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Preview: LexisNexis® Mealey's™ Insurance Insolvency Legal News

LexisNexis® Mealey's™ Insurance Insolvency Legal News



Headline Insurance Insolvency Legal News from LexisNexis®



 



Panel: Pollution Exclusion Bars Environmental Damage Claim With Insolvent Insurer
NEW YORK - A pollution exclusion precludes coverage for an environmental damage claim with an insolvent insurer, the First Department New York Supreme Court Appellate Division affirmed June 22 (In re Midland Insurance Co.; ASARCO LLC, v. The Superintendent of Financial Services of the State of New York, in her capacity as liquidator of Midland Insurance Co., No. 41294/86, N.Y. Sup., App. Div., 1st Dept., 2017 N.Y. App. Div. LEXIS 5065).



Wis. High Court Decides Jurisdiction Issue In Suit By Insurer In Rehabilitation
MADISON, Wis. - A mortgage insurer's appointment of a registered agent in a state did not subject it to general personal jurisdiction in that state, a majority of the Wisconsin Supreme Court ruled June 30, reversing an appeals court's decision in a fraudulent misrepresentation lawsuit filed by an insurer in rehabilitation over insurance coverage for mortgage loan claims (The Segregated Account of Ambac Assurance Corp. and Ambac Assurance Corp. v. Countrywide Home Loans Inc., No. 2015AP1493, Wis. Sup., 2017 Wisc. LEXIS 388).



Judge Dismisses Breach Of Contract Suit By Rehabilitator Against Mortgage Reinsurer
CHICAGO - An Illinois federal judge on July 5 dismissed a rehabilitator's lawsuit accusing a reinsurer of breaching its contract with an insolvent mortgage insurance provider by failing to disclose the benefits it derived from a captive reinsurance arrangement because the contract did not impose such a requirement (People of the state of Illinois, ex rel., Acting Director of Insurance, Jennifer Hammer v. Twin Rivers Insurance Co. f/k/a Cherokee Insurance Co., No. 16-7371, N.D. Ill., 2017 U.S. Dist. LEXIS 103833).



Panel: CIGA Has Duty To Reimburse For Workers' Comp Excess Coverage
SACRAMENTO, Calif. - The California Insurance Guarantee Association (CIGA) breached its statutory duty to reimburse a joint powers authority for excess workers' compensation coverage owed under an insolvent insurer's policy, a California appeals panel affirmed July 17 (CSAC Excess Insurance Authority v. California Insurance Guarantee Association, No. C081775, Calif. App., 3rd Dist., 2017 Cal. App. Unpub. LEXIS 4854).



Judge Dismisses Insolvent Insurer's Shareholder's Negligence, Fraud Lawsuit
WILMINGTON, Del. - A Delaware federal judge on June 23 declined to exercise supplemental jurisdiction over an insolvent insurer's shareholder's negligence and fraud lawsuit against various individuals involved in the liquidation of the insurance company (Jeffrey Cohen, et al. v. Kathleen Birrane, et al., No. 16-893, D. Del., 2017 U.S. Dist. LEXIS 97505).



Judge Declines To Allow Amendment To Add LIGA To Personal Injury Lawsuit
NEW ORLEANS - A Louisiana federal judge on July 19 refused to allow two insureds leave to amend their complaint to add Louisiana Insurance Guaranty Association (LIGA) as a defendant in substitute for an insolvent insurer in their personal injury lawsuit (Sherry Landry, et al. v. Circle K Stores Inc., et al., No. 16-15705, E.D. La., 2017 U.S. Dist. LEXIS 111906).



Failure To File Claim With Insolvent Insurer Is No Basis To Dismiss Suit, Panel Says
TROY, Mich. - A trial court incorrectly dismissed a lawsuit on the basis of an insured's failure to timely file a claim with his insolvent insurer before filing a lawsuit against a self-insured bus company over his injuries when boarding a bus, a Michigan appeals panel held July 6 (Stanley Jackson v. Suburban Mobility Authority for Regional Transportation, No. 331253, Mich. App., 2017 Mich. App. LEXIS 1088).



