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Panel Declines To Reopen Insurer's Liquidation For Decades-Old Proofs Of Claim
TRENTON, N.J. - A Michigan state road agency cannot reopen the liquidation of Integrity Insurance Co. to recover payouts from car accident claims, a New Jersey appeals panel affirmed Jan. 19, finding that the liquidation was properly finalized (In the matter of the liquidation of Integrity Insurance Co., No. A-3285-15T3, N.J. Super., App. Div., 2018 N.J. Super. Unpub. LEXIS 134).



Texas Federal Judge Opts To Transfer Dispute Between Insolvent Insurer, Reinsurer
AUSTIN, Texas - Rather than remand or compel arbitration, a Texas federal judge on Jan. 19 transferred venue of a reinsurance agreement dispute between a reinsurer and an insolvent insurer to a Georgia federal court based upon a forum-selection clause (Gramercy Insurance Co. v. Contractor's Bonding Ltd., No. 17-723, W.D. Texas, 2018 U.S. Dist. LEXIS 8674).



Bankruptcy Federal Judge Approves Insolvent Mortgage Insurer's Reorganization
WILMINGTON, Del. - A Delaware federal bankruptcy judge on Jan. 9 confirmed an insolvent mortgage insurer's Chapter 11 reorganization over objections from the Office of the U.S. Trustee and Illinois regulators (In re: Triad Guaranty Inc., Chapter 11, No. 13-11452, D. Del. Bkcy.).



Panel Affirms Ending Of Benefits Paid By Insurance Guaranty Association
BATON ROUGE, La. - In a workers' compensation case, a Louisiana appeals panel on Jan. 8 upheld the termination of indemnity and medical benefits paid by the Kentucky Insurance Guaranty Association (KIGA) because there was no connection between an employee's multiple sclerosis (MS) diagnosis and work accident (Kym Hurst v. Cirrus Allied LLC and Kentucky Insurance Guaranty Association, No. 2017 CA 0731, La. App., 1st Cir., 2018 La. App. LEXIS 43).



Florida High Court Ends Workers' Comp Suit Review Against Insolvent Insurer
TALLAHASSEE, Fla. - The Florida Supreme Court on Dec. 29 approved the voluntary dismissal of a review in a workers' compensation lawsuit filed by an employer and its insolvent insurer against a claimant (Laura Stewart v. Florida Workers' Compensation Insurance Guaranty Association, et al., No. SC17-1757, Fla. Sup., 2017 Fla. LEXIS 2568).



Judicial Notice Of Documents Addressed In Case Between Insolvent Insurer, Former Owner
WILMINGTON, Del. - In a dispute between an insolvent insurer and the insurer's former owner who is now in prison for wire fraud, a Delaware master in chancery on Jan. 18 recommended that the court take judicial notice of certain documents and statements pertaining to the insurer's liquidation proceeding and the owner's criminal trial (Indemnity Insurance Corp., RRG v. Jeffrey Cohen, C.A. No. 8985-CB, Del. Chanc., 2018 Del. Ch. LEXIS 16).



Trial Judge Approves Final Notices Of Determinations In Insurer's Liquidation
HARRISBURG, Pa. - A Pennsylvania trial judge on Jan. 17 approved a liquidator's application on her recommendation of final life and health guaranty association (L&H GAs) omnibus notices of determinations (NODs) in Reliance Insurance Co.'s liquidation proceeding (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).



Insurance Commissioner Files Accounting Report In Insurer's Liquidation
ST. THOMAS, Virgin Islands - A Virgin Islands insurance commissioner filed an accounting and status report on Dec. 29 as requested by a Virgin Islands federal judge in a previous order discharging the commissioner as liquidator of an insolvent insurer (In the matter of Phoenix Fire and Marine Insurance Company Ltd., No. 1991-271, D. Virgin Islands).



Judge Approves Liquidator's Recommendation Of $27M For Notices Of Determination
HARRISBURG, Pa. - A Pennsylvania judge on Dec. 6 approved a liquidator's recommendation of a total allowed amount of $27 million for 256 notices of determinations (NODs) in Reliance Insurance Co.'s liquidation proceeding (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).



Judge Dismisses Negligence Case Against Insolvent Insurer's Former Directors
SALT LAKE CITY - A Utah federal judge on Dec. 27 dismissed a negligence and breach of fiduciary duty dispute filed by the liquidator of an insolvent insurer against the insurer's former directors and officers (Western Insurance Co. v. Dick L. Rottman, et al., No. 13-00436, D. Utah).



