Mealey's Insurance Insolvency
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May 21, 2018
Judge Declines To Join Insurers’ Receiver To Breach Of Fiduciary Suit
ST. LOUIS — A Missouri federal judge on May 16 denied a request to join a special deputy receiver for three insolvent insurers to a breach of fiduciary lawsuit against a trustee for its role on pre-need funeral contracts because the trustee does not state in what capacity it would like to join the receiver (Winner Road Properties LLC v. BMO Harris Bank, N.A., No. 16-1395, E.D. Mo., 2018 U.S. Dist. LEXIS 82331).
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May 11, 2018
Panel Reverses Ruling In Indemnity Case Involving Insolvent Insurer
HOUSTON — In an oil company’s dispute over indemnity for an injured worker’s claims, a Texas appeals panel found May 1 that a genuine fact issue exists on whether a lower court was negligent in providing notice of dismissal of the dispute following the oil company’s pursuit of a claim in an insurer’s liquidation (Marathon Petroleum Company LP v. Cherry Moving Company Inc., No. 14-16-00634-CV, Texas App., 14th Dist., 2018 Tex. App. LEXIS 3049).
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May 10, 2018
Federal Judge Dismisses Fraud Case Filed By Insolvent Insurer’s Former Owner
WILMINGTON, Del. — A fraud lawsuit filed by the former owner of an insolvent insurer who is serving a sentence for wire fraud and aggravated identity theft against the Delaware insurance commissioner is “frivolous and cannot be sustained,” a Delaware federal judge ruled May 8 (Jeffrey Cohen v. Trinidad Navarro, No. 17-1352, D. Del., 2018 U.S. Dist. LEXIS 77691).
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May 8, 2018
Woman Sues New Jersey Insurance Guaranty Association For Benefits
NEWARK, N.J. — A New Jersey woman on May 4 filed a personal injury lawsuit on behalf of herself and her son against the state’s insurance guaranty association for injuries sustained as pedestrians caused by an unidentified motor vehicle (Marianela Lucero v. New Jersey Property Liability Insurance Guaranty Association, et al., No. ESX-L-003210-18, N.J. Super., Essex Co.).
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May 1, 2018
Pedestrian Sues New Jersey Insurance Guaranty Association For Personal Injuries
NEWARK, N.J. — A New Jersey woman filed a personal injury lawsuit on April 26 against the state’s insurance guaranty association in a New Jersey trial court, seeking uninsured motorist bodily injury benefits (Rosa Evelia Navas v. Jeanette Valentin, et al., No. ESX-L-002996-18, N.J. Super., Essex Co.).
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April 27, 2018
Panel Upholds Insurance Scam Conviction For Former Owner Of Insolvent Insurer
RICHMOND, Va. — A Fourth Circuit U.S. Court of Appeals panel on April 25 affirmed a federal judge in Maryland’s imposition of a 37-year prison sentence for the former owner of an insolvent insurer who pleaded guilty to wire fraud, aggravated identity theft, making false statements to insurance regulators and obstruction of justice, finding that an appeal waiver in his plea bargain barred most of his objections to the sentence (United States of America v. Jeffrey Brian Cohen, No. 15-4780, 4th Cir., 2018 U.S. App. LEXIS 10437).
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April 25, 2018
Insurer’s Liquidator Seeks Approval Of Determinations For Guaranty Associations
HARRISBURG, Pa. — The liquidator for Reliance Insurance Co. on April 17 filed an application with a Pennsylvania trial court requesting approval of her recommendation on final guaranty association (GA) omnibus notices of determination (NODs) (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).
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April 25, 2018
Panel Upholds $800,000 Judgment Against Florida Insurance Guaranty Association
WEST PALM BEACH, Fla. — An $800,000 judgment against the Florida Insurance Guaranty Association Inc. (FIGA) in a hurricane coverage dispute was affirmed on March 8 by a Florida appeals panel (Florida Insurance Guaranty Association Inc. v. Environ Condominium II Association Inc., No. 4D17-353, Fla. App., 4th Dist., 2018 Fla. App. LEXIS 3473).
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April 25, 2018
Justice Seeks Objections To Receiver’s Adjudication Procedure Of Claims
NEW YORK — A New York justice on April 12 ordered parties interested in Lincoln General Insurance Co.’s ancillary receivership proceeding to show cause for any objections to an ancillary receiver’s adjudication procedure and appointment of a referee to oversee objections to denied claims (In re Lincoln General Insurance Co., No. 450003/2016, N.Y. Sup., New York Co.).
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April 24, 2018
Justice Asks For Cause Why Medical Insurer Should Not Be Placed In Liquidation
WHITE PLAINS, N.Y. — A New York trial justice ordered parties on April 9 to show cause why Touchstone Health HMO Inc. should not be placed into liquidation (In re Touchstone Health HMO Inc., No. 54964/2018, N.Y. Sup., New York Co.).
