Mealey's Insurance Insolvency

  • September 29, 2020

    Former Hedge Funds Executive Seeks To Bar Duplicative Claims From Jury Instructions

    NEW YORK — Prior to trial in a case over the collapse of hedge funds, a former member of Platinum Management (NY) LLC on Sept. 25 asked a New York federal court to exclude jury instructions on claims for fraud, constructive fraud, aiding and abetting breach of fiduciary duty and aiding and abetting fraud as duplicative and to consolidate two breach of fiduciary claims so a jury will be charged with only one (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.).

  • September 28, 2020

    New York Justice Places Park Insurance Company Into Liquidation

    NEW YORK — A New York justice ordered Park Insurance Co. into liquidation on Sept. 22, noting, among other reasons, that the taxi insurer's surplus had been reduced by $1.75 million for an unapproved reinsurance agreement with a related entity (Maria Vullo v. Park Insurance Company, No. 452877/2017, N.Y. Sup., New York Co., 2020 N.Y. Misc. LEXIS 6408).

  • September 25, 2020

    Judge: Jurisdiction Exists Over Insolvent Insurer In Suit For $750,000 Judgment

    LOUISVILLE, Ky. — Despite an insolvent insurer's contention that jurisdiction resides in its liquidation proceeding, a Kentucky federal judge on Sept. 24 refused to dismiss or remand a claimant's suit against the insurer and others over a $750,000 truck crash judgment because there is jurisdiction given the limited scope of relief being sought (George Gillett v. Spirit Commercial Auto Risk Retention Group, Inc., et al., No. 19-260, W.D. Ky., 2020 U.S. Dist. LEXIS 175615).

  • September 24, 2020

    Entities: Claims Arising From Trust Preferred Securities Are Part Of Insurer's Liquidation

    SAN FRANCISCO — Defendants in a New York action concerning trust preferred securities (TruPS) argue in an Aug. 28 response brief that a lower court properly enjoined the New York plaintiffs' claims potentially worth hundreds of millions of dollars because the claims were based on damages to an insolvent insurer and, thus, property to the insurer's estate and liquidation proceeding (Dave Jones v. CastlePoint National Insurance Co., No. A158646, Calif. App., 1st Dist., Div. 5).

  • September 22, 2020

    Bankrupt Insurance Firm Seeks Approval Of $11M Settlement With Directors

    WILMINGTON, Del. — The litigation trustee for Patriot National Inc., a bankrupt insurance firm, asks a Delaware bankruptcy court in a Sept. 18 motion to approve an $11 million settlement with 10 former directors and officers as to a separate Delaware state court suit over their alleged waste of $250 million (In re:  Patriot National, Inc., Chapter 11, No. 18-10189, D. Del. Bkcy.).

  • September 22, 2020

    Reliance Liquidator Seeks Approval Of $152M For Notices Of Determination

    HARRISBURG, Pa. — In her Sept. 16 report, Reliance Insurance Co.'s liquidator recommends that a Pennsylvania trial court approve and allow $152,356,646.13 for 34,443 notices of determination (NODs) (In re:  Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

  • September 21, 2020

    Indemnification Counterclaim Should Be Dismissed, Hedge Funds Liquidators Assert

    NEW YORK — The liquidators for two hedge funds respond in a Sept. 17 answer that a New York federal court should dismiss an indemnification counterclaim brought by a former member of Platinum Management (NY) LLC in the liquidators' dispute over the collapse of the funds as a result of a number of schemes (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.).

  • September 21, 2020

    Borrower Counterclaims For Breach Of Contract, Duty Against Insolvent Insurer

    RALEIGH, N.C. — A borrower in a loan and security agreement on Sept. 17 answered an insolvent insurer's breach of contract complaint and filed counterclaims in the North Carolina federal court action for breach of contract, bad faith and breach of fiduciary duty (Colorado Bankers Life Insurance Company v. TAC Investments, LLC, No. 20-453, E.D. N.C.).

  • September 17, 2020

    Insurer's Liquidators Ask U.S. High Court To Hear Case Over Arbitration Issue

    WASHINGTON, D.C. — The liquidator and special deputy liquidator of an insolvent health insurer on Aug. 28 asked the U.S. Supreme Court to hear their case on whether they should be compelled to arbitrate common-law tort claims against an actuarial 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., 2020 U.S. S. CT. BRIEFS LEXIS 2654).

  • September 17, 2020

    U.S. High Court Asked To Hear Arbitration Issue Over Insurer Rehabilitator's Claim

    WASHINGTON, D.C. — An actuarial services company on Sept. 3 asked the U.S. Supreme Court to take up its case on whether the Louisiana insurance commissioner, as rehabilitator for a health insurance cooperative, can pursue a professional negligence suit in court or is bound by an arbitration clause in an agreement between it and the cooperative (Milliman, Inc. v. James J. Donelon, No. 20-299, U.S. Sup., 2020 U.S. S. CT. BRIEFS LEXIS 2728).

