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Mealey's Insurance Insolvency

  • June 27, 2025

    California Judge Denies Insured’s Motion For Summary Adjudication As To UCL Claim

    LOS ANGELES — A California judge granted an insured’s motion for summary adjudication as to his declaratory relief claim in a lawsuit alleging that the California Fair Plan Association (CFP) issued property insurance policies with fire coverage that is unlawfully restrictive as to smoke damage claims but denied the insured’s motion as to his unfair competition law (UCL) claim, finding that he failed to satisfy his burden to establish standing to bring the UCL claim.

  • June 26, 2025

    U.S. High Court Denies Cert In Pennsylvania Underwriting Association Dispute

    WASHINGTON, D.C. — The U.S. Supreme Court denied a petition for a writ of certiorari filed by the state-created Pennsylvania Professional Liability Joint Underwriting Association (JUA), which provides insurance to health care providers, including those previously insured by insurers in liquidation, seeking review of a Third Circuit U.S. Court of Appeals holding that the JUA does not have constitutional rights to challenge the constitutionality of Pennsylvania laws due to JUA’s nature as a public entity instead of a private one.

  • June 24, 2025

    COMMENTARY: The Receiver Of An Insolvent Insurer “Stands in the Shoes” Of The Ceding Insurer When Pursuing Recoveries Against Reinsurers

    By Debra J. Hall and Robert M. Hall

  • June 19, 2025

    Examining Jurisdiction Sua Sponte, Judge Tosses Water Damage Coverage Dispute

    NEW ORLEANS — In a subject matter jurisdiction sua sponte review, a Louisiana federal judge dismissed a water damage coverage dispute between homeowners and a roofing company, finding that “this case must be dismissed in its entirety” due to a previous dismissal order for lack of subject matter jurisdiction upon a now-insolvent insurer’s dismissal from the suit.

  • June 18, 2025

    N.M. Panel: Policy Term ‘For A Security Breach’ Is Ambiguous; Coverage Triggered

    ALBUQUERQUE, N.M. — A New Mexico appeals court affirmed a lower court’s summary judgment ruling that a cyber insurance policy covered an underlying third-party claim seeking payment for invoices that a now insolvent health insurer mistakenly wired to a fraudulent bank account, finding that the policy term “for a security breach” is ambiguous and must be construed in favor of the insured and the “loss of money” policy exclusions do not apply.

  • June 16, 2025

    Florida Panel Reverses Judgment For Homeowner In Row Over Fire Damage Coverage

    DAYTONA BEACH, Fla. — A Florida appellate court on June 13 reversed and remanded a lower court’s ruling granting summary judgment to a homeowner in her dispute with the Florida Insurance Guaranty Association (FIGA) over coverage for fire damage, finding that material issues of fact remain regarding whether the homeowner’s husband, another insured under the policy, violated a policy provision regarding fraud.

  • June 13, 2025

    Federal Judge Rules On 8 Motions In Coverage Row Involving Insolvent Insurer

    OMAHA, Neb. — A Nebraska federal judge ruled that adherence to New York law precludes a reinsurer’s breach of warranty defense in National Indemnity Co.’s (NICO) suit to enforce its reinsurers’ obligations for incurred liabilities related to asbestos exposure; the judge also resolved seven additional motions pertaining to claims for novation and various coverage disputes, among others.

  • June 13, 2025

    Split Louisiana Panel Reverses Judgment For Insurer In Asbestos Liability Dispute

    NEW ORLEANS — A split Louisiana appellate court reversed and remanded a lower court’s ruling granting summary judgment to an insurer and to the Louisiana Insurance Guaranty Association (LIGA) but denying a motion for partial summary judgment filed by family members in a dispute over their deceased relative’s death purportedly from asbestos exposure, finding that issues of fact remain regarding the failure of the insurer and LIGA to show the applicability of a certain policy exclusion to bar coverage.

  • June 12, 2025

    Judge Grants Motion To Close Receivership In Dispute With Insurer In Liquidation

    LOS ANGELES — A California state judge issued a minute order granting a motion filed by a rehabilitation facility’s receiver to approve a final accounting and close the facility’s receivership in a suit against the facility and related parties by a now-insolvent insurer for the facility’s alleged default on its debt to the insurer, finding the receiver’s requests “reasonable.”

  • June 12, 2025

    Receiver Of Liquidated Reinsurer Seeks Settlement With Long-Serving TPA

    WILMINGTON, Del. — The receiver for the liquidation of life and health reinsurer Scottish Re (U.S.) Inc. (SRUS) asked the Delaware Chancery Court to approve a settlement resolving a dispute with its third-party administrator (TPA), which had sought to terminate its service agreement with SRUS.

  • June 10, 2025

    Declaratory Judgment Suit Filed Regarding Insolvent Insurer Litigation

    TRENTON, N.J. — Excess and primary insurers filed a declaratory judgment suit in New Jersey federal court, seeking a declaration that there is no coverage in underlying litigation and arbitration proceedings involving a now-insolvent insurer due to certain policy exclusions, including an exclusion related to insolvency and receivership.

  • June 05, 2025

    Fla. Insurance Guaranty Association Files Notice Of Settlement In Water Damage Row

    FORT LAUDERDALE, Fla. — The Florida Insurance Guaranty Association (FIGA) filed a notice of settlement in a Florida state court, asking the court to strike pending matters in a water damage dispute FIGA says it settled with a homeowner who sued it as the purported statutory guarantor for his now-insolvent homeowners insurer, United Property & Casualty Insurance Co.

