- Volume 29, Issue #8
- Panel: Insolvent Insurer Did Not Show Mortgagor Consented To Jurisdiction
MADISON, Wis. - An insolvent insurer failed to show that a mortgagor consented to personal jurisdiction by appearing in a rehabilitation proceeding, a Wisconsin appeals panel ruled Dec. 14, also finding no jurisdiction under Wisconsin's long-arm statute because there was no injury to the insurer in Wisconsin for purposes of its fraudulent inducement claim (Ambac Assurance Corp. v. Countrywide Home Loans Inc., No. 2015AP1493, Wis. App., 4th Dist., 2017 Wisc. App. LEXIS 1023).
- Insolvent Insurer Had No Duty To Reimburse Hospitals, Virginia High Court Finds
RICHMOND, Va. - Governing contractual provisions did not obligate an insolvent insurer to reimburse hospitals for legal fees and costs that they incurred in separate proceedings, the Virginia Supreme Court ruled Nov. 22 (Appalachian Regional Healthcare, et al. v. Jacqueline K. Cunningham, et al., No. 161767, Va. Sup., 2017 Va. LEXIS 167).
- Insurance Guaranty Wins $2.6M Judgment In Employment Benefits Case
BIRMINGHAM, Ala. - The Alabama Insurance Guaranty Association (AIGA) was awarded a $2.6 million judgment by an Alabama trial court on Oct. 3 against an insured who refused to reimburse AIGA for benefits paid to one of the insured's workers (Alabama Insurance Guaranty Association v. FrankCrum 1 Inc., et al., No. CV-11-902773, Ala. Cir., Jefferson Co.).
- Panel Upholds Dismissal Of Case Against New Jersey Insurance Guaranty Association
JERSEY CITY, N.J. - A New Jersey appeals panel on Dec. 15 affirmed the dismissal of a lawsuit against the state's insurance guaranty association and the state of New Jersey challenging the constitutionality of the New Jersey Property-Liability Insurance Guaranty Act (Annett Ruffin, et al. v. New Jersey Property-Liability Insurance Guaranty Association, No. A-1046-16T2, N.J. Super., App. Div., 2017 N.J. Super. Unpub. LEXIS 3097).
- 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).
- 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).
- 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.).
- 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.).
- Wisconsin Appeals Panel: No Error In Order On Insurer's Rehabilitation
MADISON, Wis. - A trial judge did not err in issuing a clarification order in the rehabilitation proceeding of an insolvent insurer with regard to how the rehabilitation applies to other courts' jurisdiction, a Wisconsin appeals panel held Dec. 14 (Sean Dilweg v. Carlisle/Picatinny Family Housing L.P., et al., No. 2016AP2169, Wis. App., Dist. 4, 2017 Wisc. App. LEXIS 1023).
- 8th Circuit Declines To Rehear Ruling On Insurer's Receiver's Trust Law Claim
ST. LOUIS - In a dispute over the mishandling of funds belonging to insolvent funeral insurers, the Eighth Circuit U.S. Court of Appeals on Dec. 15 denied a petition for rehearing by a receiver and state guaranty associations and let stand its ruling that a trust law claim in equity should have been tried to a trial judge rather than a jury (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 25436).
- Parents Say Government Breached Agreement By Not Covering Insolvent Insurer
WASHINGTON, D.C. - Parents of an injured child argue in a Nov. 17 reply brief to the Federal Circuit U.S. Court of Appeals that the U.S. government breached a settlement agreement over medical malpractice claims by failing to guarantee payment under annuities when an insurer became insolvent (Karen L. Shaw, et al. The United States, No. 17-2136, Fed. Cir.).
- 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.).
- 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.).
- Federal Bankruptcy Judge Denies Bid To Seal Sale Of Insolvent Insurer's Claims
NEW YORK - A federal bankruptcy judge in New York on Dec. 15 denied Rapid-American Corp.'s request to make details of a proposed sale of claims on defunct insurance company, Midland Insurance Co., confidential, saying it had not even tried to give reason for the secrecy (In re: Rapid-American Corp., Chapter 11, No. 13-10687, S.D. Bkcy. N.Y., 2017 Bankr. LEXIS 4266).
- Judge Approves Liquidator's Recommendation On Omnibus Notices Of Determination
HARRISBURG, Pa. - A Pennsylvania trial judge on Dec. 11 approved a liquidator's application on her recommendation of final state insurance guaranty association (GA) omnibus notices of determination (NODs) in Reliance Insurance Co.'s liquidation proceeding (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).
- Florida Court Orders Guarantee Insurance Co. Into Liquidation
TALLAHASSEE, Fla. - A Florida court on Nov. 27 ordered Guarantee Insurance Co. into liquidation and appointed the Florida Department of Financial Services (FDFS) as receiver (State of Florida, ex rel., the Department of Financial Services of the state of Florida v. Guarantee Insurance Co., No. 2017CA2421, Fla. Cir., Leon Co.).
- 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.).
- New York Justice Closes Ancillary Receivership For Lumbermen's Underwriting
NEW YORK - A New York justice on Nov. 13 closed the ancillary receivership proceeding of an insolvent Missouri insurer (In the Matter of the Ancillary Receivership of Lumbermen's Underwriting Alliance, No. 450674/16, N.Y. Sup., New York Co.).
- 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.).