Insurer's Liquidator's Suit Should Be Arbitrated, Services Provider Asserts
CINCINNATI - A lawsuit filed by an insolvent insurer's liquidator against an administrative services provider over its work for the insurer should be arbitrated, the provider argues in a June 29 brief to the Sixth Circuit U.S. Court of Appeals, saying that the McCarran-Ferguson Act does not reverse-preempt the Federal Arbitration Act (FAA) (Nancy G. Atkins, liquidator of Kentucky Health Cooperative Inc. v. CGI Technologies and Solutions Inc., No. 17-5506, 6th Cir.).



Workers' Comp Insurer: Discovery Should Be Limited In Suit With Insolvent Insurer
ATLANTA - In a dispute over whether workers' compensation policies insured certain staffing companies for claims also tendered to an insolvent insurer, the workers' compensation insurer argues in a June 27 filing in Georgia federal court that its proposed case management approach should be granted because limited discovery "will suffice to uncover" the facts of the case (Georgia Insurers Insolvency Pool v. Sussex Insurance Co., No. 16-cv-03975, N.D. Ga.).



Government Says Failed ACA Insurer Should File Case In Federal Claims Court
COLUMBIA, S.C. - A failed Patient Protection and Affordable Care Act (ACA) co-operative insurer's liquidator should file his lawsuit challenging a federal loan repayment demand in the U.S. Court of Federal Claims, the government says in a July 19 motion filed in South Carolina federal court (Raymond G. Farmer v. United States of America, et al., No. 17-cv-00956, D. S.C.).



Insolvent Insurer Accuses Government Of Withholding ACA Funds
WASHINGTON, D.C. - The United States failed to make good on its promise to pay millions of dollars under the Patient Protection and Affordable Care Act (ACA) risk-corridor program, an insolvent insurer alleges in a July 6 complaint filed in the U.S. Court of Federal Claims (Nancy G. Atkins, et al. v. The United States of America, No. 17-906C, U.S. Fed. Clms.).



Panel Dismisses Insurance Guaranty Association From Asbestos Coverage Dispute
RICHMOND, Va. - The Fourth Circuit U.S. Court of Appeals on July 12 dismissed the Property & Casualty Insurance Guaranty Corp. (PCIGC) from an insured insulation company's appeal of a partial summary judgment order entered in favor of a number of solvent and insolvent insurers involved in an asbestos coverage case (General Insurance Company of America and The Walter E. Campbell Co. Inc. v. United States Fire Insurance Co., et al., No. 17-1585, 4th Cir.).



Judge Approves Reinsurer's Direct Payment To Insured In Reliance's Liquidation
HARRISBURG, Pa. - A Pennsylvania judge on July 25 approved a direct payment of reinsurance by a reinsurer to an insured in the liquidation of Reliance Insurance Co. (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).



Liquidator Applies For Direct Payment Of Reinsurance To Insured
HARRISBURG, Pa. - Reliance Insurance Co.'s liquidator on July 20 sought the approval of a Pennsylvania court for a direct payment of $269,341 in proceeds by a guarantor of a reinsurer to an insured (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).



Oklahoma Judge Approves Claims Evaluation Report In Insurer's Liquidation
OKLAHOMA CITY - An Oklahoma judge on July 14 approved a sixth report on the claims evaluation and request for confirmation of the receiver's recommendations in the liquidation of Driver's Insurance Co. (State of Oklahoma, ex rel., John D. Doak v. Driver's Insurance Co., No. CJ-2013-694, Okla. Dist., Oklahoma Co.).



Judge Approves Financial Report, Administration Costs In Liquidation Of Insurer
SAN FRANCISCO - In the liquidation proceedings of CastlePoint National Insurance Co., a California trial judge on July 18 approved and ratified a financial report and expenses of administration totaling $7.8 million concerning the insurer's period of conservation (Dave Jones v. CastlePoint National Insurance Co., No. CPF-16-515183, Calif. Super., San Francisco Co.).



