Mealey's Insurance Insolvency
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July 16, 2018
Federal Judge Closes Suit Between Reinsurer, Insolvent Insurer Pending Arbitration
ATLANTA — In a reinsurance agreement dispute between a reinsurer and an insolvent insurer, a Georgia federal judge on July 3 administratively closed the case pending arbitration proceedings (Gramercy Insurance Co. v. Contractor’s Bonding Ltd., No. 18-00304, N.D. Ga.).
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July 13, 2018
New Jersey Man Sues Insurance Guaranty Association For Injuries
PATERSON, N.J. — A New Jersey man sued the state’s insurance guaranty association in a New Jersey court on July 11 for personal injuries sustained when he was struck as a pedestrian by a vehicle (Arison Rodriguez v. New Jersey Property-Liability Insurance Guaranty Association, et al., No. PAS-L-002309-19, N.J. Super., Passaic Co.).
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July 6, 2018
Florida Majority Dismisses Appeal Of Hurricane Wilma Appraisal Dispute
TALLAHASSEE, Fla. — Finding that jurisdiction was “improvidently granted,” a majority of the Florida Supreme Court on July 5 discharged jurisdiction and dismissed an insured’s appeal of a lower court’s finding that his post-appraisal submission of increased costs with a state insurance guaranty association in a Hurricane Wilma coverage dispute is not a legally sufficient basis to reopen the appraisal or conduct a new appraisal (Orlando Noa v. Florida Insurance Guaranty Association, No. SC17-738, Fla. Sup., 2018 Fla. LEXIS 1375).
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July 5, 2018
Judge Won’t Reconsider Remand Of Liquidation Action Featuring ACA Insurer
CHICAGO — A liquidation procedure involving a Patient Protection and Affordable Care Act (ACA) nonprofit health insurer is exactly the type of proceeding where Congress defers to states, a federal judge in Illinois held July 2 in once again finding that the case should be remanded (Melissa Dowling v. United States Department of Health and Human Services, No. 17-494, N.D. Ill., 2018 U.S. Dist. LEXIS 110554).
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July 3, 2018
Judge Issues Protective Order In Insurer’s Liquidator’s Breach Of Contract Suit
NEW YORK — A New York federal judge issued a stipulated protective order June 20 regarding confidential information in a dispute over reinsurance proceeds allegedly owed to an insolvent insurer (Roger A. Sevigny v. Trygvesta Forsikring A/S, Trygvesta Forsikring A/S v. Cerberus Holding Company LLC, No. 16-04874, S.D. N.Y.).
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July 3, 2018
Magistrate Judge: Insured, Insolvent Insurer Settle Silica Coverage Dispute
PHILADELPHIA — An insured and an insolvent insurer settled a breach of contract coverage dispute over underlying personal injury cases involving exposure to silica dust, according to a Pennsylvania federal magistrate judge’s June 25 order (Empire Abrasive Equipment Company LP v. Acceptance Insurance Co., No. 16-6331, E.D. Pa.).
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June 26, 2018
Panel Denies Attorney Fees Against Insurance Guaranty Association
LAKELAND, Fla. — A Florida appeals panel on June 22 affirmed the denial of attorney fees to insureds against the state’s insurance guaranty association in a breach of contract lawsuit (Erick Szrajer, et al. v. Florida Insurance Guaranty Association Inc., No. 2D17-1967, Fla. App., 2nd Dist., 2018 Fla. App. LEXIS 8882).
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June 26, 2018
Judge Denies Certificate Of Innocence In Criminal Case Over Insurer’s Liquidation
NEW ORLEANS — In a criminal action over an auditor’s role in the liquidation of an insolvent insurer, a Louisiana federal judge on June 21 denied a defendant’s motion for a certificate of innocence for his conviction for money laundering (United States v. Michael H. O’Keefe Sr., No. 95-106, E.D. La., 2018 U.S. Dist. LEXIS 103893).
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June 20, 2018
Judge Approves $11.3M For Claims In Liquidation Of Reliance Insurance
HARRISBURG, Pa. — A Pennsylvania trial judge on June 6 approved the report and recommendation of a total allowed amount of $11.3 million for 246 notices of determination (NODs) in the liquidation of Reliance Insurance Co. (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).
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June 20, 2018
New Jersey High Court Grants Insurer Leave To Appeal PIP Benefits Ruling
TRENTON, N.J. — The New Jersey Supreme Court on June 15 granted an auto insurer leave to appeal a ruling finding the insurer liable for personal injury protection (PIP) benefits for an unnamed additional insured under terms of a voided insurance contract (Tyrone S. Henry Sr., et al. v. Santosh S. Bhowmik, et al., No. N/A, N.J. Sup., 2018 N.J. LEXIS 795).
