Mealey's Insurance Insolvency

  • December 13, 2017

    Insurer’s Liquidator Files Amended Complaint In New York Reinsurance Action

    NEW YORK — The liquidator of The Home Insurance Co. on Nov. 22 filed in a New York federal court an amended complaint against reinsurers, seeking $224,886.13 allegedly due under three facultative reinsurance certificates (Roger A. Sevigny v. Trygvesta Forsikring A/S, Trygvesta Forsikring A/S v. Cerberus Holding Company LLC., No. 16-4874, S.D. N.Y.).

  • December 13, 2017

    Magistrate Judge Approves Reinsurer’s Withdrawal Of Motions To Compel Discovery

    SCRANTON, Pa. — In a breach of contract dispute over a reinsurance agreement for a bond program, a Pennsylvania federal magistrate judge on Dec. 1 approved a bond reinsurer’s withdrawal of motions to compel discovery and for a protective order (Aegis Security Insurance Co. v. Kingsway Financial Services Inc., No. 16-1555, M.D. Pa.).

  • December 6, 2017

    Justice Asks For Parties To Show Cause On Why Not To Close Insurer’s Receivership

    NEW YORK — A New York justice on Nov. 14 ordered parties to show cause as to why an ancillary receiver’s report should not be approved closing the receivership of Villanova Insurance Co. (In re ancillary receivership of Villanova Insurance Co., No. 402669/03, N.Y. Sup., New York Co.).

  • December 6, 2017

    Insurer’s Receiver Asserts Negligence Claim Against Actuary Company, Officer

    OKLAHOMA CITY — An insolvent insurer’s receiver filed a second amended complaint on Nov. 27 in an Oklahoma federal court, asserting professional negligence against an actuary services provider and its chief executive officer for their alleged failure to properly investigate and accurately report on the financial standing and reinsurance contracts of the insurer (Oklahoma ex rel., John D. Doak v. CTK Actuarial Services Inc., No. 17-371, W.D. Okla.).

  • December 6, 2017

    Panel Affirms Summary Judgment Ruling In Favor Of Insolvent Insurer

    GRETNA, La. — Claimants to an auto accident failed to show that a driver was covered under an auto insurance policy issued by an insolvent insurer on the date of the accident, a Louisiana appeals panel ruled Nov. 15, upholding summary judgment to the insurer (Miriam Blandino, et al. v. Kendra Pierre, et al., No. 16-CA-150, La. App., 5th Cir., 2017 La. App. LEXIS 2097).

  • December 5, 2017

    Insurer Backs Insolvent Insurer’s $42M Settlement With Mutual Insured

    CONCORD, N.H. — After The Home Insurance Co.’s liquidator sought approval of a settlement with an insured for $42 million, an insurer who has a contribution claim against the insured says in a Nov. 30 response to a New Hampshire trial court that it has no objection to the settlement (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).

  • November 29, 2017

    Panel Revives Contract Claim Against Broker For Failing To Notify Of Liquidation

    ALBANY, N.Y. — An insured adequately asserted a third-party breach of contract claim against an insurance broker based on the broker’s failure to learn of an insurer’s liquidation proceeding, a New York appeals panel ruled Nov. 22, finding that a trial justice erred in dismissing this claim (Mary Jean Muncil v. Widmir Inn Restaurant Corp. v. Carter-MGM Insurance Agency LLC, et al., No. 524856, N.Y. Sup., App. Div., 3rd Dept., 2017 N.Y. App. Div. LEXIS 8276).

  • November 29, 2017

    Insolvent Insurer Asserts Defenses Against Contractual Indemnification Claim

    COLUMBIA, S.C. — An insolvent insurer argues in a Nov. 22 reply brief to the South Carolina federal court that a bank is barred from asserting its contractual indemnification counterclaim in a dispute over the bank’s role as trustee of a reinsurance trust with an insolvent insurer because the bank has no contractual right (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C.).

  • November 22, 2017

    Justice Orders Claimants To Show Cause Opposing Close Of Insurer’s Liquidation

    NEW YORK — A New York justice on Nov. 8 ordered that all persons interested in the affairs of ICM Insurance Co. should show why the insurer’s liquidation proceeding should not be closed pursuant to the request of the liquidator (In the matter of the liquidation of ICM Insurance Co., No. 452122/13, N.Y. Sup., New York Co.).

  • November 21, 2017

    Judge Denies Ruling On Insolvent Surety’s Liability On Immigration Bonds

    MINNEAPOLIS — A Minnesota federal judge on Nov. 14 refused to declare that a liquidated surety’s liability on federal immigration bonds attaches when the bonds are issued (The United States of America v. Mike Rothman, Minnesota insurance commissioner as liquidator of Minnesota Surety and Trust Co., No. 17-2064, D. Minn., 2017 U.S. Dist. LEXIS 187981).

