We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Mealey's Insurance Insolvency

  • 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.).

  • October 18, 2018

    Home’s Liquidator Seeks Approval Of $700,000 Settlement Agreement

    CONCORD, N.H. — The liquidator of The Home Insurance Co. on Sept. 28 asked a New Hampshire trial court to approve the allowance of a $700,000 settlement amount regarding claims for asbestos, lead, silica and benzene (In the matter of the liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).

  • October 18, 2018

    Opening Briefs Offered In Suit Over Reimbursement Demands Made To CIGA

    SAN FRANCISCO — In appeals regarding the vacating and setting aside of three reimbursement demands made to the California Insurance Guarantee Association (CIGA), the state insurance guaranty association and U.S. Secretary of Health and Human Services Alex Azar II recently filed their opening briefs with the Ninth Circuit U.S. Court of Appeals (California Insurance Guarantee Association v. Alex Azar II, et al., Nos. 17-56526 & 17-56528, 9th Cir.).

  • October 18, 2018

    Reinsurers Seek Partial Dismissal Of Run-Off Insurer’s Mismanagement Lawsuit

    NEW YORK — In a run-off insurer’s New York federal case alleging mismanagement and misuse of $320 million in investments, reinsurers, their affiliates and current and former owners, officers and insiders in an Oct. 15 motion seek partial dismissal of all claims that are duplicative of the ones for breach of contract (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-06658, S.D. N.Y.).

  • October 18, 2018

    Reinsurer Asks Court To Confirm Arbitration Award Against Insolvent Insurer

    CHICAGO — Opposing a request for dismissal by an insolvent insurer’s liquidator, a reinsurer argues in an Oct. 15 brief that an Illinois federal court has jurisdiction to confirm an arbitration award for $437,000 in attorney fees (Catalina Holdings (Bermuda) Ltd. v. Jennifer Hammer, No. 18-05642, N.D. Ill.).

  • October 11, 2018

    Insurer Denies Contractual Indemnification Allegations Asserted By Bank

    COLUMBIA, S.C. — In an Oct. 1 brief in South Carolina federal court, an insurer denies allegations asserted in a contractual indemnification counterclaim by a bank being sued for its role as trustee of a reinsurance trust for an insolvent insurer (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).

  • October 10, 2018

    Briefs On Discovery Heard In Dispute Over Handling Of Insolvent Insurers’ Funds

    ST. LOUIS — In a dispute over the mishandling of funds belonging to insolvent funeral insurers, a Missouri federal judge was recently briefed on a motion to compel discovery regarding expert witness meetings held on behalf of state insurance guaranty associations (Jo Ann Howard & Associates P.C., et al. v. J. Douglas Cassity, et al., No. 09-01252, E.D. Mo.).

  • October 8, 2018

    Reinsurance Intermediaries Seek Document Production In Negligence Lawsuit

    OKLAHOMA CITY — Reinsurance intermediaries in a Sept. 26 motion ask that an Oklahoma federal court compel an insolvent insurer’s receiver to produce a settlement agreement regarding an underlying action as it relates to the receiver’s lawsuit alleging negligence in reinsurance services provided to the insurer (Oklahoma, et al. v. Axiom Re LP, et al., No. 17-0484, W.D. Okla.).

  • October 2, 2018

    Panel: Insurer’s Liquidator Properly Disallowed School’s Claim Against Surety

    CHICAGO — In an insurer’s liquidation proceeding, an Illinois appeals panel on Sept. 28 ruled that a lower court properly disallowed a school district’s claim against a surety for a construction project (Jennifer Hammer v. Lumbermens Mutual Casualty Co., et al., No. 1-17-1613, Ill. App., 1st Dist., Div. 6, 2018 Ill. App. Unpub. LEXIS 1677).

  • October 1, 2018

    Illinois Supreme Court Denies Appeal In Insolvent Insurer’s Coverage Dispute

    SPRINGFIELD, Ill. — The Illinois Supreme Court on Sept. 26 denied a petition for leave to appeal a lower court’s ruling that a cab company was not covered by the Illinois Insurance Guaranty Fund (IIGF) under an insolvent insurer’s policy for an underlying personal injury case because the accident occurred outside the time the subject taxi was covered (The Illinois Insurance Guaranty Fund v. Israel P. Nwidor, et al., No. 123738, Ill. Sup., 2018 Ill. LEXIS 855).