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June 19, 2018
High Court Denies Review Of Defamation Suit By Insolvent Insurer’s Former Employee
WASHINGTON, D.C. — The U.S. Supreme Court on May 29 denied a petition by a former employee of an insolvent insurer asking whether, in defamation suits, “a court must distinguish between false and defamatory statements of ‘fact’ and false and defamatory statement[s] 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.).
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June 19, 2018
Oklahoma Judge Issues Notice Of Hearing On Claims In Insurer’s Liquidation
OKLAHOMA CITY — In the liquidation of Driver’s Insurance Co., an Oklahoma judge on June 4 issued an amended notice of hearing for June 28 on the receiver’s eighth report on claims evaluation and request for confirmation of receiver’s recommendation (Oklahoma, ex rel., John D. Doak v. Driver’s Insurance Co., No. CJ-2013-694, Okla. Dist., Oklahoma Co.).
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June 19, 2018
Insurer’s Receiver Says It Has Distributed Checks, Started Closing Estate
TALLAHASSEE, Fla. — The receiver for the liquidation of Seminole Casualty Insurance Co. notified a Florida court on May 21 that it has distributed $979,588.47 in checks to claimants and that it is in the process of closing the insurer’s estate (In re: The receivership of Seminole Casualty Insurance Co., No. 2011-CA-000649, Fla. Cir., Leon Co.).
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June 19, 2018
New York Justice Approves Adjudication Procedure In Insurer’s Liquidation
JAMAICA, N.Y. — A New York justice on May 16 approved a liquidator’s adjudication procedure as to objections of denied claims and the appointment of a referee in the liquidation of Fiduciary Insurance Company of America (In the matter of the liquidation of Fiduciary Insurance Company of America, No. 703264/2017, N.Y. Sup., Queens Co.).
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June 19, 2018
Man Files Personal Injury Suit Against New Jersey Insurance Guaranty Association
NEWARK, N.J. — A New Jersey man sued the state’s insurance guaranty association and others on June 8 in a New Jersey trial court for personal injuries sustained from a car crash (Steve Eugene v. Taylor E. Legates, et al., No. ESX-L-004020, N.J. Super., Essex Co.).
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June 18, 2018
Alabama High Court Partly Reverses Ruling In Broker Liability Dispute
MONTGOMERY, Ala. — The Alabama Supreme Court on June 15 partly reversed a lower court’s ruling in favor of a brokerage firm in a negligence and wantonness lawsuit brought by insureds (Jimmy Larry Beddingfield et al. v. Mullins Insurance Company, et al., No. 1170143, Ala. Sup., 2018 Ala. LEXIS 60).
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June 15, 2018
Panel: Court Must Decide Jurisdiction In Insolvent Insurer’s Indemnity Suit
HOUSTON — A trial court must decide its subject matter jurisdiction before addressing whether indemnitees breached an indemnity agreement with an insolvent insurer, a Texas appeals panel ruled June 14, vacating the lower court’s ruling (Ullico Casualty Co., et al. v. Pelco Construction Company Inc., et al., No. 01-17-00034-CV, Texas App., 1st Dist., 2018 Tex. App. LEXIS 4345).
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June 15, 2018
Appeals Court Says Insurers Can’t Recover ACA Risk-Corridor Payments
WASHINGTON, D.C. — Health insurers may not collect billions in Patient Protection and Affordable Care Act (ACA) risk-corridor funds because Congress specifically blocked payments, a majority of the Federal Circuit U.S. Court of Appeals said June 14 (Land of Lincoln Mutual Health Insurance Co. v. United States, Moda Health Plan Inc. v. United States, Nos. 2017-1224, 2017-1994, Fed. Cir.).
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June 15, 2018
Judgment Issued In Personal Injury Suit After Insolvent Insurer’s $1M Settlement
NEW YORK — A New York justice on June 14 issued a judgment reflecting that two insureds are responsible for a $4 million judgment arising from a personal injury lawsuit after their insolvent insurer paid $1 million to the settlement of the case (Etta [Itty] Pruss v. Infiniti of Manhattan Inc., et al., No. 161240/13, N.Y. Sup., New York Co., 2018 N.Y. Misc. LEXIS 2164).
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June 13, 2018
New York Justice Orders Touchstone Health HMO Inc. Into Liquidation
WHITE PLAINS, N.Y. — A New York justice ordered Touchstone Health HMO Inc. into liquidation on May 11 and appointed the state’s superintendent of insurance as liquidator (In re Touchstone Health HMO Inc., No. 54964/2018, N.Y. Sup., Westchester Co.).