Mealey's Insurance Insolvency

  • March 16, 2018

    Pedestrian Sues New Jersey Insurance Guaranty Association For Injuries

    PATERSON, N.J. — A pedestrian seeks damages in a March 13 complaint filed in a New Jersey court from the state’s insurance guaranty association for injuries from a vehicle accident caused by the negligence of an unknown driver (Claudia Hunter v. The New Jersey Property-Liability Insurance Guaranty Association, et al., No. PAS-L-000868-18, N.J. Super., Passaic Co.).

  • March 15, 2018

    Bankruptcy Judge Approves Bid Procedures Deal Between Reinsurance Firm, Creditors

    WILMINGTON, Del. — In a Chapter 11 proceeding filed by a reinsurance firm, a Delaware bankruptcy judge on Feb. 28 approved bidding procedures between the firm, unsecured creditors and its stalker horse bidder in a planned sale of the reinsurance firm’s operating subsidiary’s stock (In re Scottish Holdings Inc., et al., No. 18-10160, D. Del. Bkcy.).

  • March 15, 2018

    Stockholders Seek Class Cert In Suit Against Bankrupt Reinsurance, Insurance Provider

    WILMINGTON, Del. — Common stockholders of a bankrupt insurance and reinsurance services company on March 2 moved for certification of their class and appointment of class representatives and counsel in a Delaware bankruptcy court lawsuit in which the company is accused of laying off employees without proper notice under the Workers’ Adjustment and Retraining Notice Act (WARN Act) (In re: Patriot National Inc., et al., Chapter 11, No. 18-10189, Michelle L. Cole, et al. v. Patriot National Inc., et al., Adv. Pro. No. 18-5, D. Del. Bkcy.).

  • March 15, 2018

    Liquidator Seeks Default Judgment On Third-Party Breach Of Contract Claim

    NEW YORK — In a New York federal court dispute over reinsurance proceeds allegedly owed to an insolvent insurer, a liquidator on Jan. 31 requested that a default judgment be entered on his third-party breach of contract claim against a holding company (Roger A. Sevigny v. Trygvesta Forsikring A/S, Trygvesta Forsikring A/S v. Cerberus Holding Company LLC, No. 16-04874, S.D. N.Y.).

  • March 15, 2018

    Doctor Seeks Stay Of Malpractice Suit Based On Insurer’s Liquidation Order

    WILMINGTON, Del. — A doctor on Feb. 20 in a Delaware trial court moved to stay a medical malpractice case against him and hospitals pursuant to a liquidation order issued against his insurer (Jocelyn Rice v. Bayhealth Medical Center Inc., et al., No. N16C-10-158, Del. Super.).

  • March 14, 2018

    Insolvent Insurer’s Former Employee Petitions U.S. High Court On Defamation Suits

    WASHINGTON, D.C. — A former employee of an insolvent insurer on Feb. 12 petitioned the U.S. Supreme Court on whether, in defamation suits, “a court must distinguish between false and defamatory statements of ‘fact’ and false and defamatory statement of ‘opinion,’ with the latter afforded protection from liability for defamation under the First Amendment” (Jamus Jacobs v. The Oath for Louisiana, et al., No. 17-1146, U.S. Sup., 2018 U.S. S. Ct. Briefs LEXIS 594).

  • March 14, 2018

    Judge Closes Case Between Insurer, Insolvent Insurer Pending Settlement Talks

    ATLANTA — A Georgia federal judge on Feb. 28 closed, rather than staying, a dispute between a workers’ compensation insurer over whether its policies insured certain staffing companies for claims also tendered to an insolvent insurer pending the parties’ ongoing settlement negotiations (Georgia Insurers Insolvency Pool v. Sussex Insurance Co., No. 16-03975, N.D. Ga.).

  • March 14, 2018

    Idaho Insurance Guaranty Association Seeks To Dismiss Bank’s Coverage Dispute

    BOISE, Idaho — The Idaho Insurance Guaranty Association (IIGA) on March 9 moved in an Idaho federal court to dismiss for lack of jurisdiction a lawsuit brought by a trust bank against its insolvent insurer (Idaho Trust Bank v. BancInsure Inc., et al., No. 12-00032, D. Idaho).

  • March 14, 2018

    Administrative Services Provider Moves To Arbitrate Dispute With Insurer’s Liquidator

    FRANKFORT, Ky. — After an earlier order denying arbitration was vacated on appeal, an administrative services provider on Feb. 26 filed a renewed motion to compel arbitration of a dispute with an insolvent insurer’s liquidator (Nancy G. Atkins v. CGI Technologies and Solutions Inc., No. 16-00037, E.D. Ky.).

  • March 14, 2018

    Pedestrian Sues New Jersey Insurance Guaranty Association For Personal Injuries

    PATERSON, N.J. — A New Jersey pedestrian injured from a hit-and-run vehicle accident alleges in a March 6 complaint filed in a New Jersey court that the state’s insurance guaranty association is responsible for her medical costs (Morghan Tisdol v. New Jersey Property Liability Insurance Guaranty Association, No. PAS-L-000768-18, N.J. Super., Passaic Co.).

