Mealey's Insurance Insolvency
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August 15, 2022
New Hampshire High Court Affirms Claim Deadline In Insolvent Insurer Liquidation
CONCORD, N.H. — The New Hampshire Supreme Court on Aug. 12 affirmed a superior court’s approval of a claim amendment deadline in an insolvent insurer’s liquidation proceeding, finding that the superior court “acted within its discretion” in approving the claim amendment deadline because of the lengthy time the insurer has been in liquidation and because the insurer is not able ‘“to pay all policyholder claimants in full, and it will be unable to issue final disbursements to policyholder claimants until a claim amendment deadline is approved.”
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August 11, 2022
Insurer Sues Actuary In Federal Court Over Alleged Scheme Involving Reinsurance
GREENSBORO, N.C. — Alleging, with emphasis added, that an actuary “conspired with others to harm” North Carolina Mutual Life Insurance Co. and in so doing sent an email saying “‘please pillage in moderation,’” the company on June 30 filed a suit in North Carolina federal court asserting nine claims, including Racketeer Influenced and Corrupt Organizations Act (RICO) violations and fraud.
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August 09, 2022
Agreement Struck To Extend Objection Deadline On Rehab Plan For Reinsurer
WILMINGTON, Del. — The receiver for Scottish Re (U.S.) Inc. in Rehabilitation (SRUS) and dozens of interested insurers agree that extending the deadline to object to a modified plan of rehabilitation from Aug. 15 to Oct. 1 “may aid to resolve or narrow objections,” they told a Delaware state court in an Aug. 5 joint stipulation.
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August 05, 2022
Receiver, Broker Submit Joint Status Report In Insolvent Health Plan Suit
CHICAGO — An independent fiduciary receiver and insurance broker defendants on July 28 submitted a joint status report pursuant to a federal court’s June 1 order in a breach of duty of care suit against the insurance brokers, updating the court on the status of third-party subpoenas and settlements.
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August 05, 2022
Stipulation To Dismiss Agent Filed In Insurers’ $14.5M Suit Against Borrower
RALEIGH, N.C — Parties in a suit against a borrower on Aug. 4 filed a joint stipulation in North Carolina federal court agreeing to voluntarily dismiss the borrower’s agent from a suit filed by three insurers against the borrower, seeking to recover $14.5 million pursuant to a loan agreement for its alleged breach of contract in failing to make a first interest payment.
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August 05, 2022
Judge Grants Summary Judgment After Stay Lifted In Suit Against Insolvent Insurer
NEW ORLEANS — A Louisiana federal judge on Aug. 3 granted summary judgment to a shipyard’s insurer in a wrongful death asbestos suit against numerous defendants, including the insurer and an insolvent insurer, finding the absence of “a triable issue” regarding the decedent’s presence at a shipyard when it was insured by the defendant insurer.
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August 03, 2022
9th Circuit Won’t Rehear Prior Exclusive Jurisdiction, Abstention Disputes
SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on Aug. 1 denied a July 1 petition for panel rehearing and rehearing en banc regarding a ruling that affirmed dismissal under the prior exclusive jurisdiction rule of two suits involving the same insurance conservatorship.
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August 03, 2022
Investment Manager Files Exhibits Supporting Stay Of Insurance Policy Sale
FORT LAUDERDALE, Fla. — An investment manager for a trust on Aug. 1 submitted notice with a Florida federal court of filing supplemental exhibits in support of its expedited motion to stay a trustee’s sale of policies terminating the trust in which the manager owns a “fractional” interest, pending appeal to the 11th Circuit Court of Appeals of the sale order of insolvent insurance policies.
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August 01, 2022
Justice Disallows Suits Of Class 2 Claimants In New York Insurer’s Liquidation
NEW YORK — A New York justice on July 15 issued an order granting a liquidator’s application to disallow the claims of class two claimants for return of title insurance premiums from an insurer in liquidation based upon New York Liquidation Bureau counsel’s affirmation that claims for return of title insurance premiums are not authorized under New York law.
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August 01, 2022
Del. High Court Tosses Appeal In Insurer’s Receivership As Lacking Jurisdiction
WILMINGTON, Del. — The Delaware Supreme Court on July 28 dismissed an appeal filed by the founder of an insurer in liquidation who objected to a receiver’s claim determinations in Delaware Chancery Court, finding that the receiver’s claim determinations are not final appealable orders and the founder failed to comply with Supreme Court filing deadlines when appealing the “apparent interlocutory order.”
