Mealey's Insurance Insolvency

  • August 24, 2020

    Parties Seek Stay Of Briefing In Insurer's Redress Suit In Light Of Liquidation

    NEW YORK — New York Superintendent of Financial Services Linda Lacewell wrote to a New York federal court on Aug. 21 asking for an insurer's lawsuit seeking redress for violation of its equal protection rights to be held in abeyance until a pending liquidation proceeding against the insurer is resolved (Park Insurance Co. v. Maria T. Vullo, et al., No. 18-9628, S.D. N.Y.).

  • August 24, 2020

    New York Justice Seeks Input On Liquidation Order Request For Insurer

    NEW YORK — A New York justice on July 29 asked for cause from any parties on why she should not place Quality Health Plans of New York Inc. (QHPNY) into liquidation (In the matter of Quality Health Plans of New York, Inc., No. 451399/2020, N.Y. Sup., New York Co.).

  • August 14, 2020

    Government Gives Reasons On Sentencing For Insurance Businessmen's Bribery Suit

    STATESVILLE, N.C. — The U.S. government on Aug. 12 offered sentencing guidelines to a North Carolina federal judge on guilty verdicts against two businessmen and a guilty plea from the North Carolina Republican Party's former chairman regarding a $2 million bribe to the state's insurance commissioner to remove the public official overseeing the regulation of the one businessman's insurance companies (United States v. Greg E. Lindberg, et al., No. 19-CR-00022, W.D. N.C.).

  • August 14, 2020

    Justice Dismisses Parties From Suit Filed By Insolvent Reinsurer Shareholder

    NEW YORK — Two directors of an insolvent reinsurer and a private equity firm on July 31 were dismissed by a New York justice from a shareholder's breach of fiduciary duty suit (Paul Davis v. Larry Port, et al., No. 654027/2013, N.Y. Sup., New York Co., 2020 N.Y. Misc. LEXIS 4061).

  • August 13, 2020

    Borrower:  No Breach To Insolvent Insurer Of Loan And Security Agreement

    RALEIGH, N.C. — A borrower under a loan and security agreement in an Aug. 10 answer denies an insolvent health insurer's claims for breach of contract and for foreclosure of collateral in the insurer's North Carolina federal court suit seeking $37,104,611 under the agreement (Colorado Bankers Life Insurance Company v. Kite Asset Management, LLC, No. 20-371, E.D. N.C.).

  • August 11, 2020

    Insolvent Insurer Seeks $45M Due To Default Of Loan By Borrower

    ELIZABETH CITY, N.C. — An insurer, which is in rehabilitation, filed a breach of contract complaint on Aug. 10 in a North Carolina federal court seeking to recover $45,675,960 under a loan and security 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.).

  • August 10, 2020

    Panel: No Gross Negligence By Board Of Directors For Insolvent Health Insurer

    FRANKFORT, Ky. — The deputy liquidator of a health insurer failed to establish any genuine issues of material fact showing gross negligence by the insurer's board of directors, the board's chairman and a board representative, the Kentucky Court of Appeals ruled Aug. 7 (Donald Roof v. Janie Miller, et al., No. 2018-CA-1289-MR, Ky. App., 2020 Ky. App. Unpub. LEXIS 521).

  • August 10, 2020

    Insurer's Receiver Sues For Denied Coverage In Lawsuit Against Director

    OKLAHOMA CITY — An insurer breached its duties under a "management indemnity package" policy with an insolvent insurer by refusing to defend a director and officer in a breach of fiduciary suit, the insurer's receiver says in an Aug. 7 complaint filed in Oklahoma federal court (State of Oklahoma, et al. v. Westchester Fire Insurance Company, No. 20-782, W.D. Okla.).

  • August 05, 2020

    Judge Upholds Jury's Guilty Verdicts On Two Insurance Businessmen's Wire Fraud

    STATESVILLE, N.C. — A North Carolina federal judge on Aug. 4 declined to overturn jury verdicts finding two businessmen guilty of conspiring to commit honest services wire fraud and federal funds bribery by offering millions of dollars in campaign contributions to the state's insurance commissioner in exchange for removing the public official responsible for overseeing the regulation of the one businessman's insurance companies (United States of America v. Greg E. Lindberg, et al., No. 19-CR-00022, W.D. N.C., 2020 U.S. Dist. LEXIS 138475).

  • August 04, 2020

    9th Circuit:  Rehearing Bid Withdrawn In Insolvent Surety's Reimbursement Case

    SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on Aug. 3 granted the withdrawal of builders' petition for a rehearing of a summary judgment ruling in an insolvent surety's case alleging that the builders breached a continuing agreement of indemnification (CAI) by refusing to reimburse claims of $1,925,880.84 (Western Insurance Co. in liquidation v. Frontier Homes LLC, et al., No. 19-55101, 9th Cir., 2020 U.S. App. LEXIS 24410).