  • March 13, 2018

    Panel: Arbitration Award Was Not In Violation Of Texas Insurance Guaranty Act

    DALLAS — An arbitration award against contractors was not in direct violation of the Texas Property and Casualty Insurance Guaranty Act when their insurer became impaired, a Texas appeals panel ruled Feb. 28 (The Holmes Builders at Castle Hills Ltd., et al. v. Alfred H. Gordon, et al., No. 05-16-00887, Texas App., 5th Dist., 2018 Tex. App. LEXIS 1572).

  • March 12, 2018

    Panel Reverses Judgment On Rehabilitator’s Negligence Claim Against School Board

    FRANKFORT, Ky. — An insured vs. insured exclusion bars coverage for a deputy rehabilitator’s negligence claims against a school board association, a majority of the Kentucky Court of Appeals ruled March 9; however, the majority affirmed that insurance coverage existed for identical claims against a board of trustees (Certain Underwriters at Lloyd’s, London v. Joseph N. Pope Jr., et al., No. 2016-CA-001028-MR, Ky. App., 2018 Ky. App. Unpub. LEXIS 131).

  • March 12, 2018

    Judge Allows Receiver To Amend Negligence Suit Against Reinsurance Intermediaries

    OKLAHOMA CITY — An Oklahoma federal judge on March 8 granted an insolvent insurer’s receiver’s request for leave to amend his negligence lawsuit against reinsurance intermediaries for their alleged negligence in providing reinsurance services to the insurer (State of Oklahoma, et al. v. Axiom Re LP, et al., No. 17-0484, W.D. Okla., 2018 U.S. Dist. LEXIS 38131).

  • March 9, 2018

    New York Appeals Panel: Agent’s Action Was Not Cause Of Insolvent Insurer’s Losses

    ALBANY, N.Y. — An insurance agent’s conduct was not the proximate cause of an insolvent insurer’s losses under surety bonds, the Third Department New York Supreme Court Appellate Division held March 8, affirming the dismissal of the insurer’s negligence, breach of contract and breach of fiduciary duty claims (Frontier Insurance Co. in liquidation v. Merritt & McKenzie Inc., No. 524078, N.Y. Sup., App. Div., 3rd Dept., 2018 N.Y. App. Div. LEXIS 1525).

  • February 22, 2018

    Panel Stays $5M Negligence Dispute Based On Insolvent Insurer’s Liquidation Order

    HARRISBURG, Pa. — Pursuant to a liquidation order of an insolvent insurer, the Pennsylvania Superior Court on Feb. 12 issued an automatic stay of a negligence dispute against a hospital, a radiology group and a doctor in which a jury awarded $5 million to a woman (Anita E. Tong-Summerford v. Abington Memorial Hospital and Radiology Group of Abington, P.C., et al., Nos. 3114 EDA 2016 & 3310 EDA 2016, Pa. Super., 2018 Pa. Super. LEXIS 113).

  • February 22, 2018

    Insurer Responds To Home Liquidator’s Settlement Of Lead Bodily Injury Claims

    CONCORD, N.H. — Responding to a $200,000 settlement by the liquidator of The Home Insurance Co. with an additional insured on lead bodily injury claims, another insurer in a Jan. 4 filing tells a New Hampshire trial court that it reserves its rights to contribution claims (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).

  • February 21, 2018

    Geo. V. Hamilton Settles Dispute With Insurance Association For $6 Million

    PITTSBURGH — A Pennsylvania insurance guaranty association will pay $6 million to the asbestos trust planned in the Chapter 11 case of debtor Geo. V. Hamilton Inc. to resolve a coverage dispute involving five policies issued to Hamilton by now-insolvent insurers, with a federal bankruptcy judge approving the deal Feb. 14 (In re Geo. V. Hamilton, Inc., No. 15-23704, W.D. Pa. Bkcy.).

  • February 21, 2018

    Claimants Seek Benefits From New Jersey Insurance Guaranty Association

    TRENTON, N.J. — Two claimants allege in a Feb. 16 complaint filed in the New Jersey federal court that they are entitled to benefits from the New Jersey Property Liability Guaranty Association (NJPLIGA) for injuries arising from a motor vehicle accident involving an unidentified motor vehicle owner and operator (Porfirio Torres, et al. v. New Jersey Property Liability Insurance Guaranty Association, No. 18-02290, D. N.J.).

  • February 20, 2018

    Florida Judge Orders Insurance Company Of The Americas Into Liquidation

    TALLAHASSEE, Fla. — Insurance Company of the Americas (ICA) was ordered into liquidation on Jan. 24 by a Florida trial judge, and the Florida Department of Financial Services (FDFS) was named receiver (In re:  The Receivership of Insurance Company of the Americas, No. 2018 CA 00125, Fla. Cir., Leon Co.).

  • February 20, 2018

    Magistrate Judge Lifts Stay Against Idaho Insurance Guaranty Association

    BOISE, Idaho — An Idaho federal magistrate judge on Feb. 16 lifted a stay against the Idaho Insurance Guaranty Association (IIGA) in a trust bank’s coverage dispute but declined to lift a stay and grant a preliminary injunction against an insolvent insurer (Idaho Trust Bank v. BancInsure Inc., et al., No. 12-00032, D. Idaho, 2018 U.S. Dist. LEXIS 26168).