  • October 1, 2018

    Judge Conducts De Novo Review, Grants Sanctions To Insolvent Insurer

    DALLAS — After conducting a de novo review in a tortious interference case, a Texas federal judge on Sept. 26 adopted a magistrate judge’s recommendation to grant sanctions to an insolvent insurer against a defendant for failing to respond to discovery requests (Lincoln General Insurance Co. v. James Thornton Maxwell, No. 16-3198, N.D. Texas, 2018 U.S. Dist. LEXIS 165559).

  • October 1, 2018

    Panel: Error In Denial Of Credit To Louisiana Insurance Guaranty Association

    SHREVEPORT, La. — A lower court erred in denying a statutory credit of $15,161.49 to the Louisiana Insurance Guaranty Association (LIGA) after it stepped into the shoes of an insolvent insurer in a personal injury lawsuit, a Louisiana appeals panel held Sept. 26 (Alcender Williams Jr. v. USAgencies Insurance Company Inc., et al., No. 52,071-CW, La. App., 2nd Cir., 2018 La. App. LEXIS 1819).

  • September 27, 2018

    Justice Seeks Objections On Insolvent Insurer’s Claims Classification Procedure

    NEW YORK — A New York justice on Aug. 20 ordered for anyone to show cause why he should not approve a judicial review of the classification and adjudication of claims submitted in an insolvent insurer’s liquidation proceedings (In the matter of liquidation of American Medical and Life Insurance Co., No. 452041/16, N.Y. Sup., New York Co.).

  • September 26, 2018

    Insurers’ Receiver Seeks Abatement Of Cross-Claim In Breach Of Fiduciary Duty Suit

    ST. LOUIS — In a breach of fiduciary duty lawsuit, a special deputy receiver for three insolvent insurers in a Sept. 14 motion asks the Missouri federal court to abate a cross-claim because a bank failed to comply with a mandatory condition precedent (Winner Road Properties LLC v. BMO Harris Bank, N.A., No. 16-1395, E.D. Mo.).

  • September 26, 2018

    Insurer’s Receiver Offers Status Report Of Finances, Return Of Funds

    CONCORD, N.H. — In the winding down of a risk-sharing plan for a medical malpractice insurer, the insurer’s receiver on Aug. 30 submitted a monthly status report to a New Hampshire court on the insurer’s finances and the return of funds to providers that paid surcharges (In the matter of the winding down of the New Hampshire Medical Malpractice Joint Underwriting Association, No. 2015-347, N.H. Super., Merrimack Co.).

  • September 26, 2018

    Panel Finds Error In Remand Of Dispute Between Insolvent Insurer, U.S. Government

    CHICAGO — A federal court erred in remanding to a state court a dispute between the U.S. Department of Health and Human (HHS) and an insolvent insurer’s liquidator over the government’s setoff of its own debt payments by first paying down the insolvent insurer’s debt, the Seventh Circuit U.S. Court of Appeals ruled Sept. 25 (Jennifer Hammer v. U.S. Department of Health and Human Services, No. 18-2523, 7th Cir., 2018 U.S. App. LEXIS 27368).

  • September 25, 2018

    Bank Seeks Contractual Indemnification Against Insurer Over Trustee Role

    COLUMBIA, S.C. — A bank sued for its role as trustee of a reinsurance trust for an insolvent insurer on Sept. 20 responded to an insurer’s first amended complaint in a South Carolina federal court and counterclaimed for contractual indemnification (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).

  • September 21, 2018

    Magistrate Judge Dismisses Case Against Insolvent Insurer Based On Settlement

    BOISE, Idaho — Pursuant to a settlement agreement, an Idaho federal magistrate judge on Sept. 18 dismissed with prejudice a trust bank’s wrongful acts lawsuit against an insolvent insurer (Idaho Trust Bank v. BancInsure Inc., et al., No. 12-00032, D. Idaho).

  • September 21, 2018

    Judge Issues Sanctions In Favor Of Insolvent Insurer In Tortious Interference Case

    DALLAS — In a tortious interference lawsuit, an insolvent insurer was granted sanctions by a Texas federal judge on Sept. 20 against a corporate defendant and reasonable attorney fees and costs for the defendant’s failure to respond to discovery requests (Lincoln General Insurance Co. v. James Thornton Maxwell, No. 16-3198, N.D. Texas, 2018 U.S. Dist. LEXIS 160740).