Mealey's Insurance Insolvency : Mealey's : Legal News & Analysis

Mealey's Insurance Insolvency

August 09, 2022
Agreement Struck To Extend Objection Deadline On Rehab Plan For Reinsurer

WILMINGTON, Del. — The receiver for Scottish Re (U.S.) Inc. in Rehabilitation (SRUS) and dozens of interested insurers agree that extending the deadline to object to a modified plan of rehabilitation from Aug. 15 to Oct. 1 “may aid to resolve or narrow objections,” they told a Delaware state court in an Aug. 5 joint stipulation that was granted Aug. 11.
August 05, 2022
Receiver, Broker Submit Joint Status Report In Insolvent Health Plan Suit

CHICAGO — An independent fiduciary receiver and insurance broker defendants on July 28 submitted a joint status report pursuant to a federal court’s June 1 order in a breach of duty of care suit against the insurance brokers, updating the court on the status of third-party subpoenas and settlements.
August 05, 2022
Stipulation To Dismiss Agent Filed In Insurers’ $14.5M Suit Against Borrower

RALEIGH, N.C — Parties in a suit against a borrower on Aug. 4 filed a joint stipulation in North Carolina federal court agreeing to voluntarily dismiss the borrower’s agent from a suit filed by three insurers against the borrower, seeking to recover $14.5 million pursuant to a loan agreement for its alleged breach of contract in failing to make a first interest payment.
August 05, 2022
Judge Grants Summary Judgment After Stay Lifted In Suit Against Insolvent Insurer

NEW ORLEANS — A Louisiana federal judge on Aug. 3 granted summary judgment to a shipyard’s insurer in a wrongful death asbestos suit against numerous defendants, including the insurer and an insolvent insurer, finding the absence of “a triable issue” regarding the decedent’s presence at a shipyard when it was insured by the defendant insurer.
August 03, 2022
9th Circuit Won’t Rehear Prior Exclusive Jurisdiction, Abstention Disputes

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals on Aug. 1 denied a July 1 petition for panel rehearing and rehearing en banc regarding a ruling that affirmed dismissal under the prior exclusive jurisdiction rule of two suits involving the same insurance conservatorship.
August 03, 2022
Investment Manager Files Exhibits Supporting Stay Of Insurance Policy Sale

FORT LAUDERDALE, Fla. — An investment manager for a trust on Aug. 1 submitted notice with a Florida federal court of filing supplemental exhibits in support of its expedited motion to stay a trustee’s sale of policies terminating the trust in which the manager owns a “fractional” interest, pending appeal to the 11th Circuit Court of Appeals of the sale order of insolvent insurance policies.
August 01, 2022
Justice Disallows Suits Of Class 2 Claimants In New York Insurer’s Liquidation

NEW YORK — A New York justice on July 15 issued an order granting a liquidator’s application to disallow the claims of class two claimants for return of title insurance premiums from an insurer in liquidation based upon New York Liquidation Bureau counsel’s affirmation that claims for return of title insurance premiums are not authorized under New York law.
August 01, 2022
Del. High Court Tosses Appeal In Insurer’s Receivership As Lacking Jurisdiction

WILMINGTON, Del. — The Delaware Supreme Court on July 28 dismissed an appeal filed by the founder of an insurer in liquidation who objected to a receiver’s claim determinations in Delaware Chancery Court, finding that the receiver’s claim determinations are not final appealable orders and the founder failed to comply with Supreme Court filing deadlines when appealing the “apparent interlocutory order.”
July 27, 2022
Judge Excuses Status Conference Attendance In Suit Against Insolvent Insurer

AKRON, Ohio — In a July 25 docket entry, an Ohio federal judge issued an order granting two plaintiffs’ motions to excuse their appearance at a July 29 case management conference in a class action filed against Liberty HealthShare Inc., its CEOs and directors by health insurance plan members seeking a declaration that the health plans “were and are illegal contracts” and a ruling that the CEOs or directors were personally liable after Liberty was deemed an insolvent insurer under Virginia Code Annotated Section 38.2-215.
July 27, 2022
September Sentencing Set After Plea Deal Over Scheme That Led To Rehabilitation

GREENSBORO, N.C. — The former manager of a roughly $34 million reinsurance portfolio pleaded guilty on May 5 to a wire fraud charge in an alleged scheme that resulted in an insurer being placed in rehabilitation; according to the case docket in North Carolina federal court, he is scheduled to be sentenced Sept. 12.
July 27, 2022
Federal Judge Issues Latest Dismissal Order In Asbestos Liability Suit

NEW ORLEANS — A Louisiana federal judge on July 22 issued an order granting a joint motion to dismiss Liberty Mutual Insurance Co., an alleged insurer of a defendant in an asbestos liability suit and the latest party to be dismissed after the stay of insolvency of another insurer was lifted.
July 26, 2022
Judge Grants Motion To Respond In Asbestos Suit Against Insurer, Manufacturer

NEW ORLEANS — After plaintiffs in an asbestos lung cancer suit moved to respond to an asbestos product manufacturer’s motion in limine and motion to exclude alleged “flawed data” in a suit against insolvent insurers, companies they insured and other related defendants, asserting that the manufacturer’s purported motion to exclude “only a portion of a written document” violates the Federal Rules of Evidence, a Louisiana federal judge on July 22 granted the plaintiffs’ motion.
July 20, 2022
Federal Circuit Finds Government Responsible For Insurer’s Annuity ‘Shortfall’