  • November 20, 2017

    Pa. High Court Denies Review Of Ruling On $1M Claim Against Insurance Guarantor

    HARRISBURG, Pa. — The Pennsylvania Supreme Court on Nov. 16 declined to review a lower court’s vacating of a trial court finding that a $1 million default judgment claim against the state’s insurance guarantor was time-barred (James Green v. Pennsylvania Property and Casualty Insurance Guaranty Association, No. 256 WAL 2017, Pa. Sup., 2017 Pa. LEXIS 2995).

  • November 20, 2017

    Justice Orders Insurer To Show Cause As To Why It Should Not Be Liquidated

    NEW YORK — Park Insurance Co. has until Nov. 20 to show why it should not be placed in liquidation at the request of the New York superintendent of insurance, a New York justice said Oct. 19 (In the matter of the application of Park Insurance Co., No. 452877/17, N.Y. Sup., New York Co.).

  • November 20, 2017

    Panel: Statute Of Repose, Bar Date Do Not Violate Claimant’s Constitutional Rights

    RALEIGH, N.C. — The bar date and the statute of repose under North Carolina law do not violate the North Carolina or U.S. constitutions, “either facially or as applied” to a claimant filing a workers’ compensation claim with the North Carolina Insurance Guaranty Association (NCIGA), a North Carolina appeals panel ruled Nov. 7 (Thelma Bonner Booth, et al. v. Hackney Acquisition Co., et al., No. COA17-274, N.C. App., 2017 N.C. App. LEXIS 921).

  • November 14, 2017

    New York Trial Court Terminates Insurer’s Liquidation Proceeding

    NEW YORK — A New York trial court on Nov. 2 closed  the estate of Cosmopolitan Mutual Insurance Co. (In the matter of the liquidation of Cosmopolitan Mutual Insurance Co., No. 42638/80, N.Y. Sup., New York Co.).

  • November 9, 2017

    Insurer’s Liquidator Asks For Approval On Omnibus Notices Of Determination

    HARRISBURG, Pa. — An insolvent insurer’s liquidator filed an application on Nov. 1 with a Pennsylvania trial court for an order approving her recommendation on final state insurance guaranty association (GA) omnibus notices of determination (NODs) (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).

  • November 9, 2017

    Insolvent Insurers’ Receiver Seeks Panel’s Clarification On Trust Law Remedies Ruling

    ST. LOUIS — A receiver and state guaranty associations ask in an Oct. 27 reply brief that the Eighth Circuit U.S. Court of Appeals clarify that its intention was not to limit trust law remedies available to a trial court on remand in a dispute over the mishandling of funds belonging to insolvent funeral insurers (Jo Ann Howard and Associates, P.C., et al. v. J. Douglas Cassity, et al., Nos. 15-3872 & 15-3878, 8th Cir., 2017 U.S. App. LEXIS 15621).

  • November 8, 2017

    Home’s Liquidator Asks For Approval Of $9.3M Asbestos Settlement With Insured

    CONCORD, N.H. — The liquidator for The Home Insurance Co. on Nov. 3 asked a New Hampshire trial court to approve a $9.3 million settlement with an insured to resolve asbestos claims under eight insurance policies (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).

  • November 6, 2017

    Virgin Islands Federal Judge Discharges Liquidator Of Insolvent Insurer

    ST. THOMAS, Virgin Islands — A Virgin Islands federal judge on Nov. 3 discharged an insurance commissioner as liquidator of an insolvent insurer and ordered $400,000 of unclaimed funds awarded to the Division of Banking and Insurance, Office of the Lieutenant Governor, to cover administrative costs incurred during the liquidation (Osbert E. Potter, et al. v. Phoenix Fire and Marine Insurance Company Ltd., et al., No. 1991-271, D. Virgin Islands, 2017 U.S. Dist. LEXIS 182663).

  • November 3, 2017

    Insurer’s Liquidator Did Not Waive Sovereign Immunity, Panel Finds

    ATLANTA — An insolvent insurer’s liquidator did not waive sovereign immunity under the Insurers Rehabilitation and Liquidation Act as to claims for payment of administrative expenses and attorney fees, a Georgia appeals panel ruled Oct. 31 (State of Georgia, et al. v. International Indemnity Co., Nos. A17A1195 & A17A1196, Ga. App., 2017 Ga. App. LEXIS 543).

  • November 2, 2017

    Florida High Court Accepts Appeal Of Court’s Refusal To Conduct New Appraisal

    TALLAHASSEE, Fla. — The Florida Supreme Court on Oct. 20 accepted an appeal of an appellate decision finding that an insured’s 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 existing appraisal or conduct a new appraisal (Orlando Noa v. Florida Insurance Guaranty Association, No. SC17-738, Fla. Sup., 2017 Fla. LEXIS 2124).