Mealey's Insurance Insolvency
-
November 16, 2022
Federal Judge Remands, Says Insurer Citizen Of State And Was Not Improperly Joined
NEW ORLEANS — A Louisiana federal judge granted remand to a property and casualty insurance company investor who filed a breach of fiduciary duty suit against the company, which was placed into receivership after it allegedly failed to maintain sufficient reinsurance to cover losses from a hurricane, finding that remand was appropriate because the company was a citizen of Louisiana and failed to show that it was improperly joined.
-
November 15, 2022
Bankruptcy Judge Rules On Discovery Disputes Including Google Document Production
NEW YORK — A New York federal bankruptcy judge on Nov. 14 entered several orders in a proceeding involving Bermuda insurer and reinsurer PB Life and Annuity Co. Ltd. (PBLA) and other debtors, including an order setting a deadline to produce Google documents in a discovery dispute.
-
November 15, 2022
Bid To Ditch GPS Monitoring While Awaiting Retrial In Alleged Bribery Scheme Fails
STATESVILLE, N.C. — A multinational insurance and reinsurance management company founder who was released on bond awaiting a new trial in an alleged $2 million bribery scheme has to keep wearing an ankle bracelet, a North Carolina federal judge has ruled.
-
November 11, 2022
Federal Judge Grants Remand In Asbestos Coverage Suit Against Guaranty Association
COLUMBIA, S.C. — A South Carolina federal judge granted a remand motion filed by an insulation company in receivership in an asbestos coverage dispute against multiple defendants, including an insurance guaranty association, finding that because the parties are nondiverse, the suit must be remanded to state court.
-
November 11, 2022
Fiduciary Moves To Dismiss 2 Broker Defendants In Insolvent Health Plan Dispute
CHICAGO — An independent fiduciary for an insolvent health plan filed two motions to dismiss claims against two broker defendants in a breach of duty of care suit against insurance brokers in connection with the sale of a now-insolvent health plan.
-
November 11, 2022
Insurer’s Counsel Files Affidavit Seeking Discovery In $21M Wrongful Act Suit
SIOUX FALLS, S.D. — Counsel for a specialty insurer filed an affidavit in a South Dakota federal court seeking discovery and opposing a liquidator’s motion to strike asserted affirmative defenses and for partial summary judgment in the liquidator’s suit 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.
-
November 09, 2022
11th Circuit Agrees That Trustee And Investment Manager Dispute Not Arbitrable
ATLANTA — The 11th Circuit U.S. Court of Appeals affirmed a district court’s dismissal of a petition to compel arbitration filed by an investment manager in a dispute with a trustee concerning management of a trust, finding that the trustee’s contract with a company to provide software to service policies in receivership “is not a servicing agreement and thus not subject to arbitration.”
-
November 07, 2022
Insolvent Insurer’s Receiver And Liability Insurer File Stipulation Of Dismissal
NEW HAVEN, Conn. — The receiver of an insolvent insurer and the professional liability insurer of a captive manager he sued for breach of contract filed a stipulation of dismissal in a Connecticut federal court, with each party assuming its own costs.
-
November 03, 2022
Legal Service Contract In Insolvent Insurer Liquidation Approved By Florida Judge
TALLAHASSEE, Fla. — A Florida judge issued an order approving the Florida Department of Financial Services’ legal services contract it entered into with a Florida-based law firm in the liquidation of FedNat Insurance Co.
-
November 02, 2022
Fighting SEC Fraud Suit, Execs Argue That They Are Not Investment Advisers
DURHAM, N.C. — Arguing in part that the U.S. Securities and Exchange Commission didn’t sufficiently plead that they are investment advisers, two men who served as executives of various companies filed motions in North Carolina federal court seeking dismissal of all charges against them for what the SEC alleges was “a series of fraudulent and improper schemes” that defrauded clients of more than $75 million.
-
November 01, 2022
Federal Judge Grants Judgment To Guaranty Association In Asbestos Liability Suit
NEW ORLEANS — A Louisiana federal judge granted summary judgment to an insurance guaranty association as an alleged statutory obligor of a now-insolvent insurer in an asbestos coverage dispute, finding that under Louisiana law, the association is not responsible for claims filed after the “claim bar date.”
-
October 31, 2022
5-Year Sentence Set, $20.3M Forfeiture Order Sought Over Scheme Against Insurer
GREENSBORO, N.C. — Following imposition of a five-year prison sentence on the former manager of a roughly $34 million reinsurance portfolio who pleaded guilty to a wire fraud charge, the parties on Oct. 31 asked a North Carolina federal court to enter an order of forfeiture in the amount of $20,322,220.
-
October 31, 2022
Judge Deems Claims Not Covered In Asbestos Dispute Against Guaranty Association
NEW ORLEANS — A Louisiana federal judge on Oct. 28 granted an insurance guaranty association’s motion for summary judgment in an asbestos coverage suit filed against it as the alleged obligor for policies issued by a now insolvent insurer, finding that because the claims filed against the guaranty association were not filed until after the “claim bar date,” they are not covered claims.