Oklahoma Judge Puts SeniorSure Healthplan Into Receivership
OKLAHOMA CITY - An Oklahoma judge on June 30 ordered SeniorSure Healthplan Inc. into receivership and named the state's insurance commissioner as receiver (State of Oklahoma, ex rel. John D. Doak v. SeniorSure Healthplan Inc., No. CJ-2017-3547, Okla. Dist., Okla. Co.).



Home's Liquidator Seeks Approval Of Asbestos Settlements For $16M
CONCORD, N.H. - The liquidator for The Home Insurance Co. on June 27 asked a New Hampshire to approve two settlements totaling more than $16 million to resolve asbestos claims against insureds of seven insurance policies (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).



Insurer's Liquidator Tells New Hampshire Court To Approve $350,000 Settlement
CONCORD, N.H. - The liquidator for The Home Insurance Co. on June 16 filed motion asking a New Hampshire court to approve a $350,000 settlement agreement reached with a claimant regarding claims under 10 insurance policies (In the matter of the liquidation of The Home Insurance Co., No. 217-2003-EQ-00106, N.H. Sup., Merrimack Co.).



Montana High Court Upholds Judgment Against Insurance Guaranty Association
HELENA, Mont. - A trial judge did not err in granting summary judgment to an insured employer against the Montana Insurance Guaranty Association (MIGA) based on the exclusivity provision of the Montana Workers' Compensation Act (WCA), a majority of the Montana Supreme Court affirmed June 13 (Asurion Services LLC v. Montana Insurance Guaranty Association, No.16-0581, Mont. Sup., 2017 Mont. LEXIS 339).



Panel Reverses Judgment In Favor Of Insolvent Insurer On Personal Injury Claim
BATON ROUGE, La. - A Louisiana appeals panel on June 2 reversed a judgment entered in favor of an insolvent insurer on a personal injury claim arising out of a vehicle accident involving an insured and his father; however, the panel affirmed judgment on the involuntary dismissal of property damage and bad faith claims (John Cook and Jason J. Scott v. U.S. Agencies Mgt. Services, et al., No. 2016 CA 0802, La. App., 1st Cir., 2017 La. App. Unpub. LEXIS 182).



Judge Refuses To Dismiss Insurer's Receiver's Negligence Suit Against Actuary Company
OKLAHOMA CITY - Although a California-based actuary company lacks the more-traditional contacts with a forum state, an Oklahoma federal judge on May 25 denied the company's motion to dismiss a professional negligence suit brought by an insolvent insurer's receiver because one court from "this district has already found personal jurisdiction in a similar scenario" (State of Oklahoma ex rel., John D. Doak, Insurance Commissioner, as receiver for Driver's Insurance Co. v. CTK Actuarial Services Inc., No. 17-371, W.D. Okla., 2017 U.S. Dist. LEXIS 80293).



Magistrate Judge Grants Voluntary Dismissal Of FDIC Suit Against Insolvent Insurer
FRESNO, Calif. - A California federal magistrate judge on June 8 granted the voluntary dismissal of a coverage lawsuit between the Federal Deposit Insurance Corp., as assignee of certain claims by a failed bank, and an insolvent insurer's receiver (Thomas T. Hawker, et al. v. John D. Doak, insurance commissioner as receiver for Red Rock Insurance Co. f/k/a BancInsure Inc., No. 12-1261 E.D. Calif., 2017 U.S. Dist. LEXIS 88319).



FDIC, Insolvent Insurer Seek Joint Dismissal Of Negligence Dispute
LOS ANGELES - Following an appeal that saw a reversal of summary judgment on negligence claims, the Federal Deposit Insurance Corp., as receiver for a failed bank, and an insolvent insurer on May 30 submitted to a California federal court a joint stipulation asking for dismissal of a dispute over directors and officers liability coverage (Federal Deposit Insurance Corp., as receiver for Security Pacific Bank v. BancInsure Inc., No. 12-9882, C.D. Calif.).



