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Mealey's Insurance Insolvency

  • April 23, 2019

    New Jersey Judge Orders Insolvent Insurer Into Rehabilitation

    TRENTON, N.J. — Broadway Insurance & Surety Co. Inc. was ordered into rehabilitation on March 22 by a New Jersey judge (Marlene Caride v. Broadway Insurance & Surety Company Inc., No. MER-C-86-18, N.J. Super., Mercer Co., Chanc. Div.).

  • April 23, 2019

    New York Federal Judge Dismisses Run-Off Insurer’s RICO, Fraud Claims

    NEW YORK — In an opinion setting forth reasons for a “bottom-line” order, a New York federal judge held April 22 that a run-off insurer’s claims for violation of the Racketeer Influenced and Corrupt Organizations (RICO) Act are barred under Section 107 of the Private Securities Litigation Reform Act (RICO Amendment) (Senior Health Insurance Company of Pennsylvania v. Beechwood Re Ltd., et al., No. 18-6658, S.D. N.Y., 2019 U.S. Dist. LEXIS 67952).

  • April 23, 2019

    SDR Tells Federal Court: Trust Remains Property Of Insurers’ Receivership

    ST. LOUIS — Responding to a Missouri federal judge’s second memorandum and order with instructions, the special deputy receiver (SDR) for three insolvent insurers on April 22 argues that a merchandise and services trust remains property of a receivership proceeding subject to the exclusive jurisdiction of the receivership court and that the SDR’s settlement with a beneficiary to a preneed cemetery trust did not effect that status (Winner Road Properties LLC v. BMO Harris Bank, N.A. v. Jo Ann Howard & Associates, P.C., No. 16-1395, E.D. Mo.).

  • April 22, 2019

    Panel Reverses Stay Of Negligence Action Based On Insurer’s Liquidation Order

    NEW YORK — The First Department New York Supreme Court Appellate Division on April 18 reversed a stay of a negligence case based upon a liquidation order against an insolvent risk retention group because the order did not mention the insureds (Marjorie Givens, et al. v. Kingsbridge Heights Care Center Inc., et al., No. 25103/15E, N.Y. Sup., App. Div., 1st Dept., 2019 N.Y. App. Div. LEXIS 2969).

  • April 19, 2019

    Asbestos Trust Can Pursue Full Limits Under Insolvent Insurer’s Policies, Panel Says

    NEW YORK — An asbestos personal injury settlement trust can pursue the full limits of excess policies issued by an insolvent insurer, the First Department New York Supreme Court Appellate Division affirmed April 18 because the coverage dispute is governed by the “all sums” method of allocation (In re liquidation of Midland Insurance Co.; The ASARCO Asbestos Personal Injury Settlement Trust v. Superintendent of Financial Services of the State of New York, No. 41294/86, N.Y. Sup., App. Div., 1st Dept., 2019 N.Y. App. Div. LEXIS 2952).

  • April 19, 2019

    Trial Judge Sets Claims Bar Date For Insurer’s Receivership Proceeding

    TALLAHASSEE, Fla. — A Florida trial judge on March 29 set the bar date for claims in the receivership proceeding for Physicians United Plan Inc. as the date of her order (In re:  The receivership of Physicians United Plan Inc., No. 2014-CA-1472, Fla. Cir., 2nd Jud., Leon Co.).

  • April 16, 2019

    Insurer Opposes Reinsurer’s Demand For Arbitration Of Hurricane Loss Dispute

    SAN JUAN, Puerto Rico — In its surreply, an insurer asks in an April 12 surreply that a Puerto Rico federal judge reject a reinsurer’s motion to dismiss or compel arbitration of the insurer’s lawsuit regarding hurricane losses, citing its potential rehabilitation proceedings (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).

  • April 16, 2019

    Insurer Failed To Provide Any Evidence That It Is Entitled To Reimbursement

    NEW YORK — A New York justice on April 1 granted an insured’s motion to dismiss an insurer’s declaratory judgment suit arising out of coverage for underlying asbestos claims after determining that the insurer failed to provide any evidence that it is entitled to reimbursement of defense costs paid on behalf of the insured based on the insured’s settlement with a liquidator handling the insolvency of another insurer (Zurich American Insurance Co. v. Blackman Plumbing Supply Co. Inc., No. 650059/2018, N.Y. Sup., New York Co., 2019 N.Y. Misc. LEXIS 1694).

  • April 15, 2019

    Claims Bar Date Set In Receivership Proceedings For 2 Health Insurers

    TALLAHASSEE, Fla. — A claims bar date was issued for March 15 in the receivership proceedings for Universal Health Care Insurance Co. Inc. (UHCIC) and Universal Health Care Inc. (UHC), a Florida trial judge said in an order issued the same day (In re:  The receivership of Universal Health Care Insurance Company Inc., No. 2013-CA-00358 & In re:  The receivership of Universal Health Care Inc., No. 2013-CA-00375, Fla. Cir., Leon Co., 2nd Jud.).

