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Mealey's Insurance Insolvency

  • February 21, 2020

    Magistrate Recommends Judgment For Insurer In Premium Costs Increase Case

    DALLAS — A Texas federal magistrate judge on Feb. 18 recommended that an insurer be granted summary judgment on an insured’s declaratory relief claim over an increase in premium costs because the insured was given sufficient notice of the insurer’s assumption reinsurance agreement and another insurer’s rehabilitation plan (Don B. Chae v. American Fidelity Assurance Co., No. 19-157, N.D. Texas).

  • February 21, 2020

    Judge Approves Registry Deposit For Dispute Involving Insurer In Rehabilitation

    NEW YORK — A New York federal judge on Feb. 18 approved a request by an insurer in rehabilitation to return a deposit of $519,252.81 to the court’s registry in a case over procedures for advancement of fees and expenses under investment management agreements (IMAs) for third-party actions arising out of the insurer’s initial fraud lawsuit over the mismanagement and misuse of $320 million (In re:  Platinum-Beechwood Litigation, No. 18-6658, B Asset Manager L.P., et al. v. Senior Health Insurance Company of Pennsylvania, No. 19-4487, S.D. N.Y.).

  • February 20, 2020

    Panel Declines To Enforce $1M Settlement In Light Of Insurer’s Insolvency

    CHICAGO — In a personal injury lawsuit, an Illinois appeals panel on Feb. 18 affirmed a ruling declining to enforce a settlement agreement for $1 million under an insurance policy as a judgment against a transportation company and its employee because there is a pending liquidation proceeding against their insurer (James D. Richardson v. Night Dream, Inc., et al., No. 1-19-1351, Ill. App., 1st Dist., Div. 2, 2020 Ill. App. Unpub. LEXIS 265).

  • February 19, 2020

    Insurer In Rehabilitation, Receiver Seek Judgment In Hedge Fund Scheme Case

    NEW YORK — Various summary judgment motions, including one from a receiver of a hedge fund on the issue of agency and imputation and one from an insurer in rehabilitation concerning a fraudulent conveyance claim, were filed Feb. 14 in a New York federal court in a case over misuse and mismanagement in a hedge fund scheme (In re Platinum-Beechwood Litigation, No. 18-6658, Melanie L. Cyganowski, et al. v. Beechwood Re Ltd., et al., No. 18-12018, S.D. N.Y.).

  • February 19, 2020

    9 Summary Judgment Motions Filed In Hedge Fund Liquidators’ Fraud Lawsuit

    NEW YORK — Nine summary judgment motions were filed Feb. 14 in a New York federal court lawsuit brought by the liquidators of two hedge funds over the defendants’ role in “one of the most spectacular hedge fund collapses”; the defendants generally argue in the motions that the broad allegations against them do not support claims for fraud, breach of fiduciary duty and aiding and abetting (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • February 18, 2020

    Senior Health Insurance Company Of Pennsylvania Ordered Into Rehabilitation

    HARRISBURG, Pa. — The Pennsylvania Commonwealth Court on Jan. 29 ordered Senior Health Insurance Company of Pennsylvania into rehabilitation and appointed the state’s insurance commissioner as rehabilitator (In re:  Senior Health Insurance Company of Pennsylvania in rehabilitation, No. 1 SHP 2020, Pa. Cmwlth.).

  • February 13, 2020

    Court Approves $8.12M Settlement Over Claims In Insurer’s Liquidation

    AUSTIN, Texas — A Texas court on Feb. 10 approved a $8.12 million settlement providing a three-way resolution of claims asserted by a special deputy receiver (SDR) for Capson Physicians Insurance Co. (CPIC), affiliates of CPIC and a fronting program’s insurer (The State of Texas v. Capson Physicians Insurance Co., No. D-1-GN-19-000723, Texas Dist., Travis Co., 250th Jud.).

  • February 12, 2020

    Judge Issues Judgment That CIGA Has No Duty To Repay For Medicare Payments

    LOS ANGELES — A California federal judge on Feb. 11 issued a judgment accepting the Ninth Circuit U.S. Court of Appeals’ finding that California Insurance Guarantee Association (CIGA) has no duty to reimburse the Centers for Medicare and Medicaid Services (CMS) for conditional payments made on behalf of insureds under workers’ compensation plans that become insolvent because CIGA is not a primary plan under the Medicare Act’s secondary payer provisions (California Insurance Guarantee Association v. Alex Azar II, et al., No. 15-1113, C.D. Calif.).

  • February 12, 2020

    Parties:  Error In Denial Of Qualified Immunity Defense To Freedom Of Expression Claim

    SAN JUAN, Puerto Rico — Puerto Rico’s insurance commissioner and an auxiliary rehabilitator argue in a Feb. 7 motion that a Puerto Rico federal judge erred in refusing to dismiss a freedom of expression claim filed by an insolvent insurer’s former employee because denial of the insurance commissioner and rehabilitator’s qualified immunity defense “is a manifest error of law” (Iván Colón Pérez, et al. v. Javier Rivera Ríos, et al., No. 19-1775, D. Puerto Rico).

  • February 12, 2020

    Interested Party Objects To Insolvent Insurer’s Subpoena Of Bank Accounts

    WEST PALM BEACH, Fla. — In a Florida bankruptcy proceeding, an interested party on Feb. 7 objected to a subpoena of bank accounts belonging to the party because the information sought relates only to an insolvent insurer’s fraudulent transfer claims that had been dismissed (In re:  British American Insurance Company Ltd., Chapter 15, Nos. 09-31881 and 09-35888, British American Insurance Company Ltd. v. Robert Fullerton, et al., No. 11-03118, S.D. Fla. Bkcy.).

