FRANKFORT, Ky. — A federal judge in Kentucky on May 5 dismissed with prejudice an insolvent insurer’s liquidator breach of contract lawsuit against an administrative services provider after the parties voluntarily dismissed with prejudice all claims and counterclaims as settled following arbitration.
TALLAHASSEE, Fla. — A Florida judge on April 14 appointed the state’s Department of Financial Services as receiver of American Capital Assurance Corp., finding that the evidence presented in the department’s petition for a consent order provides sufficient grounds for the liquidation of the insurer.
CHICAGO — A federal judge in Illinois on May 3 dismissed with prejudice one insurance broker from an independent fiduciary’s lawsuit alleging that brokers breached their duty of care because they knew or should have known that a multiple employer welfare arrangement (MEWA) was not in compliance with its structural requirements and was not financially sound after the fiduciary indicated that it had reached a settlement with the broker.
LOUISVILLE, Ky. — A federal judge in Kentucky on May 6 signed a proposed order indicating that the plaintiff in a dispute arising from a $750,000 truck crash judgment agrees to dismiss the lawsuit with prejudice against the settling defendants and an insolvent insurer.
LOUISVILLE, Ky. — Parties involved in a dispute arising from a $750,000 truck crash judgment on May 5 filed a notice of withdrawal of a joint motion for approval of a settlement and a proposed order indicating that the plaintiff agrees to dismiss the lawsuit with prejudice against the settling defendants and an insolvent insurer.
NEW ORLEANS — A majority of the Louisiana Supreme Court on April 27 refused to review an appellant court’s ruling that reversed a lower court’s judgment in a dispute over uninsured motorist coverage involving the Texas Property and Casualty Insurance Guaranty Association (TPCIA) and two other insurers.
CHICAGO — A federal judge in Illinois on April 23 granted the acting secretary of Health and Human Services’ motion to dismiss the Illinois Insurance Guaranty Fund’s (IIGF) suit seeking an interpretation of the federal Medicare Secondary Payer (MSP) statute, finding that the IIGF has no standing to bring its lawsuit and its claims lacks subject matter jurisdiction.
CHICAGO — A federal judge in Illinois on March 31 granted in part and denied in part insurance brokers’ motion to dismiss a lawsuit alleging that they breached their duty of care because they knew or should have known that a multiple employer welfare arrangement (MEWA) was not in compliance with its structural requirements and was not financially sound.
LOUISIVILLE, KY — A federal judge in Kentucky on March 29 again extended the deadline for an insolvent insurer to respond to a joint motion for approval of a settlement between parties involved in a dispute arising from a $750,000 truck crash judgment following the parties’ contention that the settlement does not violate an injunction issued in a Nevada liquidation court and that the insolvent insurer is not entitled to recoup any settlement funds paid.
KANSAS CITY, Kan. — A federal magistrate judge in Kansas on April 7 granted Blue Cross Blue Shield of Kansas Inc.’s motion to stay a consolidated lawsuit brought by primary and excess managed care organization errors and omissions insurers disputing coverage for underlying antitrust class actions after a Pennsylvania court granted the state’s insurance commissioner’s liquidation order against the excess insurer.
NEW YORK — A federal judge in New York on March 15 granted an insurer’s motion to stay a $49,346,803 judgment entered against it in a decades-old environmental contamination coverage dispute in light of a recent liquidation order, finding that Pennsylvania is a reciprocal state under the New York’s Uniform Insurers Liquidation and, therefore, the liquidation order is enforceable and warrants staying the lawsuit.
SAN JUAN, Puerto Rico — A federal judge in Puerto Rico on Jan. 14 denied defendants’ request to reconsider a ruling that granted the Puerto Rico insurance commissioner’s motion to remand his subrogation lawsuit brought on behalf of insureds in his capacity as liquidator of an insurer, finding that the factual allegations fail to implicate the application of the Carriage of Goods by the Sea Act (COGSA) to warrant federal jurisdiction.
ST. THOMAS, Virgin Islands — The Virgin Islands insurance commissioner on April 7 reported to a Virgin Islands federal court that $1.44 million remains in a fund set up for an insolvent insurer and no new payments have been made to claimants or policyholders, mirroring what the commissioner reported one year ago.
NEW YORK — A New York justice on March 25 refused to dismiss breach of contract, tortious interference with contract and a stand-alone fraud claims, finding that there is no meaningful dispute that insurance holding companies are in default on their obligations regarding trust preferred securities and that the holders of the trust preferred securities may sue to pursue their claims seeking dividend payments.
WASHINGTON, D.C. — A dispute subclass of insolvent insurers and the U.S. government on April 13 jointly moved to divide a dispute subclass into two subclasses and requested that the U.S. Court of Federal Claims enter a $23,301,140.37 judgment in favor of the newly created subclass in the insurers’ lawsuit seeking declaratory judgment that the government owes them millions of dollars under the Patient Protection and Affordable Care Act (ACA) risk-corridor program.
ST. CROIX, Virgin Islands —A federal judge in the Virgin Islands on March 31 held that insureds were not required to have exhausted their administrative remedies against an insurer in liquidation prior to having brought their lawsuit seeking coverage for their Hurricane Maria damage.
SIOUX FALLS, S.D. — The liquidator of ReliaMax Surety Co. (RSC) on March 23 again amended his complaint seeking a declaratory judgment that coverage exists under a claims-made excess insurance policy above a directors and officers (D&O) policy with regard to a $21 million wrongful acts claim, seeking a $10 million judgment against the insurer minus credits provided for by the underlying judgment plus compensatory and punitive damages to be determined at trial.
NEWARK, N.J. —The city of Newark, its public safety director and police officers on March 27 reinforced their motion to dismiss a personal injury lawsuit in which New Jersey Property-Liability Insurance Guaranty Association (NPLIGA) filed a cross-claim seeking contribution from the other defendants for damages caused by a police car chase that led to a collision.
NEW YORK — The Second Circuit U.S. Court of Appeals on April 6 entered a four-month stay of the briefing schedule in a reinsurer’s appeal of a $35 million judgment entered in favor of an excess insurer in an asbestos coverage dispute to allow the Pennsylvania insurance commissioner time to decide how to proceed with the appeal in light of a liquidation order entered in Pennsylvania regarding the reinsurer.
SACRAMENTO, Calif. — A federal judge in California on March 31 dismissed the lawsuit of an insurer and its subsidiary alleging that the California insurance commissioner and his deputies violated their constitutional rights and acted in bad faith by filing a conservatorship against a workers’ compensation insurer that is party to a reinsurance participation agreement (RPA), finding that the doctrine of prior exclusive jurisdiction dictates dismissal and alternatively concluding that dismissal under Younger v. Harris is appropriate.