  • April 12, 2019

    Judge Denies Damages Cap In Breach Of Duty Case To Reinsurance Trust For Insurer

    COLUMBIA, S.C. — A South Carolina federal judge on April 11 denied a bank’s motion for partial summary judgment seeking an imposed cap on damages in a dispute over the bank’s alleged breach of duties 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., 2019 U.S. Dist. LEXIS 62308).

  • April 12, 2019

    Federal Judge Offers Reasons For Dismissal Of 2 Hedge Fund Liquidators’ Claims

    NEW YORK — A New York federal judge on April 11 issued reasons for a “bottom-line” order dismissing a first amended complaint’s claims for aiding and abetting breach of fiduciary duty and aiding and abetting fraud filed by two hedge funds’ liquidators (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y., 2019 U.S. Dist. LEXIS 62745).

  • April 11, 2019

    Pedestrian Sues New Jersey Insurance Guaranty Association For Expenses

    HACKENSACK, N.J. — A New Jersey pedestrian alleges in an April 8 complaint in a state trial court that the New Jersey Property-Liability Insurance Guaranty Association (NJPLIGA) is responsible for medical expenses incurred in an accident with a negligent unknown driver (Jonathan Frias-Rivas v. New Jersey Property-Liability Insurance Guaranty Association, et al., No. BER-L-002686-19, N.J. Super., Bergen Co.).

  • April 9, 2019

    Responses Given To Insurers’ Receiver’s Memorandum On Merchandise, Services Trust

    ST. LOUIS — A beneficiary to preneed cemetery trust argues on April 5 to a Missouri federal judge that the special deputy receiver (SDR) for three insolvent insurers does not establish that a merchandise and services trust has belonged to the estate from the beginning of the receivership proceeding while a trustee on the same day did not dispute the SDR (Winner Road Properties LLC v. BMO Harris Bank, N.A. v. Jo Ann Howard & Associates, P.C., No. 16-1395, E.D. Mo.).

  • April 8, 2019

    Judge Approves Insurer’s Liquidator’s Final Omnibus Notices Of Determinations

    HARRISBURG, Pa. — A Pennsylvania judge on April 5 approved final omnibus notices of determinations (NODs) made by Reliance Insurance Co.’s liquidator that have been issued to guaranty associations (GAs) to resolve all the claims submitted by those individual GAs (In re:  Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

  • April 8, 2019

    Judge Awards Attorney Fees To Insolvent Surety In Reimbursement Dispute

    RIVERSIDE, Calif. — A California federal judge awarded attorney fees of $117,335.50 on March 12 to an insolvent surety after previously granting summary judgment to the surety in its reimbursement dispute against contractors (Western Insurance Co. in liquidation v. Frontier Homes LLC., et al., No. 17-2181, C.D. Calif.).

  • April 4, 2019

    Funds’ Receiver Files Amended Complaint For Redress Over ‘Massive Fraudulent Scheme’

    NEW YORK — In a first amended complaint filed April 1 in a New York federal court, a receiver for funds seeks redress “for the innocent investors and creditors of her estate” damaged by unlawful and tortious acts with regard to a “massive fraudulent scheme masterminded by the now indicted and/or convicted insiders” of Platinum Partners Credit Opportunities Master Fund LP (PPCO funds) (Melanie L. Cyganowski, as equity receiver for Platinum Partners Credit Opportunities Master Fund LP, et al. v. Beechwood Re Ltd., et al., No. 18-12018, S.D. N.Y.).

  • April 2, 2019

    Hedge Funds’ Liquidators File 2nd Amended Complaint Over Fraud

    NEW YORK — Two hedge funds’ liquidators filed a second amended complaint on March 29 after a New York federal judge previously dismissed claims for aiding and abetting breach of fiduciary duties, aiding and abetting fraud and unjust enrichment as to certain defendants (Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • March 29, 2019

    Insurers’ Deputy Receiver Says Merchandise, Services Trust Belongs To Estate

    ST. LOUIS — In a breach of fiduciary duty case, the special deputy receiver (SDR) for three insolvent insurers in a March 27 brief tells a Missouri federal judge that a merchandise and services trust has belonged to the estate from the beginning of the receivership proceeding (Winner Road Properties LLC v. BMO Harris Bank, N.A. v. Jo Ann Howard & Associates, P.C., No. 16-1395, E.D. Mo.).

  • March 29, 2019

    Pedestrian Sues New Jersey Insurance Guaranty Association For Personal Injuries

    JERSEY CITY, N.J. — A pedestrian seeks judgment against the driver of a vehicle that struck her and against New Jersey’s insurance guaranty association for her personal injuries in a March 26 complaint filed in a New Jersey court (Jaqueline Steuth v. Beatrice V. Borower, et al., No. HUD-L-001217-19, N.J. Super., Hudson Co.).

  • March 28, 2019

    Rehabilitation Sought For Reinsurer By Delaware Insurance Commissioner

    WILMINGTON, Del. — The Delaware insurance commissioner on March 1 asked a state court to issue a rehabilitation order against reinsurer Scottish Re (U.S.) Inc. (SRUS) (Delaware ex rel. v. Scottish Re [U.S.] Inc., No. 2019-0175-AGB, Del. Chanc.).