Judge Dismisses Insolvent Insurers' Breach Claims In Mortgage Reinsurance Suit
CHICAGO - An Illinois federal judge on June 1 dismissed breach of contract and breach of the implied covenant of good faith and fair dealing claims brought by the rehabilitator of two insolvent insurers against a mortgage insurance reinsurer and a bank (People of the State of Illinois, ex rel., Anne Melissa Dowling, Acting Director of Insurance of the State of Illinois, as Rehabilitator for Triad Guaranty Insurance Corporation and Triad Guaranty Assurance Corp. v. AAMBG Reinsurance Inc., No. 16-cv-07477, N.D. Ill., 2017 U.S. Dist. LEXIS 84231).



Panel Reverses Second Injury Fund's Denial Of Reimbursement Claims
COLUMBIA, S.C. - The South Carolina Court of Appeals on May 31 reversed the denial of reimbursement claims made by an insurer with the South Carolina Second Injury Fund for coverage provided for workers' compensation claims (Arrowpoint Capital Corp./Arrowood Indemnity Co. v. South Carolina Second Injury Fund v. Yuasa -Exide Inc., Nos. 2014-002215, 2014-002214 & 2014-002212, S.C. App., 2017 S.C. App. Unpub. LEXIS 258).



Insolvent Insurer Says U.S. Government Owes $157M In Affordable Care Act Funds
WASHINGTON, D.C. - Looking to recoup a solvency loan issued to an insolvent insurer under the Patient Protection and Affordable Care Act (ACA), the insurer's liquidators allege in their May 30 complaint in the U.S. Court of Federal Claims that the U.S. government improperly withheld $157 million in risk-sharing payments owed under the ACA (Doug Ommen, in his capacity as liquidator of CoOportunity Health Inc., and Dan Watkins, in his capacity as special deputy liquidator of CoOportunity Health Inc. v. The United States of America, No. 17-712, Fed. Clms.).



Judge Stays Failed ACA Insurers' Risk-Corridor Action
COLUMBIA, S.C. - Liquidators' Patient Protection and Affordable Care Act (ACA) risk-corridor suit on behalf of an insurer should be stayed to see if resolution of two other similar cases on appeal can speed resolution of the case, a federal judge held June 7 (Raymond G. Farmer, in his capacity as Liquidator of Consumers' Choice Health Insurance Company, et al. v. The United States of America, No. 17-363, Fed. Clms., 2017 U.S. Claims LEXIS 630).



8th Circuit Dismisses Appeal In Insolvent Insurer's ACA Suit Against Government
ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on June 13 dismissed an appeal of a ruling that an insolvent insurer's case against the government over its handling of the Patient Protection and Affordable Care Act (ACA) risk corridor and how it offset debts properly belongs before the U.S. Court of Federal Claims (Doug Ommen, in his capacity as liquidator of CoOpportunity Health Inc.; Dan Watkins, in his capacity as special deputy liquidator of CoOpportunity Health Inc. v. U.S. Department of Health and Human Services, et al., No. 17-1662, 8th Cir.).



Insurer Tells of 'Bait-And-Switch' In ACA Risk Corridors
WASHINGTON, D.C. - The government enticed insurers to the Patient Protection and Affordable Care Act (ACA) marketplace with promises to pay them under the risk-corridor program and then flip-flopped on the deal, leaving catastrophic losses and hardship in its wake, an insurer told a federal appeals court on May 22 (Land of Lincoln Mutual Health Insurance Co. v. The United States of America, No. 17-1224, Fed. Cir.).