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July 27, 2022
Judge Excuses Status Conference Attendance In Suit Against Insolvent Insurer
AKRON, Ohio — In a July 25 docket entry, an Ohio federal judge issued an order granting two plaintiffs’ motions to excuse their appearance at a July 29 case management conference in a class action filed against Liberty HealthShare Inc., its CEOs and directors by health insurance plan members seeking a declaration that the health plans “were and are illegal contracts” and a ruling that the CEOs or directors were personally liable after Liberty was deemed an insolvent insurer under Virginia Code Annotated Section 38.2-215.
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July 27, 2022
Federal Judge Issues Latest Dismissal Order In Asbestos Liability Suit
NEW ORLEANS — A Louisiana federal judge on July 22 issued an order granting a joint motion to dismiss Liberty Mutual Insurance Co., an alleged insurer of a defendant in an asbestos liability suit and the latest party to be dismissed after the stay of insolvency of another insurer was lifted.
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July 26, 2022
Judge Grants Motion To Respond In Asbestos Suit Against Insurer, Manufacturer
NEW ORLEANS — After plaintiffs in an asbestos lung cancer suit moved to respond to an asbestos product manufacturer’s motion in limine and motion to exclude alleged “flawed data” in a suit against insolvent insurers, companies they insured and other related defendants, asserting that the manufacturer’s purported motion to exclude “only a portion of a written document” violates the Federal Rules of Evidence, a Louisiana federal judge on July 22 granted the plaintiffs’ motion.
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July 20, 2022
Federal Circuit Finds Government Responsible For Insurer’s Annuity ‘Shortfall’
WASHINGTON, D.C. — The Federal Circuit U.S. Court of Appeals on July 15 reversed and remanded a U.S. Court of Federal Claims decision for the U.S. government in a woman’s breach of settlement suit against it, asserting that pursuant to a medical malpractice settlement agreement, the government was obligated to ensure full payment of annuity payments when reduced by the government’s insurer due to financial difficulties, finding that the “agreement’s terms are unambiguously mandatory” because “the Government promised to provide sum certain that would be paid pursuant to a monthly timetable.”
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July 19, 2022
Trustee Issues Status Report Regarding Wind-Down And Sale Of Insurance Policies
FORT LAUDERDALE, Fla. — A trustee of the Mutual Benefits Keep Policy Trust on July 15 submitted a status report with a Florida federal court regarding the court’s wind-down order approving the sale of policies related to terminating the trust, providing the court with information about the trustee’s notice of filing regarding bids on the insolvent policies to be sold at auction in two months.
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July 19, 2022
Judge Grants Receiver’s Voluntary Dismissal Motion In Insolvent Health Plan Suit
CHICAGO — In a single minute entry, an Illinois federal judge on July 18 granted an independent fiduciary receiver’s voluntary dismissal motion pursuant to settlement against one broker defendant and advised that the receiver’s separate motion for default judgment against another broker defendant will be considered unopposed if there is no response to the motion.
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July 18, 2022
Judge Grants 1 Defendant Release From Prison In Alleged Bribery Scheme Suit
STATESVILLE, N.C. — After the Fourth Circuit U.S. Court of Appeals vacated convictions in an alleged $2 million bribery scheme and remanded the case for a new trial, a North Carolina federal judge on July 14 granted a multinational insurance and reinsurance management company founder’s motion for release from prison pending further proceedings.
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July 18, 2022
Bankruptcy Judge Grants Emergency Hearing To Owner Of Insolvent Insurers
NEW YORK — A New York federal bankruptcy judge on July 14 issued an order granting shortened notice and an emergency hearing for relief from an automatic stay to an owner of insolvent insurers and his related companies seeking to stay enforcement of a judgment entered by another court in an underlying breach of contract lawsuit filed against them.
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July 15, 2022
Louisiana Federal Judge Grants Stay In Hurricane Suit Against Insolvent Insurer
NEW ORLEANS — After an insolvent homeowners insurer requested a stay pursuant to Louisiana law in a coverage dispute filed by a homeowner against the insurer, a Louisiana federal judge on July 13 granted the motion in accordance with Louisiana law providing for a six-month stay in all proceedings involving insolvent insurers, finding that though the insurer says the motion is opposed, the homeowner filed no opposition.
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July 15, 2022
SEC Files Status Report With Court In Fraud Suit Involving Insolvent Insurers
NEW YORK — The Securities and Exchange Commission on July 13 filed a status report in a New York federal court regarding the remaining defendant in a lawsuit alleging that two individuals “perpetrated multiple schemes to defraud their advisory clients, which were insurance companies and reinsurance trusts.”