  • February 10, 2020

    Liquidator:  $150M Hurricane Dispute Against Reinsurers Must Start In Liquidation Court

    SAN JUAN, Puerto Rico — A liquidator for an insolvent insurer argues in a Feb. 6 omnibus reply brief to reinsurers that a Puerto Rico federal judge should alter a decision sending a $150 million hurricane loss case to arbitration because the dispute over assets owed under reinsurance agreements must begin in the liquidation court (Integrand Assurance Co. v. Everest Reinsurance Co., et al., No. 19-01111, D. Puerto Rico).

  • February 10, 2020

    Virgin Islands Insurance Commissioner Says $1.44M Held For Insolvent Insurer

    ST. THOMAS, Virgin Islands — A Virgin Islands insurance commissioner on Feb. 10 updated a Virgin Islands federal court, telling the court that $1.44 million exists in a fund for an insolvent insurer and that no new payments have been made to policyholders (In the matter of Phoenix Fire and Marine Insurance Company Ltd., No. 1991-271, D. Virgin Islands).

  • February 10, 2020

    Insurer’s Liquidator Dismisses Complaint, Seeks Dismissal Of Insured’s Counterclaim

    SAN JUAN, Puerto Rico — The liquidator of an insolvent insurer on Feb. 6 voluntarily dismissed his complaint against an insured for fraud and asked a Puerto Rico federal judge dismiss an insured’s counterclaim for failure to state a claim in the dispute (Integrand Assurance Co. v. Puma Energy Caribe, LLC, No. 19-1195, D. Puerto Rico).

  • February 07, 2020

    Excess Insurers Must Bear Cost Of Insurer’s Insolvency, Missouri Federal Judge Says

    SPRINGFIELD, Mo. — A Missouri federal judge on Jan. 31 denied a motion for summary judgment filed by two excess insurers in an asbestos coverage dispute after determining that the excess insurers must bear the cost of an underlying insurer’s insolvency because the excess policies at issue do not explicitly exclude the “drop down” of coverage (O’Reilly Auto Enterprises LLC v. United States Fire Insurance Co., et al., No. 17-3007, W.D. Mo., 2020 U.S. Dist. LEXIS 18422).

  • February 05, 2020

    Parties Request Stay Against English Reinsurer Based On Bankruptcy Court Order

    BOSTON — A reinsurer and an English reinsurer ask a Massachusetts federal court in a Jan. 28 motion for a stay of counterclaims against the English reinsurer concerning allocation and billing of environmental claims because a bankruptcy court order was issued against the English reinsurer (Certain London Market Company Reinsurers v. Lamorak Insurance Co., No. 18-10534, D. Mass.).

  • February 04, 2020

    Federal Judge Dismisses 2 Defendants From Hedge Fund Liquidators’ Fraud Case

    NEW YORK — A New York federal judge on Jan. 31 dismissed two defendants from allegations brought by the liquidators of two hedge funds regarding the defendants’ role “with one of the most spectacular hedge fund collapses” (In re Platinum-Beechwood Litigation, No. 18-6658, Martin Trott, et al. v. Platinum Management [NY] LLC, et al., No. 18-10936, S.D. N.Y.).

  • February 04, 2020

    Judge Dismisses Due Process, 1st Amendment Claims Of Insolvent Insurer, Employees

    SAN JUAN, Puerto Rico — A federal judge in Puerto Rico on Jan. 30 dismissed all due process and First Amendment claims except one for freedom of expression filed by an insolvent insurer and its former employees against Puerto Rico’s insurance commissioner and an auxiliary rehabilitator (Iván Colón Pérez, et al. v. Javier Rivera Ríos, et al., No. 19-1775, D. Puerto Rico).

  • January 31, 2020

    Insured Not Entitled To Attorney Fees Against FIGA, Florida Panel Says In Reversal

    WEST PALM BEACH, Fla. — A Florida appeals panel on Jan. 29 held that an insured was not entitled to recover attorney fees under a Florida statute because the Florida Insurance Guaranty Association Inc. (FIGA) never denied his claim by affirmative action before he filed a lawsuit  (Florida Insurance Guaranty Association v. Adam Rubin, No. 4D18-3147, Fla. App., 4th Dist.).

  • January 31, 2020

    Parties Inform Judge Of Settlement In $1.1M Reinsurance Lawsuit

    SCRANTON, Pa. — In a breach of contract dispute, parties tell a Pennsylvania federal judge in a Jan. 20 stipulation of dismissal that they reached a settlement of the $1.1 million dispute that arises out of several insurance, reinsurance and indemnity agreements for a U.S. Custom Bonds program (Aegis Security Insurance Co. v. Kingsway Financial Services Inc., No. 16-1555, M.D. Pa.).

  • January 30, 2020

    Runoff Insurer Dismisses Appeal To 2nd Circuit Of Orders On Fee Advancements

    NEW YORK — A runoff insurer on Jan. 22 dismissed its appeal to the Second Circuit U.S. Court of Appeals regarding four orders over the advancement of fees and expenses under investment management agreements (IMAs) for third-party actions arising out of the runoff insurer’s initial fraud lawsuit over the mismanagement and misuse of $320 million (B Asset Manager L.P., et al. v. Senior Health Insurance Company of Pennsylvania, No. 19-4239, 2nd Cir.).