Law Firm Seeks Review Of Quantum Meruit Relief Ruling In Suit With Insolvent Insurer
ST. PAUL, Minn. - In a dispute over payment on work done for an insolvent insurer's liquidator, a law firm petitioned the Minnesota Supreme Court on June 5 to answer "when a contingency fee lawyer is terminated by the client, may the district court consider the contingency fee agreement as one of the factors in awarding quantum meruit relief to the discharged lawyer?" (Faricy Law Firm, P.A., v. API Inc., Asbestos Settlement Trust, No. A16-1539, Minn. Sup.).



Reinsurer Opposes Insolvent Insurer's Bid To Assert Additional $362,788 In Claims
NEW YORK - A reinsurer on June 2 filed a letter with a New York federal court opposing a request by the liquidator of The Home Insurance Co. to amend a complaint to assert additional claims for $362,787.84 in a dispute over reinsurance proceeds allegedly owed to the insurer's estate (Roger A. Sevigny, the Commissioner of Insurance of the State of New Hampshire, as Liquidator of The Home Insurance Company v. Trygvesta Forsikring A/S, as successor in interest to Skandinavia Insurance Company Ltd., Trygvesta Forsikring A/S v. Cerberus Holding Company, LLC., No. 16-cv-04874, S.D. N.Y.).



Federal Circuit Dockets Appeal Over Insolvent Insurer's Inability To Pay
WASHINGTON, D.C. - The Federal Circuit U.S. Court of Appeals on June 8 docketed an appeal of a ruling that parents of an injured child failed to show that the U.S. government breached a settlement agreement over medical malpractice claims by failing to guarantee payment under annuities when an insurance company became insolvent (Karen L. Shaw, individually and as guardian of the person of Richard Scott Shaw, an incompetent, and Raymond A. Shaw v. The United States, No. 17-2136, Fed. Cir.).



8th Circuit Upholds Denial Of Release Of Restitution Duties To Insurer's Receiver
ST. LOUIS - In a criminal fraud case, an Arkansas trial court correctly denied, based on a lack of authority, a request by an insolvent insurer's owner to be released from any further obligations of restitution once payment of $300,000 was made to the insurer's receiver, the Eighth Circuit U.S. Court of Appeals ruled June 15 (United States of America v. Frank Whitbeck, No. 16-1720, 8th Cir., 2017 U.S. App. LEXIS 10606).



Judge Approves $32M In Guaranty Association Claims In Reliance Liquidation
HARRISBURG, Pa. - A Pennsylvania trial judge on June 7 granted a recommendation by the liquidator of Reliance Insurance Co. to approve 250 individual class (b) insurance guaranty associations (GAs) claims that were not previously submitted for approval for a total amount of $32,213,482.41 (In re: Reliance Insurance Co. in Liquidation, No. 1 REL 2001, Pa. Cmwlth.).



Insolvent Insurer's Liquidator Seeks Administration Expense Approval From Court
HARRISBURG, Pa. - The liquidator of Reliance Insurance Co. applied on May 25 for approval from a Pennsylvania court of a report and recommendation on administrative expenses by state insurance guaranty associations (GA) (In re: Reliance Insurance Co. in Liquidation, No. 1 REL 2001, Pa. Cmwlth.).



Judge Approves Attorney Rates In Rehabilitation Of 2 Insolvent Insurers
CHICAGO - An Illinois judge on May 4 approved a recommendation by the rehabilitator of two insolvent insurers concerning the rates per hour for retained attorney and paralegal services (People of the State of Illinois, ex rel., Jennifer Hammer, Director of the Illinois Department of Insurance v Public Service Insurance Co., an Illinois domestic stock insurance company, et al., No. 2017-CH-03790, Ill. Cir., Cook Co., Chanc. Div.).



Justice Approves $5M Settlement Of Asbestos Claims In Insurer's Liquidation
CONCORD, N.H. - A New Hampshire justice on May 22 approved a $5 million settlement between an insolvent insurer's liquidator and a manufacturer and its personal injury settlement trust with regard to asbestos bodily injury claims (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Sup., Merrimack Co.).