  • June 05, 2025

    Life Insurance Premiums Not Debt In Rehabilitation Row, Connecticut Judge Says

    WATERBURY, Conn. — Following oral arguments, a Connecticut judge clarified the interpretation of debt under the Connecticut Insurers Rehabilitation and Liquidation Act (CIRLA), opining that the argument advanced by three asset managers — that premiums owed on their life insurance policies issued by PHL Variable Insurance Co., currently in rehabilitation, constitutes debt — conflicts with binding precedent established by a long-standing ruling.

  • June 04, 2025

    Judgment Amended To Add Over $10M In Prejudgment Interest In Insurers’ ACA Dispute

    WASHINGTON, D.C. — A federal judge issued an order granting objecting members of nondispute subclasses’ motion to amend a judgment to include prejudgment interest in a risk-corridor payment class action dispute under the Patient Protection and Affordable Care Act (ACA), finding that the equitable award should be based upon the common fund escrow account rate.

  • June 03, 2025

    Utah Regulator’s Rehab Petition Is Dismissed Without Prejudice

    SALT LAKE CITY — A lawsuit in which Utah Insurance Commissioner Jonathan T. Pike sought to have Sentinel Security Life Insurance Co., Haymarket Insurance Co. and Jazz Reinsurance Co. placed into rehabilitation has been dismissed without prejudice, text-only entries in the Utah state court docket show.

  • June 03, 2025

    Court Issues Notice Requiring Attendance At Life Policy Payout Settlement Session

    CINCINNATI — An Ohio federal court issued a docket-only entry advising parties to appear for a settlement conference in a liquidating trustee’s breach of contract suit against an insurer for failure to pay the full amount owed on a life insurance policy.

  • May 30, 2025

    Insurance Magnate Files Objections To Presentence Report In Money Laundering Case

    CHARLOTTE, N.C. — Insurance magnate Greg Lindberg filed under seal objections to a presentence investigation report after he pleaded guilty to money laundering conspiracy and conspiracy regarding his $2 billion scheme to defraud insurers and policyholders by funneling money through his extensive global network of insurance companies and was convicted on retrial in a related criminal proceeding.

  • May 27, 2025

    Contempt Motion Draws Opposition In Fraud Suit Over Security Loans

    NEW YORK — Urging a New York federal court to deny a contempt motion in litigation over fraud and racketeering allegations that involve the parent company of Bermuda reinsurer 777 Re Ltd., parties who are the focus of that motion are arguing in part that the movants “made no attempt to block the transactions — because neither violates” a preliminary injunction (PI) order.

  • May 23, 2025

    Panel Rules On Writ Application, Appeal In Hurricanes Laura, Delta Coverage Suit

    LAKE CHARLES, La. — A Louisiana appeals panel denied insureds’ application for supervisory review of a lower court’s interlocutory judgment that denied their motion for summary judgment to enforce appraisal amounts in a coverage dispute over hurricanes Laura and Delta damage and vacated the lower court’s grant of Louisiana Insurance Guaranty Association’s motion for partial summary judgment.

  • May 22, 2025

    Judge Dismisses Suit Against Roofer After Dismissal Of Insurer Destroyed Diversity

    NEW ORLEANS — A Louisiana federal judge dismissed without prejudice a suit against a roofing company in a dispute with homeowners and their insurer, finding that the court no longer has subject matter jurisdiction after the now-insolvent insurer, a citizen of Florida, was previously dismissed from the suit.

  • May 21, 2025

    Estate Sues Guaranty Association For Breach Of Contract Over Water Damage

    BARTOW, Fla.  — An estate and current owners of a property once insured by a now-insolvent homeowners insurer sued the Florida Insurance Guaranty Association (FIGA) in state court over its purported failure to adequately compensate them for water damage at the property, alleging that the guaranty association stepped “into the shoes” of the now-insolvent insurer and is in breach of the insurance contract for failing to pay the claim.

  • May 20, 2025

    Homeowners Say Appellate Jurisdiction Is Proper In Breach Of Contract Dispute

    DAYTONA BEACH, Fla. — Homeowners filed a jurisdictional statement in a Florida appellate court seeking review of a lower court order denying their motion for summary judgment regarding their third-party complaint seeking a defense by the Florida Insurance Guaranty Association (FIGA) in a breach of contract dispute with a water remediation firm.

  • May 19, 2025

    Panel Reverses Judgment For Insurer In Hurricane Damage Dispute Over Attorney Fees

    LAKELAND, Fla. — In a dispute over coverage for hurricane damage, a Florida appeals court on May 16 reversed and remanded a lower court’s ruling providing that pursuant to Florida law, the insurer was entitled to recover attorney fees and costs from the date of a settlement proposal rejected by a restoration services company, finding that the lower court erred in not applying binding Florida Supreme Court precedent.

  • May 16, 2025

    Debtors Seek Judgment In Bankruptcy Dispute Over Deferred Compensation Plans

    HOUSTON —  In the aftermath of a decision that two deferred compensation plans associated with Steward Health Care System LLC are “top hat” ones and therefore roughly $60 million in “rabbi trusts” used for them could be liquidated as part of Chapter 11 bankruptcies, the debtors urged a Texas federal bankruptcy court to rule that a putative class adversary complaint in which plan participants invoke the Employee Retirement Income Security Act “is foreclosed by the doctrines of law of the case and issue preclusion.”

  • May 14, 2025

    Delaware Chancery Court Orders Hearing On Claims Disputes In Reinsurer Liquidation

    WILMINGTON, Del. — The Delaware Chancery Court scheduled a July 21 hearing on a quartet of motions concerning reinsurance claims, the establishment of a bar date and approval of dispute procedures in relation to the liquidation of life and health reinsurer Scottish Re (U.S.) Inc. (SRUS).