  • August 03, 2020

    Judge Confirms Insurer's $524M Arbitration Award Against Bermuda Reinsurer

    NEW YORK — A federal judge in New York on July 30 confirmed a $524,009,051.26 arbitration award issued in favor of a Puerto Rico life insurer against a Bermuda reinsurer in their dispute over alleged improper asset divestments for a reinsurance trust (PB Life and Annuity Co. Ltd. v. Universal Life Insurance Co., No. 20-2284, S.D. N.Y., 2020 U.S. Dist. LEXIS 135540).

  • July 31, 2020

    Reinsurer's Liquidator Asks For Order Closing Related Bankruptcy Proceeding

    NEW YORK — A foreign representative requests on July 28 a New York bankruptcy court to close a reinsurer's proceeding because there are no assets for distribution following resolution of six creditor suits (In re Beechwood Re, No. 19-11560, Chapter 15, S.D. N.Y. Bkcy.).

  • July 30, 2020

    Insolvent Insurer, Parties Dismiss Dispute Over Advancement Of Fees

    NEW YORK — A New York federal judge on July 28 ordered the voluntary dismissal of a case against Senior Health Insurance Company of Pennsylvania (SHIP), in rehabilitation, over the advancement and indemnification of fees under investment management agreements (IMAs) (B Asset Manager L.P., et al. v. Senior Health Insurance Company of Pennsylvania, No. 19-4487, S.D. N.Y.).

  • July 28, 2020

    Judge Sides With IRS On Priority Claim For Year Of Insurer's Bankruptcy Filing

    WILMINGTON, Del. — The Internal Revenue Service is entitled to priority as an administrative expense in an insurer's bankruptcy proceeding because its claim concerning the insurer's tax obligations was incurred by the estate post-petition, a Delaware federal judge held July 27, overturning a bankruptcy judge's order on how to treat a "straddle year" for federal income tax (In re Affirmative Insurance Holdings, Inc., et al., No. 15-12136; [United States of America v. Don A. Beskrone, Chapter 7 Trustee], 19-2034, D. Del., 2020 U.S. Dist. LEXIS 132390).

  • July 23, 2020

    Government Seeks To Vacate $24.5M Award Under ACA For Insurer's Liquidator

    WASHINGTON, D.C. — The U.S. government on July 17 asked the Federal Circuit U.S. Court of Appeals to vacate a $24.5 million award for an insolvent insurer's liquidator because Colorado's insolvency law cannot extinguish or delay an insurer's obligation to make payments owed under the Patient Protection and Affordable Care Act's (ACA) risk adjustment program (Michael Conway v. The United States, No. 20-1292, Fed. Cir.).

  • July 06, 2020

    COMMENTARY: Must Reinsurers Follow Their Cedants' COVID-19 Related Claim Settlements?

    By Jonathan Sacher and Oliver Saunders

  • July 21, 2020

    Fairbanks Insurer Loses Bid To Sidestep Stay To Litigate Coverage Action

    ROME, Ga. — A Georgia federal bankruptcy judge on July 16 denied a request by an insurer of Chapter 11 debtor The Fairbanks Co. to lift the automatic bankruptcy stay to allow an insurance coverage suit to proceed, a move that was opposed by Fairbanks (In re The Fairbanks Company, No. 18-41768, N.D. Ga. Bkcy.).

  • July 21, 2020

    Insurers Denied Certification For Appeal Of Ruling In Reinsurer’s Rehabilitation

    WILMINGTON, Del. — Noting the “many moving pieces at this stage of a complex insurance receivership proceeding,” a Delaware chancellor on July 20 denied certification to life insurers of an interlocutory appeal of a ruling in a reinsurer’s rehabilitation over offsets or recoupment of reinsurance premiums and claim payments under a settlement agreement (In matter of Scottish Re [U.S.], Inc. in rehabilitation, No. 2019-0175-AGB, Del. Chanc., 2020 Del. Ch. LEXIS 243).

  • July 21, 2020

    COMMENTARY: Reinsurance In The Time Of COVID-19

    By Sam Tacey, Paul Moura and Ben Sharrock

  • July 17, 2020

    Judge Approves Final Discharge In Aries Insurance Company’s Receivership

    TALLAHASSEE, Fla. — A final discharge and the destruction of obsolete records were approved June 17 by a Florida judge in the receivership proceedings of Aries Insurance Co. (In re: the receivership of Aries Insurance Company, No. 02-CA-1128, Fla. Cir., Leon Co.).

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