Trial Justice Approves $10M Settlement Of Asbestos Claims In Insurer's Liquidation
CONCORD, N.H. - A New Hampshire trial justice on May 22 approved a $10 million settlement between an insolvent insurer's liquidator and a manufacturer with regard to asbestos claims (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Sup., Merrimack Co.).



Panel Upholds Interest Date On Workers' Compensation Claim Against Insolvent Insurer
BOSTON - Interest for an employee's workers' compensation claim against an insolvent insurer starts from the date the Department of Industrial Accidents received notice of the claim resulting in the award of benefits, the Massachusetts Appeals Court affirmed May 8 (Jeffrey Comeau v. Enterprise Electronics Inc. and Eastern Casualty Insurance Co. in liquidation c/o Massachusetts Insurers Insolvency Fund, No. 2016-P-0134, Mass. App., 2017 Mass. App. LEXIS 54).



Panel: Asbestos Trust Owes Law Firm For Work On Claim To Insolvent Insurer
ST. PAUL, Minn. - A trial court erred by releasing an asbestos settlement trust of any duty to pay a law firm for work on a claim filed with an insolvent insurer despite finding that the firm performed some uncompensated work on that claim for which a promise to pay was implied, a Minnesota panel held May 8 (Faricy Law Firm, P.A., v. API Inc., Asbestos Settlement Trust, No. A16-1539, Minn. App., 2017 Minn. App. Unpub. LEXIS 421).



Insured Appeals Order On Exhaustion Claims Against Solvent, Insolvent Insurers
RICHMOND, Va. - An insured insulation company filed a notice May 2 to the Fourth Circuit U.S. Court of Appeals appealing a partial summary judgment order entered in favor of a number of solvent and insolvent insurers involved in an asbestos coverage dispute after it was determined that the insured's claims regarding the exhaustion of the insurers' policies were not timely filed (General Insurance Company of America and The Walter E. Campbell Co. Inc. v. The Continental Insurance Co., et al., No. 17-1585, 4th Cir.).



Judge Vacates 3 Demands Of Reimbursement Against CIGA For Workers' Claims
LOS ANGELES - California Insurance Guarantee Association (CIGA) is entitled to an order vacating and setting aside three reimbursement demands of $119,122 made under workers' compensation insurance policies, a California federal judge ruled May 3 (California Insurance Guarantee Association v. Thomas E. Price, Secretary of Health and Human Services, et al., No. 15-cv-01113, C.D. Calif., 2017 U.S. Dist. LEXIS 67589).



Judge: No U.S. Breach For Insolvent Insurer's Inability To Pay Annuities
WASHINGTON, D.C. - Parents of an injured child failed to show that the U.S. government breached a settlement agreement over medical malpractice claims by failing to guarantee payment under annuities when an insurance company became insolvent, a Federal Claims judge ruled March 31, granting summary judgment to the government (Karen L. Shaw, individually and as guardian of the person of Richard Scott Shaw, an incompetent, and Raymond A. Shaw v. The United States, No. 14-783C, Fed. Clms., 2017 U.S. Claims LEXIS 258).



Settlement Made In Breach Of Duty Case Over Annuities Bought From Insolvent Insurer
PORTLAND, Ore. - Plaintiffs agreed in principle on April 28 to settle their putative class action lawsuit filed in an Oregon federal court alleging that brokers breached their duty of care in purchasing structured settlement annuities from an insolvent insurer (Marie Westrope and Reggie Kelly v. Ringler Associates Inc., et al., No. 14-cv-00604, D. Ore.).



Insurers' Rehabilitator Fails To Allege Breach Of Contract Claim, Reinsurer Asserts
CHICAGO - A mortgage insurance reinsurer argues in a May 5 reply brief to an Illinois federal court that the rehabilitator of two insolvent insurers failed to assert sufficient allegations to support breach of contract and breach of the implied covenant of good faith and fair dealing claims (People of the State of Illinois, ex rel., Anne Melissa Dowling, Acting Director of Insurance of the State of Illinois, as Rehabilitator for Triad Guaranty Insurance Corporation and Triad Guaranty Assurance Corp. v. AAMBG Reinsurance Inc., No. 16-cv-07477, N.D. Ill.).



