misappropriation of its assets and misrepresentation of its financial condition so it could continue in business for their benefit” (Michael S. Pieciak v. Jasbir S. Thandi, et al., No. 20-173, D. Vt.).

  • November 03, 2020

    Government Asks For Debt Setoffs From Insolvent Insurers In ACA Risk-Corridor Case

    WASHINGTON, D.C. — The government in an Oct. 30 amended answer and counterclaim filed in the U.S. Court of Federal Claims seeks setoffs against risk-corridor liabilities it owes to largely insolvent insurers under the Patient Protection and Affordable Care Act (ACA) risk corridor (Health Republic Insurance Co. v. United States, No. 16-259C, Fed. Clms.).

  • November 02, 2020

    Loan Borrower, Pledgors Counterclaim Against Insurer In Rehabilitation

    RALEIGH, N.C. — A borrower and pledgors to a loan agreement filed counterclaims in a North Carolina federal court on Oct. 29 for breach of contract, bad faith and breach of fiduciary duty against a health insurer in rehabilitation (Colorado Bankers Life Insurance Company v. Tybee Island Asset Management, LLC, et al., No. 20-520, E.D. N.C.).

  • November 02, 2020

    Parties Ask For Adoption Of Report Denying Remand In Insurer’s Rehabilitator Suit

    BATON ROUGE, La. — The rehabilitator for an insolvent insurer failed to assert a Caremark claim against a former director of the insurer’s parent company, defendants argue in an Oct. 30 brief, asking for the adoption of a Louisiana federal magistrate judge’s report recommending denial of remand in a lawsuit regarding loans that allegedly misled state insurance regulators on the insurer’s finances (James J. Donelon v. Jeffrey C. Pollick, et al., No. 20-177, M.D. La.).

  • November 02, 2020

    Insurer Seeks Dismissal Of Receiver’s Breach Of Contract Lawsuit For Lack Of Claims

    NEW HAVEN, Conn. — An insurer for a captive manager argues to a Connecticut federal court in an Oct. 30 motion to dismiss that its policy limits were already satisfied regarding settlement of negligence allegations by the receiver of an insolvent insurer against the captive manager (Trinidad Navarro v. Allied World Surplus Lines Insurance Company, No. 20-1305, D. Conn.).

  • October 30, 2020

    Stay Of Discovery Sought In Suit Over $750,000 Judgment Against Insolvent Insurer

    LOUISVILLE, Ky. — A transportation managing general underwriter and its related entities in an Oct. 29 motion ask a Kentucky federal court to stay “broad and costly discovery” in a claimant’s dispute against them and an insolvent insurer with regard to a $750,000 truck crash judgment (George Gillett v. Spirit Commercial Auto Risk Retention Group, Inc., et al., No. 19-260, W.D. Ky.).

  • October 29, 2020

    Actuarial Firm: No Federal Question In High Court Petition From Insurer’s Liquidators

    WASHINGTON, D.C. — An actuarial firm argues in an Oct. 28 brief that there is no federal question for the U.S. Supreme Court to consider over an Iowa Supreme Court’s ruling compelling an insolvent health insurer’s liquidator and special deputy liquidator to arbitrate common-law tort claims against the firm based upon an arbitration provision in a preinsolvency agreement between the insurer and the firm (Doug Ommen, et al. v. Milliman, Inc., et al., No. 20-249, U.S. Sup.).

  • October 23, 2020

    Hedge Funds Liquidators Oppose Exclusion Of Claims, Evidence Before Trial

    NEW YORK — Hedge funds liquidators filed several opposition briefs on Oct. 19 to the motions brought by a former member of Platinum Management (NY) LLC seeking to preclude certain evidence and claims ahead of his New York federal court trial regarding the former member’s alleged role in the hedge funds’ collapse (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • October 23, 2020

    Plane Crash Plaintiffs: Reinsurer’s Removal To Federal Court Was Premature

    MIAMI — In “an unusual procedural posture,” an English reinsurer preemptively removed a not-yet-filed third-party bad faith complaint to Florida federal court, individuals who were awarded a $844 million default judgment in connection with a plane crash near Medellin, Colombia, argue in their Oct. 19 motion for remand to state court where the original suit was filed (Priscila Elen De Souza Lima, et al. v. Linea Aerea Merida Internacional De Aviacion, et al., No. 20-23631, S.D. Fla.).