Actuary Company Answers Negligence Claim By Insurer's Receiver In Federal Court
OKLAHOMA CITY - An actuary services provider and its chief executive officer on Dec. 18 responded to a second amended complaint filed by an insolvent insurer's receiver in an Oklahoma federal court, in which the receiver alleges failure to properly investigate and accurately report on the insurer's financial standing and reinsurance contracts (Oklahoma ex rel., John D. Doak v. CTK Actuarial Services Inc., No. 17-371, W.D. Okla.).



Liquidator Files Breach Of Contract Claim Against Holding Company In Reinsurance Suit
NEW YORK - In a dispute over reinsurance proceeds allegedly owed to an insolvent insurer, a liquidator on Jan. 2 asserted a breach of contract claim in a New York federal court against a holding company based upon its alleged assumption of facultative reinsurance agreements and subsequent breach of those agreements (Roger A. Sevigny v. Trygvesta Forsikring A/S, Trygvesta Forsikring A/S v. Cerberus Holding Company LLC., No. 16-04874, S.D. N.Y.).



Family Sues New Jersey Insurance Guaranty Association For Benefits
NEWARK, N.J. - A New Jersey mother and her minor daughter filed a personal injury lawsuit on Jan. 22 against a driver and the state's insurance guaranty association, alleging that they are entitled to uninsured motorist benefits for the driver's negligence (Shamya Tillery, et al. v. Lynnes Nissan, et al., No. ESX-L-000497-18, N.J. Super., Essex Co.).



Bicyclist Sues New Jersey Insurance Guaranty Association For Injuries
NEWARK, N.J. - A New Jersey man alleges in a Jan. 8 complaint filed in a New Jersey state court that the state's insurance guaranty association is responsible for his damages arising out of an accident with an uninsured driver (Allan Smith v. New Jersey Property Liability Insurance Guaranty Association, No. N/a, N.J. Super., Essex Co.).



Taxi Passenger Sues New Jersey Insurance Guaranty Association
PATERSON, N.J. - A passenger in a car accident alleges in a Dec. 14 complaint that the New Jersey Property-Liability Insurance Guaranty Association (NJPLIGA) is responsible for her personal injuries (Rylent Lawrence v. The New Jersey Property-Liability Insurance Guaranty Association, et al., No. PAS-L-004066-17, N.J. Super., Passaic Co.).



Man Sues New Jersey Insurance Guaranty Association For Injuries
NEWARK, N.J. - A New Jersey man seeks damages from the state's insurance guaranty association in a Nov. 21 complaint filed in a New Jersey trial court for personal injuries arising out of a car accident (Joaquin Jacques v. New Jersey Property Liability Insurance Guaranty Association, et al., No. ESX-L-008212-17, N.J. Super., Essex Co.).



Florida Judge Ends Southern Family Insurance Co.'s Receivership
TALLAHASSEE, Fla. - A Florida trial judge closed the receivership for Southern Family Insurance Co. (SFIC) on Dec. 11 and approved the receiver's discharge accounting statement (In re: The receivership of Southern Family Insurance Co., No. 2006 CA 1060, Fla. Cir., Leon Co.).



New Hampshire Judge Approves $42M Settlement Between Insolvent Insurer, Insured
CONCORD, N.H. - A New Hampshire trial judge on Jan. 6 approved a $42 million settlement made by the liquidator of The Home Insurance Co. with an insured (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).



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.).



Insurer's Liquidator Did Not Waive Sovereign Immunity, Panel Finds
ATLANTA - An insolvent insurer's liquidator did not waive sovereign immunity under the Insurers Rehabilitation and Liquidation Act as to claims for payment of administrative expenses and attorney fees, a Georgia appeals panel ruled Oct. 31 (State of Georgia, et al. v. International Indemnity Co., Nos. A17A1195 & A17A1196, Ga. App., 2017 Ga. App. LEXIS 543).



Panel: Statute Of Repose, Bar Date Do Not Violate Claimant's Constitutional Rights
RALEIGH, N.C. - The bar date and the statute of repose under North Carolina law do not violate the North Carolina or U.S. constitutions, "either facially or as applied" to a claimant filing a workers' compensation claim with the North Carolina Insurance Guaranty Association (NCIGA), a North Carolina appeals panel ruled Nov. 7 (Thelma Bonner Booth, et al. v. Hackney Acquisition Co., et al., No. COA17-274, N.C. App., 2017 N.C. App. LEXIS 921).