Panel Orders FIGA To Pay Actual Repair Costs Up To Combined Statutory Cap
LAKELAND, Fla. - On remand, a trial judge should enter a corrected judgment to show that an insured must contract for repairs within damages awarded by a jury and that the Florida Insurance Guaranty Association (FIGA) is required to pay actual repair costs to the contractors up to the combined statutory cap, a Florida appeals panel ruled May 12 (Maria Pupo v. Florida Insurance Guaranty Association, No. 2D15-3901, Fla. App., 2nd Dist., 2017 Fla. App. LEXIS 6775).



Justice Orders Briefing On Release Of Funds In Winding Down Of Risk-Sharing Plan
CONCORD, N.H. - Insureds should prepare an interlocutory transfer of ruling to address whether they may bring a limited fund class action against the excess funds the New Hampshire insurance commissioner seeks to tender in the winding down of the state's risk-sharing plan for medical malpractice insurance, a New Hampshire trial justice ordered May 2 (Georgia A. Tuttle, M.D., et al. v. New Hampshire Medical Malpractice Joint Underwriting Association and In the Matter of the Winding Down of the New Hampshire Medical Malpractice Joint Underwriting Association, No. 2015-347, N.H. Super., Merrimack Co., 2017 N.H. Super. LEXIS 10).



Rehabilitator: Allegations Support Breach Of Contract Claims Against Reinsurer
CHICAGO - The rehabilitator of two insolvent insurers argues in an April 21 brief in an Illinois federal court that there are sufficient allegations to support breach of contract and breach of the implied covenant of good faith and fair dealing claims against a mortgage insurance reinsurer (People of the State of Illinois, ex rel., Anne Melissa Dowling, Acting Director of Insurance of the State of Illinois, as Rehabilitator for Triad Guaranty Insurance Corporation and Triad Guaranty Assurance Corp. v. AAMBG Reinsurance Inc., No. 16-cv-07477, N.D. Ill.).



Judge Allows Law Firm Hired By Insolvent Insurer To Withdraw As Counsel
CENTRAL ISLIP, N.Y. - After an insolvent insurer's denial of coverage, a New York federal judge on April 24 granted a motion filed by a law firm appointed by the insurer to withdraw as counsel in an environmental lawsuit filed by the U.S. government (United States of America v. Estate of Lillian Wiesner, et al., No. 05-1634, E.D. N.Y., 2017 U.S. Dist. LEXIS 62078).



Justice Stays Hurricane Coverage Suit Pending Insurer's Rehabilitation
NEW YORK - A New York trial justice on May 17 stayed an insured's coverage action against its insurer over damages from Hurricane Irene pursuant to a rehabilitation order against the insurer (25 Bay Terrace Associates, L.P., v. Public Service Mutual Insurance Co., No. 150345/2013, N.Y. Sup., Richmond Co., 2017 N.Y. Misc. LEXIS 1822).



Insolvent Insurer's Insured Solely Liable For Collision, Appeals Panel Concludes
SHREVEPORT, La. - In a lawsuit against a propane gas truck driver and his insolvent insurer, a Louisiana appeals panel on May 17 affirmed partial summary judgment to a postal worker on the issue of liability because the truck driver was 100 percent at fault for a collision with the postal worker, who was free from any comparative fault (Raymond Doyle Chanler Jr. and Pamela Turner Chanler v. Jamestown Insurance Co., et al., No. 51,320-CA, La. App., 2nd Cir., 2017 La. App. LEXIS 858).