  • September 14, 2020

    Complaint:  Insurer's Plan Of Rehabilitation Alters Insureds' Rates, Benefits

    BATON ROUGE, La. — Louisiana's insurance commissioner on Sept. 11 filed a complaint in Louisiana federal court seeking a declaratory judgment that the rehabilitator for Senior Health Insurance Company of Pennsylvania (SHIP) cannot alter, without his approval, the rates and benefits for SHIP's Louisiana policyholders (James J. Donelon v. Jessica K. Altman, No. 20-604, M.D. La.).

  • September 10, 2020

    Justice Asks Interested Parties To Show Cause On Insurer's Liquidation

    NEW YORK — A New York justice on Sept. 4 ordered interested parties to provide any reasons on why OneTitle National Guaranty Co. Inc. should not be placed into liquidation and the state's superintendent of financial services appointed as the insurer's liquidator (In matter of OneTitle National Guaranty Company, Inc., No. 451834/2020, N.Y. Sup., New York Co.).

  • September 10, 2020

    Delaware High Court Denies Insurers' Appeal Of Ruling In Reinsurer's Rehabilitation

    WILMINGTON, Del. — The Delaware Supreme Court on Sept. 4 denied life insurers' appeals over efforts in a reinsurer's rehabilitation to obtain offsets or recoupment of claim payments and reinsurance premiums under a settlement agreement because the insurers could still recover on their unpaid claims as part of the rehabilitation process (Protective Life Insurance Company, et al. v. Trinidad Navarro, Nos. 217, 2020 & 218, 2020, Del. Sup., 2020 Del. LEXIS 300).

  • September 10, 2020

    Breach Of Contract, Bad Faith Counterclaims Filed Against Insolvent Insurer

    ELIZABETH CITY, N.C. — Parties to a loan and security agreement on Sept. 4 filed counterclaims against an insurer, which is in rehabilitation, for breach of contract, bad faith and breach of fiduciary duty in a North Carolina federal court case over the insurer's efforts to recover $45,675,960 under the agreement based upon a borrower's default  (Colorado Bankers Life Insurance Company v. Summerville Asset Management, LLC, et al., No. 20-432, E.D. N.C.).

  • September 09, 2020

    Florida High Court Denies Review Over Attorney Fees Case Between Insured, FIGA

    TALLAHASSEE, Fla. — The Florida Supreme Court, without explanation, on Sept. 4 declined to exercise jurisdiction over an insured's sinkhole claim dispute with the Florida Insurance Guaranty Association (FIGA), substituting for an insolvent insurer, with regard to a lower court's application of a 2016 decision to the issue of attorney fees and costs (Phylis Heid v. Florida Insurance Guaranty Association, No. SC20-912, Fla. Sup., 2020 Fla. LEXIS 1481).

  • September 04, 2020

    Receiver Seeks $1M From Insurer For Settlement Of Suit Against Captive Manager

    NEW HAVEN, Conn. — The receiver of an insolvent insurer on Sept. 3 filed a complaint in Connecticut federal court seeking to recover $1 million from Allied World Surplus Lines Insurance Co. from the insolvent insurer's settlement of negligence allegations against a captive manager, insured by Allied World, regarding services that caused the insurer's liquidation (Trinidad Navarro v. Allied World Surplus Lines Insurance Company, No. 20-1305, D. Conn.).

  • September 03, 2020

    Insurer's Liquidator Agrees To Arbitration With Reinsurers Of $150M Hurricane Loss Case

    BOSTON — Integrand Assurance Co.'s liquidator on Aug. 11 dismissed an appeal with the First Circuit U.S. Court of Appeals and agreed to arbitrate with reinsurers a $150 million hurricane loss dispute (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 20-1534, 1st Cir.).

  • August 31, 2020

    Platinum Former Member Cross-Claims In Hedge Funds Collapse Litigation

    NEW YORK — A former member of Platinum Management (NY) LLC filed an amended answer and cross-claims on Aug. 28 for breach of fiduciary duty against defendants in a New York federal court lawsuit brought by the liquidators of two hedge funds regarding the collapse of the funds as a result of a number of schemes (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.).

  • August 26, 2020

    Judge Issues Sentences Against 2 Businessmen In Insurance Bribery Suit

    STATESVILLE, N.C. — A multinational investment company's founder and a company consultant have been sentenced for their roles in a $2 million bribery scheme involving the state's insurance commissioner and a request to remove the public official overseeing the regulation of the one businessman's insurance companies, according an Aug. 19 press release from the U.S. Department of Justice (United States v. Greg E. Lindberg, et al., No. 19-CR-00022, W.D. N.C.).

  • August 26, 2020

    Insolvent Insurers' Trustee Seeks To Make $49.4M Distribution

    LOS ANGELES — California's insurance commissioner as trustee for three insurance trusts on Aug. 10 asked a California trial court for permission to pay additional sums of $49.4 million to creditors, noting that "repayment of creditors is a key goal of any receivership" (Ricardo Lara v. Mission Insurance Company, et al., No. 572-724, Calif. Super., Los Angeles Co.).

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