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Mississippi High Court: Members Of Failed Self-Insurers Fund Liable For Claims
JACKSON, Miss. - Former members of a failed self-insurers fund are liable for a pro rata share of workers' compensation claims, the Mississippi Supreme Court ruled Aug. 31, affirming summary judgment in favor of the Mississippi Workers' Compensation Group Self-Insurer Guaranty Association because indemnity agreements hold the former members responsible to pay (Scott Penn Inc., et al. v. Mississippi Workers' Compensation Group Self-Insurer Guaranty Association, No. 2016-CA-00944-SCT, Miss. Sup., 2017 Miss. LEXIS 353).



Federal Judge Denies Limiting Discovery In Workers' Comp 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, a Georgia federal judge on Sept. 20 denied a proposed case management approach for limited discovery (Georgia Insurers Insolvency Pool v. Sussex Insurance Co., No. 16-cv-03975, N.D. Ga.).



Judge Denies Insolvent Insurer's Bid For Defense Costs Based On Underlying Settlement
KANSAS CITY, Kan. - A Kansas federal judge on Aug. 29 overruled an insolvent directors and officers (D&O) insurer's request for litigation-related fees and costs pursuant to an underlying settlement agreement between a bank's receiver and the bank's directors and officers (BancInsure Inc. v. Carl L. McCaffree, et al., No. 12-2110, D. Kan., 2017 U.S. Dist. LEXIS 138629).



Federal Court Stays Insolvent Insurer's ACA Risk-Corridor Suit
WASHINGTON, D.C. - Judgment on any ruling that the government improperly withheld funds from a bankrupt Patient Protection and Affordable Care Act (ACA) insurer would need to wait until resolution of pending appeals of risk-corridor rulings, a federal claims court judge held Sept. 5 in staying the case (Doug Ommen, et al. v. United States, No. 17-957, Fed. Clms., 2017 U.S. Claims LEXIS 1081).



Insurer's Liquidators Oppose Dismissal Of Withholding Reinsurance Funds Claims
COLUMBIA, S.C. - Liquidators for a failed South Carolina Patient Protection and Affordable Care Act (ACA) co-operative insurer in a Sept. 5 brief in South Carolina federal court oppose the U.S. government's motion to dismiss their lawsuit alleging the improper withholding of reinsurance payments from and setting off debts owed by the government (Raymond G. Farmer, et al. v. United States of America, et al., No. 17-00956, D. S.C.).



Insolvent Insurer's Owner's Federal Claims Are Barred By Limitations, Judge Says
ATLANTA - An insolvent insurer's owner's federal claims against the Georgia insurance commissioner, acting as the insurer's liquidator, and his deputy liquidator in a civil action are barred by the two-year statute of limitations, a Georgia federal judge ruled Aug. 31 (Richard O'Dom v. Ralph T. Hudgens, et al., No. 16-3911, N.D. Ga., 2017 U.S. Dist. LEXIS 140514).



Michigan High Court Sends Dispute With Insolvent Insurer Back For Reconsideration
LANSING, Mich. - The Michigan Supreme Court on Sept. 12 vacated an appeals court's decision finding that a trial court erred in not considering deposition testimony in determining whether a genuine issue of material fact existed in a coverage dispute against an insolvent insurer over personal injury protection (PIP) benefits (The Detroit Medical Center v. Michigan Property & Casualty Guaranty Association, et al., No. 154363, Mich. Sup., 2017 Mich. LEXIS 1622).



Insolvent Insurers' Receiver Seeks Clarification On Panel's Trust Law Remedies Ruling
ST. LOUIS - In a dispute over the mishandling of funds belonging to insolvent funeral insurers, a receiver and state guaranty associations petitioned for panel rehearing on Sept. 14 so that the Eighth Circuit U.S. Court of Appeals can clarify that it was not attempting to limit trust law remedies available to the trial court on remand (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).