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April 24, 2018
Judge Confirms Receiver’s Denial Of Claims In Insurer’s Liquidation Proceeding
OKLAHOMA CITY — An Oklahoma judge on April 20 approved the state insurance commissioner’s recommendation denying claims in the liquidation of Pride National Insurance Co. (Oklahoma v. Pride National Insurance Co., No. CJ-2013-1448, Okla. Dist., Okla. Co.).
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April 24, 2018
Federal Judge Dismisses Personal Injury Case Between Injured Driver, Auto Insurer
SAN FRANCISCO — Noting that the parties resolved the case, a California federal judge on April 3 dismissed a coverage dispute between an injured driver and her auto insurer for personal injuries from an accident, a week after the parties wrote to him on whether an at-fault driver’s insurer was insolvent within a timeframe for the injured to qualify as an underinsured motorist (Monique Arreola v. MAPFRE Insurance Co., No. 17-05642, N.D. Calif.).
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April 18, 2018
Bank Opposes Bid To Add Civil Conspiracy Claim Over Reinsurance Handling
COLUMBIA, S.C. — A bank being sued for its role as trustee of a reinsurance trust for an insolvent insurer argues on April 16 that a South Carolina federal court should decline to allow the insolvent insurer to amend its complaint to add a civil conspiracy claim (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).
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April 17, 2018
Woman Sues New Jersey Insurance Guaranty Association For Personal Injuries
NEWARK, N.J. — A New Jersey woman filed a personal injury lawsuit April 13 in a New Jersey trial court against the state’s insurance guaranty association for damages caused when an unidentified vehicle struck her while she was crossing the street (Anita Strickland v. New Jersey Property Liability Guaranty Association, et al., No. ESX-L-002649-18, N.J. Super., Essex Co.).
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April 16, 2018
North Carolina High Court Denies Review In Workers’ Compensation Dispute
RALEIGH, N.C. — The North Carolina Supreme Court on April 5 declined to review a ruling that the bar date and the statute of repose under North Carolina law do not violate the North Carolina or U.S. constitutions, “either facially or as applied” to a claimant filing a workers’ compensation claim with the North Carolina Insurance Guaranty Association (NCIGA) (Thelma Bonner Booth, et al. v. Hackney Acquisition Co., et al., No. 402P17, N.C. Sup., 2018 N.C. LEXIS 269).
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April 16, 2018
New York Justice: Reinsurance Contracts Capped For Cedent’s Asbestos Losses
ROME, N.Y. — A New York justice on March 7 ruled that a cedent is not entitled to asbestos loss and expenses beyond the stated coverage amount set forth in reinsurance certificates issued by members of a reinsurance pool (Utica Mutual Insurance Co. v. Abeille General Insurance Co., et al., No. CA2013-002320, N.Y. Sup., Oneida Co.).
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April 13, 2018
Texas Trial Judge Orders Access Insurance Company Into Liquidation
AUSTIN, Texas — Access Insurance Co. was ordered into liquidation on March 13 by a Texas trial judge, and the Texas insurance commissioner was named liquidator (The Texas Department of Insurance v. Access Insurance Co., No. D-1-CN-18-001285, Texas Dist., Travis Co., 261st Jud.).
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April 13, 2018
Federal Judge Dismisses Insolvent Health Insurer’s Suit Against United States
LAS VEGAS — A Nevada federal judge on March 30 dismissed a defunct health insurer’s case for lack of subject matter jurisdiction because the monetary relief sought against the United States is available through the Court of Federal Claims (Barbara D. Richardson v. U.S. Department of Health and Human Services, et al., No. 17-775, D. Nev., 2018 U.S. Dist. LEXIS 54065).
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April 13, 2018
Bank Seeks Reimbursement From Insolvent Insurer For $2.5M Posted Collateral
LOS ANGELES — A bank sued the liquidator of an insolvent medical professional liability insurer on April 4 in a California federal court, seeking reimbursement under a letter of credit issued to the insurer to stay enforcement of an underlying $2.5 million medical malpractice judgment (MUFG Union Bank, N.A. v. Steven C. Taylor, No. 18-02772, C.D. Calif.).
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April 12, 2018
Panel: City Is Not Entitled To Settlement Proceeds Paid By Insurance Guaranty Fund
CHICAGO — The city of Chicago, as a self-insured workers’ compensation carrier, is barred from asserting a subrogation claim against an employee’s third-party settlement proceeds paid by the Illinois Guaranty Fund on behalf of an insolvent insurer, an Illinois appeals panel held March 28 (Darryl L. Heard v. Chicago, No. 1-17-1076, Ill. App., 1st Dist., 3rd Div., 2018 Ill. App. Unpub. LEXIS 513).