WASHINGTON, D.C. — The Federal Circuit U.S. Court of Appeals on July 15 reversed and remanded a U.S. Court of Federal Claims decision for the U.S. government in a woman’s breach of settlement suit against it, asserting that pursuant to a medical malpractice settlement agreement, the government was obligated to ensure full payment of annuity payments when reduced by the government’s insurer due to financial difficulties, finding that the “agreement’s terms are unambiguously mandatory” because “the Government promised to provide sum certain that would be paid pursuant to a monthly timetable.”
July 19, 2022
Trustee Issues Status Report Regarding Wind-Down And Sale Of Insurance Policies

FORT LAUDERDALE, Fla. — A trustee of the Mutual Benefits Keep Policy Trust on July 15 submitted a status report with a Florida federal court regarding the court’s wind-down order approving the sale of policies related to terminating the trust, providing the court with information about the trustee’s notice of filing regarding bids on the insolvent policies to be sold at auction in two months.
July 19, 2022
Judge Grants Receiver’s Voluntary Dismissal Motion In Insolvent Health Plan Suit

CHICAGO — In a single minute entry, an Illinois federal judge on July 18 granted an independent fiduciary receiver’s voluntary dismissal motion pursuant to settlement against one broker defendant and advised that the receiver’s separate motion for default judgment against another broker defendant will be considered unopposed if there is no response to the motion.
July 18, 2022
Judge Grants 1 Defendant Release From Prison In Alleged Bribery Scheme Suit

STATESVILLE, N.C. — After the Fourth Circuit U.S. Court of Appeals vacated convictions in an alleged $2 million bribery scheme and remanded the case for a new trial, a North Carolina federal judge on July 14 granted a multinational insurance and reinsurance management company founder’s motion for release from prison pending further proceedings.
July 18, 2022
Bankruptcy Judge Grants Emergency Hearing To Owner Of Insolvent Insurers

NEW YORK — A New York federal bankruptcy judge on July 14 issued an order granting shortened notice and an emergency hearing for relief from an automatic stay to an owner of insolvent insurers and his related companies seeking to stay enforcement of a judgment entered by another court in an underlying breach of contract lawsuit filed against them.
July 15, 2022
Louisiana Federal Judge Grants Stay In Hurricane Suit Against Insolvent Insurer

NEW ORLEANS — After an insolvent homeowners insurer requested a stay pursuant to Louisiana law in a coverage dispute filed by a homeowner against the insurer, a Louisiana federal judge on July 13 granted the motion in accordance with Louisiana law providing for a six-month stay in all proceedings involving insolvent insurers, finding that though the insurer says the motion is opposed, the homeowner filed no opposition.
July 15, 2022
SEC Files Status Report With Court In Fraud Suit Involving Insolvent Insurers

NEW YORK — The Securities and Exchange Commission on July 13 filed a status report in a New York federal court regarding the remaining defendant in a lawsuit alleging that two individuals “perpetrated multiple schemes to defraud their advisory clients, which were insurance companies and reinsurance trusts.”
July 14, 2022
With Bermuda Buyout Done, Judge OKs Closure Of U.S. Chapter 15 Proceeding

NEW YORK — After the joint provisional liquidators (JPLs) for a Bermuda reinsurer and related entities collectively known as CATCo Group certified that the deadline for objections had passed and none were received, a federal bankruptcy judge in New York on July 11 granted their request to close the Chapter 15 cases.
July 14, 2022
Federal Circuit: Government’s Brief In Insurance Insolvency Suit Is Noncompliant

WASHINGTON, D.C. — The Federal Circuit U.S. Court of Appeals on July 11 issued a notice of noncompliance, giving the government five business days to submit a corrected version of its brief filed three days before urging the court to reverse a trial court’s $55 million judgment to Nevada’s receiver in lieu of loan offsets issued by U.S. Department of Health and Human Services for an insolvent insurer’s outstanding loans.
July 13, 2022
U.S. Government Asks Claims Court To Deny Insolvent Insurer’s Motion To Strike

WASHINGTON, D.C — In response to an insolvent insurer’s motion to strike portions of the U.S. government’s supplemental brief in a suit seeking a declaratory judgment that the government owes insurers millions of dollars under the Patient Protection and Affordable Care Act (ACA) risk-corridor program, the government on June 29 filed a brief with the Court of Federal Claims opposing the motion to strike and asserting that the insolvent insurer fails to “identify the legal basis for its motion.”
July 07, 2022
Receiver: Modified Rehab Plan For Reinsurer Would Raise Rates For Some YRT Business

WILMINGTON, Del. — The receiver for Scottish Re (U.S.) Inc. in Rehabilitation (SRUS) on June 30 asked a Delaware state court to approve a modified plan of rehabilitation that includes remediative rate increases (RRIs) to correct the “underpricing” of some of its Yearly Renewable Term (YRT) business that was deemed largely responsible for the reinsurer’s financial distress.
July 07, 2022
Specialty Insurer Says Insolvency Exclusion Bars Coverage Of MA Plan Insurer

CENTRAL ISLIP, N.Y. — A specialty insurer on June 30 moved for judgment on the pleadings in New York federal court in a Medicare Advantage (MA) plan insurer’s suit seeking a judgment that the specialty insurer is obligated to reimburse the plan insurer for losses in an underlying suit filed against it, contending that insolvency, managed care services and contract exclusions bar coverage.
July 01, 2022
Judge Rules On Evidence, Summary Judgment Motions In Shipyard Asbestos Case

NEW ORLEANS — A federal judge in Louisiana on June 15 issued a series of orders in which he admitted an asbestos expert, excluded evidence of collateral income sources and settlements and granted summary judgment to two defendants after finding the Longshore and Harbor Workers’ Compensation Act (LHWCA) provides the exclusive remedy for claims against a man’s employer.