Insolvent Insurer Opposes Lifting Federal Court Case Stay Pending Receivership
BOISE, Idaho - A trust bank's request to lift a stay on its coverage case against an insolvent insurer pending the insurer's receivership proceedings and the bank's request for a preliminary injunction should be denied, the insolvent insurer argues in a Sept. 8 response in Idaho federal court (Idaho Trust Bank v. BancInsure Inc., et al., No. 12-00032, D. Idaho).



Special Deputy Receiver Opposes Arbitration In $1M Reinsurance Dispute
AUSTIN, Texas - A special deputy receiver in a Sept. 5 filing in a Texas federal court opposes a New Zealand reinsurer's motion to transfer or stay a $1 million claim under a reinsurance agreement pending arbitration because the forum-selection clause and arbitration provision do not apply (Gramercy Insurance Co. v. Contractor's Bonding Ltd., No. 17-723, W.D. Texas).



Reinsurer Says It And Home's Liquidator Agree To Stipulation In Breach Of Contract Suit
NEW YORK - A reinsurer on Sept. 8 wrote to a New York federal court advising it that the reinsurer and the liquidator of The Home Insurance Co. have agreed on a stipulation proposed to address claims and other issues in a dispute over reinsurance proceeds allegedly owed to the insurer's estate (Roger A. Sevigny v. Trygvesta Forsikring A/S, Trygvesta Forsikring A/S v. Cerberus Holding Company, LLC., No. 16-04874, S.D. N.Y.).



New Hampshire Justice Approves Home's Liquidator's $16M Asbestos Settlements
CONCORD, N.H. - A New Hampshire justice on Aug. 22 approved two settlements totaling more than $16 million to resolve asbestos claims against insureds under seven insurance policies issued by an insolvent insurer (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).



New Hampshire Justice Approves Home's Liquidator's Settlement With Insured
CONCORD, N.H. - A New Hampshire justice on Sept. 3 approved a settlement agreement of $178,545 between the liquidator for The Home Insurance Co. and an insured (In the matter of the liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).



8th Circuit Finds Insurers' Receiver's Trust-Law Claim Should Be Tried By Court
ST. LOUIS - In a dispute over the mishandling of funds belonging to insolvent funeral insurers, the Eighth Circuit U.S. Court of Appeals ruled 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 15621).



Panel: Assignee's Breach Of Contract Suit Against Reinsurer Is Untimely
CHICAGO - A breach of contract lawsuit filed by an assignee of certain reinsurance receivables rights from an insolvent insurer was untimely, the Seventh Circuit U.S. Court of Appeals affirmed Aug. 7, finding that 215 Illinois Insurance Code Statute 5/206, 215 ILCS 5/206, does not provide that a liquidator may wait until the end to net the debits and credits (Pine Top Receivables of Illinois, LLC v. Banco De Seguros Del Estado, No. 16-3499, 7th Cir., 2017 U.S. App. LEXIS 14492).



Judge Declines To Stay Coverage Action Pending Insurer's Liquidation
ST. LOUIS - A Missouri federal judge on Aug. 16 refused to stay a professional liability insurer's dispute against an insolvent insurer over wrongful act claims submitted by the insolvent insurer because she found that the contractual issues are not pivotal to the underlying state court liquidation action (Allied World Surplus Lines Insurance Co. v. Galen Insurance Co., et al., No. 17-1185, E.D. Mo., 2017 U.S. Dist. LEXIS 130426).



Judge Enters Judgment On Reimbursement Sought Against CIGA For Workers' Comp Claims
LOS ANGELES - A California federal judge entered judgment on Aug. 9 vacating and setting aside three reimbursement demands made to the California Insurance Guarantee Association (CIGA) under workers' compensation insurance policies (California Insurance Guarantee Association v. Thomas E. Price, et al., No. 15-01113, C.D. Calif.).



Tennessee Insurance Guaranty Association Seeks Remand Of Reimbursement Suit
NASHVILLE, Tenn. - The Tennessee Insurance Guaranty Association (TIGA) argues in an Aug. 14 brief that a Tennessee federal court should remand its reimbursement dispute over a workers' compensation claim against book publishers because diversity jurisdiction is not present (Tennessee Insurance Guaranty Association v. Penguin Random House LLC, et al., No. 17-1070, M.D. Tenn.).