Judge Dismisses Insolvent Insurer's Owner's Case Against State Investigators
PHILADELPHIA - In dismissing a civil action brought by an insolvent insurer's owner against state regulators, a Pennsylvania federal judge found April 5 that the owner has the opportunity to present his claims in a Maryland district court or appellate court and fails to demonstrate that he is entitled to relief "to prevent a grave miscarriage of justice" (Jeffrey Cohen, personally and as sole shareholder of RB Entertainment Ventures LLC v. John Tinsley and Regulatory Insurance Services Inc., No. 16-mc-210, E.D. Pa., 2017 U.S. Dist. LEXIS 51755).



New Jersey Trial Justice Orders Auto Insurer Into Liquidation
TRENTON, N.J. - IFA Insurance Co. was ordered into liquidation by a New Jersey trial justice on May 4, and the state's insurance commissioner was appointed as liquidator of the auto insurer (Richard J. Badolato, commissioner of the Department of Banking and Insurance of New Jersey v. IFA Insurance Co., No. MER-C-20-17, N.J. Super., Mercer Co.).



Oklahoma Judge Approves Claims Evaluation In Insurer's Liquidation
OKLAHOMA CITY - An Oklahoma judge on May 5 approved the state insurance commissioner's recommendation, denying claims valued at $227,891 against Pride National Insurance Co., which is in liquidation (State of Oklahoma, ex rel. John D. Doak, insurance commissioner v. Pride National Insurance Co., No. CJ-2013-1448, Okla. Dist., Okla. Co.).



Panel Dismisses Appeal In ACA Assets Case By Insurers' Liquidators
ST. LOUIS - The Eighth Circuit U.S. Court of Appeals on March 28 dismissed an interlocutory appeal by insurers' liquidators challenging the denial of a preliminary injunction because a judge's finding of lack of jurisdiction over the suit involving the proper handling of Patient Protection and Affordable Care Act (ACA) assets moots the appeal (Nick Gerhart, et al. v. United States Department of Health and Human Services, et al., No. 16-3477, 8th Cir.).



Insurer: Government Misinterprets Law In ACA Risk-Corridor Spat
WASHINGTON, D.C. - The government attempts to muddle how its obligations form in attempting to dispel a case alleging underpayment under the Patient Protection and Affordable Care Act (ACA) risk-corridor program, an insurer told a federal judge May 15 (Health Republic Insurance Co. v. The United States of America, No. 16-259, Fed. Clms.).



United States Tells Court ACA Risk Corridor Isn't Open-Ended Liability
WASHINGTON, D.C. - The Patient Protection and Affordable Care Act (ACA) risk corridors are not now and were never intended to be an unlimited source of funds for covering insurers' losses, as the text and history of the law make clear, the United States told a federal appeals court on April 24 (Land of Lincoln Mutual Health Insurance Co. v. The United States of America, No. 17-1224, Fed. Cir.).



Government Says ACA Does Not Entitle Insurers To Billions In Taxpayer Funds
WASHINGTON, D.C. - The Patient Protection and Affordable Care Act (ACA) does not entitle insurance companies to billions of dollars in taxpayer funds, the U.S. government argues in an April 12 brief in a federal claims court, because Section 1342 of the ACA neither provides an appropriation nor authorizes the use of appropriated funds (Health Republic Insurance Co. v. The United States of America, No. 16-259, Fed. Clms.).



Insurer's Liquidator Seeks Additional $362,788 Claim Against Reinsurer
NEW YORK - In a dispute over reinsurance proceeds allegedly owed to the estate of The Home Insurance Co., the liquidator on May 11 requested a pre-motion conference in a New York federal court to address an amendment to his complaint against a reinsurer to assert an additional claim of $362,787.84 (Roger A. Sevigny, the Commissioner of Insurance of the State of New Hampshire, as Liquidator of The Home Insurance Company v. Trygvesta Forsikring A/S, as successor in interest to Skandinavia Insurance Company Ltd., Trygvesta Forsikring A/S v. Cerberus Holding Company, LLC., No. 16-cv-04874, S.D. N.Y.).