-
October 31, 2022
Split Utah High Court Agrees That Insurance Liquidator’s Waiver Is Not Binding
SALT LAKE CITY — A split Utah Supreme Court affirmed a lower court order finding that a county failed to show a loss after a contractor insured under a surety agreement with a now insolvent insurer failed to finish the county’s municipal projects, holding that there was “no indication that the district court made findings . . . unsupported by the evidence” after it reviewed the liquidator’s release and waiver document signed by the county.
-
October 28, 2022
Trustee Asks Judge To Vacate Stay In Sale Of Asset Manager’s Insurance Policies
FORT LAUDERDALE, Fla. — A trustee responsible for trust liquidation moved a Florida federal court to vacate a stay of the sale of trust policies, asserting that because the 11th Circuit dismissed the appeal for lack of jurisdiction because the procedures order granting the sale of the trust’s insurance policies was not a final order, “the predicate for the stay no longer exists.”
-
October 27, 2022
Following Objections To Rehab Plan For Reinsurer, Receiver Proposes Schedule
WILMINGTON, Del. — After dozens of objections to his motion for approval of a proposed modified plan of rehabilitation for Scottish Re (U.S.) Inc. in Rehabilitation (SRUS) were filed in the Delaware Court of Chancery, the reinsurer’s receiver proposed a schedule under which a status conference would be held no sooner than mid-January.
-
October 26, 2022
Judge Rules On Omnibus Motion To Exclude Evidence In Asbestos Liability Suit
NEW ORLEANS — A Louisiana federal judge granted in part an omnibus motion in limine filed by defendants, including the Louisiana Insurance Guaranty Association (LIGA), in an asbestos liability suit, granting the motions to exclude the term “asbestos industry” and other financial information about the defendants, including the amount of liability coverage and certain testimony, finding that the excluded items fail to meet the court’s admissibility standards.
-
October 25, 2022
Numerous Entities Raise Objections To Rehabilitation Plan For Reinsurer
WILMINGTON, Del. — On the Oct. 24 objection deadline, numerous entities urged the Delaware Court of Chancery to reject a receiver’s motion for approval of proposed modified plan of rehabilitation for Scottish Re (U.S.) Inc. in Rehabilitation (SRUS), including a combined filing by cedents and retrocessionaires who assert that “it is likely that all creditors would fare materially better in a liquidation.”
-
October 25, 2022
Judge Denies Dismissal In Negligence Suit Against Auditor Of Insolvent Insurer
BURLINGTON, Vt. — A Vermont federal judge denied an accounting firm’s request for dismissal in a negligence suit filed against it by the liquidator of a now-insolvent insurer alleging that three years of audited financial statements failed to adequately state the financial position of the insolvent insurer, finding that none of the firm’s defenses bars the liquidator’s claims.
-
October 24, 2022
Pa. High Court Affirms Order Disallowing Funds Diversion By Insurers’ Liquidator
HARRISBURG, Pa. — The Pennsylvania Supreme Court affirmed an appellate court order denying a liquidator’s request for authorization to allocate assets from insolvent insurers’ estates to pay policyholder claims for benefits that exceed applicable statutory guaranty association limits and accrue more than 30 days after the insurance policies were terminated by the liquidations.
-
October 20, 2022
11th Circuit Tosses Appeal In Row Over Sale Of Asset Manager’s Insurance Policies
ATLANTA — The 11th Circuit U.S. Court of Appeals dismissed an investment manager’s appeal of a district court order granting the sale of policies terminating the trust in which the manager owns an interest, finding that the Circuit Court lacks jurisdiction because the challenged order is not a final decision.
-
October 18, 2022
Woman Objects To Testimony In Asbestos Liability Suit Involving Insolvent Insurer
NEW ORLEANS — A woman who filed an asbestos liability suit against a shipyard and others, including an insolvent insurer, filed a motion in limine with a federal court in Louisiana, seeking to exclude proposed expert testimony, asserting that the same expert’s testimony was excluded in another Louisiana federal court asbestos liability suit due to the plaintiff’s failure to establish the testimony as admissible hearsay.
-
October 14, 2022
Judge Approves Agency Request For Consultants In Insolvent Insurer’s Liquidation
TALLAHASSEE, Fla. — A Florida judge issued an order approving the Florida Department of Financial Services’ motion for compensation of outside consultants in anticipation of the assistance needed with its statutory duties as receiver in the liquidation of FedNat Insurance Co.
-
October 13, 2022
Magistrate Vacates Deadlines In Antitrust Coverage Row Involving Insolvent Insurer
KANSAS CITY, Kan. — A Kansas federal magistrate judge granted a liability insurer and defendant health insurer’s joint motion to vacate certain deadlines in an antitrust coverage dispute involving an insolvent excess insurer, noting the “unique procedural position of this case” where “a portion of the case” was stayed pending resolution of underlying antitrust litigation.
-
October 12, 2022
Stay Versus Dismissal Argued In Arbitration Bid In Fraud Suit Involving Reinsurance
GREENSBORO, N.C. — Agreeing to arbitration, the parties in an insolvent insurer’s suit against an actuary over an alleged scheme involving reinsurance disputed in recent filings whether the North Carolina federal court case should be stayed or dismissed.