Judge Denies Ruling On Insolvent Surety's Liability On Immigration Bonds
MINNEAPOLIS - A Minnesota federal judge on Nov. 14 refused to declare that a liquidated surety's liability on federal immigration bonds attaches when the bonds are issued (The United States of America v. Mike Rothman, Minnesota insurance commissioner as liquidator of Minnesota Surety and Trust Co., No. 17-2064, D. Minn., 2017 U.S. Dist. LEXIS 187981).



Pa. High Court Denies Review Of Ruling On $1M Claim Against Insurance Guarantor
HARRISBURG, Pa. - The Pennsylvania Supreme Court on Nov. 16 declined to review a lower court's vacating of a trial court finding that a $1 million default judgment claim against the state's insurance guarantor was time-barred (James Green v. Pennsylvania Property and Casualty Insurance Guaranty Association, No. 256 WAL 2017, Pa. Sup., 2017 Pa. LEXIS 2995).



Florida High Court Accepts Appeal Of Court's Refusal To Conduct New Appraisal
TALLAHASSEE, Fla. - The Florida Supreme Court on Oct. 20 accepted an appeal of an appellate decision finding that an insured's post-appraisal submission of increased costs with a state insurance guaranty association in a Hurricane Wilma coverage dispute is not a legally sufficient basis to reopen the existing appraisal or conduct a new appraisal (Orlando Noa v. Florida Insurance Guaranty Association, No. SC17-738, Fla. Sup., 2017 Fla. LEXIS 2124).



Insolvent Insurers' Receiver Seeks Panel's Clarification On Trust Law Remedies Ruling
ST. LOUIS - A receiver and state guaranty associations ask in an Oct. 27 reply brief that the Eighth Circuit U.S. Court of Appeals clarify that its intention was not to limit trust law remedies available to a trial court on remand in a dispute over the mishandling of funds belonging to insolvent funeral insurers (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 15621).



Virgin Islands Federal Judge Discharges Liquidator Of Insolvent Insurer
ST. THOMAS, Virgin Islands - A Virgin Islands federal judge on Nov. 3 discharged an insurance commissioner as liquidator of an insolvent insurer and ordered $400,000 of unclaimed funds awarded to the Division of Banking and Insurance, Office of the Lieutenant Governor, to cover administrative costs incurred during the liquidation (Osbert E. Potter, et al. v. Phoenix Fire and Marine Insurance Company Ltd., et al., No. 1991-271, D. Virgin Islands, 2017 U.S. Dist. LEXIS 182663).



Justice Orders Insurer To Show Cause As To Why It Should Not Be Liquidated
NEW YORK - Park Insurance Co. has until Nov. 20 to show why it should not be placed in liquidation at the request of the New York superintendent of insurance, a New York justice said Oct. 19 (In the matter of the application of Park Insurance Co., No. 452877/17, N.Y. Sup., New York Co.).



Insurer's Liquidator Asks For Approval On Omnibus Notices Of Determination
HARRISBURG, Pa. - An insolvent insurer's liquidator filed an application on Nov. 1 with a Pennsylvania trial court for an order approving her recommendation on final state insurance guaranty association (GA) omnibus notices of determination (NODs) (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).



New York Trial Court Terminates Insurer's Liquidation Proceeding
NEW YORK - A New York trial court on Nov. 2 closed the estate of Cosmopolitan Mutual Insurance Co. (In the matter of the liquidation of Cosmopolitan Mutual Insurance Co., No. 42638/80, N.Y. Sup., New York Co.).



Justice Orders Claimants To Show Cause Opposing Close Of Insurer's Liquidation
NEW YORK - A New York justice on Nov. 8 ordered that all persons interested in the affairs of ICM Insurance Co. should show why the insurer's liquidation proceeding should not be closed pursuant to the request of the liquidator (In the matter of the liquidation of ICM Insurance Co., No. 452122/13, N.Y. Sup., New York Co.).



Home's Liquidator Asks For Approval Of $9.3M Asbestos Settlement With Insured
CONCORD, N.H. - The liquidator for The Home Insurance Co. on Nov. 3 asked a New Hampshire trial court to approve a $9.3 million settlement with an insured to resolve asbestos claims under eight insurance policies (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).