  • October 22, 2020

    Insurer:  California Regulators Filed Bad Faith Conservatorship Plan On Former Affiliate

    SACRAMENTO, Calif. — Applied Underwriters Inc. filed a complaint on Oct. 20 in California federal court accusing the state’s insurance department of an “unlawful and bad faith campaign” to place a former affiliate of Applied into conservatorship in response to several favorable rulings to Applied in litigation involving its reinsurance participation agreement (RPA) with insureds (Applied Underwriters, Inc., et al. v. Ricardo Lara, et al., No. 20-1029, E.D. Calif.).

  • October 20, 2020

    Bankruptcy Judge Grants $14M Settlements In Favor Of Patriot National Inc.

    WILMINGTON, Del. — A Delaware bankruptcy judge on Oct. 16 approved two separate settlements totaling close to $14 million that were reached between Patriot National Inc.’s litigation trustee and 13 former directors and officers of the bankrupt insurance firm over their alleged corporate waste (In re:  Patriot National, Inc., Chapter 11, No. 18-10189, D. Del. Bkcy.).

  • October 20, 2020

    Health Plan’s Receiver Seeks $6M Default Judgments In Suit Over Fraudulent Transactions

    ANDERSON, S.C. — The special deputy receiver of a multiple-employer self-insured health plan on Oct. 16 asked a South Carolina federal court for default judgments worth $6 million against parties being accusing of defrauding the health plan by entering into fraudulent transactions via letters of credit (LOCs) (Michael J. FitzGibbons v. Alton Atkinson, et al., No. 17-2092, D. S.C.).

  • October 20, 2020

    Judge Stays Insurer’s Redress Suit In Light Of Liquidation Order Appeal

    NEW YORK — A New York federal judge on Oct. 16 issued a further stay of an insurer’s lawsuit seeking redress for violation of its equal protection rights against New York Superintendent of Financial Services Linda Lacewell in light of the insurer’s appeal of a recent liquidation order against it (Park Insurance Co. v. Maria T. Vullo, et al., No. 18-9628, S.D. N.Y.).

  • October 19, 2020

    Judge: United States May Seek Debt Setoffs In ACA Risk-Corridor Case

    WASHINGTON, D.C. — The government may amend its answer to seek setoffs against risk-corridor liabilities it owes to largely insolvent insurers under the Patient Protection and Affordable Care Act (ACA) risk corridor, a federal judge in the U.S. Court of Federal Claims said Sept. 30 in finding that amendment would be neither untimely nor prejudicial (Health Republic Insurance Co. v. United States, No. 16-259C, Fed. Clms., 2020 U.S. Claims LEXIS 1898).

  • October 16, 2020

    Reliance Liquidator Seeks Approval Of $16.9M For Final Notices Of Determination

    HARRISBURG, Pa. — The liquidator of Reliance Insurance Co. in an Oct. 13 application asks a Pennsylvania trial court for an order approving her recommendation on the last notices of determination (NODs) for state guaranty associations, which includes an allowed amount of $16.9 million for class (e) claims (In re:  Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

  • October 16, 2020

    Justice Places OneTitle National Guaranty Co. Inc. Into Liquidation

    NEW YORK — OneTitle National Guaranty Co. Inc. was ordered into liquidation on Oct. 6 by a New York justice who also appointed the state’s superintendent of Financial Services as the liquidator (In matter of OneTitle National Guaranty Company, Inc., No. 451834/2020, N.Y. Sup., New York Co.).

  • October 15, 2020

    Insurer’s Receiver Has No Right To Assert Direct Claims, D&O Insurer Says

    OKLAHOMA CITY — BancInsure Inc.’s receiver has no right under Oklahoma law to assert direct claims against a directors and officers (D&O) insurer arising from the denial of coverage to a BancInsure director, the D&O insurer tells an Oklahoma federal court in an Oct. 14  motion to dismiss (Glen Mulready v. Westchester Fire Insurance Company, No. 20-782, W.D. Okla.).

  • October 15, 2020

    Former Executive Of Hedge Funds Seeks To Exclude Punitive Damages At Trial

    NEW YORK — A former member of Platinum Management (NY) LLC on Sept. 29 asked a New York federal court to preclude any references to punitive damages in his trial over a breach of fiduciary claim regarding the collapse of hedge funds and to exclude punitive damages from the jury’s instructions (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • October 14, 2020

    Insurer In Default For Not Responding To Breach Of Contract Case, Insured Says

    NEWARK, N.J. — An industrial equipment supplier on Oct. 13 asked a New Jersey federal court to enter a default against an insurance company in its breach of contract case regarding the insurer’s refusal to pay for an environmental investigation and remediation at its property (Industrial Corner Corp. v. Public Service Mutual Insurance Company, No. 20-6677, D. N.J.).

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