Reinsurer Tells Federal Court Defunct Insurer Agreed To Arbitrate Reinsurance Case
AUSTIN, Texas - A New Zealand reinsurer in an Aug. 22 motion asks a Texas federal court to transfer venue to the state of Georgia or compel arbitration of a reinsurance agreement dispute with an insolvent insurer based upon the agreement's arbitration clause (Gramercy Insurance Co. v. Contractor's Bonding Ltd., No. 17-723, W.D. Texas).



Government Seeks Dismissal Of Failed ACA Insurer's Claims Of Withholding Reinsurance Funds
COLUMBIA, S.C. - The U.S. government on Aug. 22 moved to dismiss a lawsuit filed by an insurer's liquidators in a South Carolina federal court, where it is accused of the improper withholding of reinsurance payments from, and setting off debts owed by, the failed South Carolina Patient Protection and Affordable Care Act (ACA) co-operative insurer (Raymond G. Farmer, et al. v. United States of America, et al., No. 17-cv-00956, D. S.C.).



Judge Issues Order On Sealing Docs In Workers' Comp Insurer, Insolvent Insurer Dispute
ATLANTA - In a dispute over whether workers' compensation policies insured certain staffing companies for claims also tendered to an insolvent insurer, a Georgia federal judge issued a protective order on Aug. 28 on the procedures for sealing confidential materials (Georgia Insurers Insolvency Pool v. Sussex Insurance Co., No. 16-3975, N.D. Ga.).



Trust Bank Seeks Lift Of Stay In Insurer's Receivership, Seeks Preliminary Injunction
BOISE, Idaho - A trust bank on Aug. 14 moved for an order in an Idaho federal court to lift a stay pending an insurer's receivership proceedings and for a preliminary injunction, arguing that the receiver has ignored a summary judgment ruling for more than two years and recommended that the insured take nothing (Idaho Trust Bank v. BancInsure Inc., et al., No. 12-00032, D. Idaho).



Justice Places Fiduciary Insurance Company Of America Into Liquidation
JAMAICA, N.Y. - A New York justice on July 25 ordered Fiduciary Insurance Company of America to be placed into liquidation and named the state's financial services superintendent as liquidator (In the matter of the application of Maria T. Vullo, Superintendent of Financial Services of New York for an order to take possession and liquidate Fiduciary Insurance Company of America, No. 703264/2017, N.Y. Sup., Queens Co.).



Insurer's Receiver Asks Trial Court To Set Date For Objection On Claims Denial
OKLAHOMA CITY - An insolvent insurer's receiver on Aug. 8 moved an Oklahoma trial court to provide a deadline of notice for any objection to his claims evaluation and recommendations in the insurer's liquidation proceeding (State of Oklahoma, ex rel. John Doak v. Pegasus Insurance Company Inc., No. CJ-2010-5131, Okla. Dist., Oklahoma Co.).



Judge Terminates Policy Coverage In SeniorSure Healthplan Receivership
OKLAHOMA CITY - An Oklahoma judge on Aug. 10 terminated policy coverage and authorized the return of unearned premiums to insureds in the receivership of SeniorSure Healthplan Inc. (State of Oklahoma, ex rel. John D. Doak v. SeniorSure Healthplan Inc., No. CJ-2017-3547, Okla. Dist., Okla. Co.).



Judge Approves Payment Of Reinsurance To Insured In Insurer's Liquidation
HARRISBURG, Pa. - In the liquidation of Reliance Insurance Co., a Pennsylvania trial judge on Aug. 9 approved 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.).



Judge Puts An End To Atlantic Preferred Insurance's Liquidation
TALLAHASSEE, Fla. - A Florida trial judge closed the estate of Atlantic Preferred Insurance Co. Inc. on June 7, directing final discharge and authorizing destruction of obsolete records in the insurer's liquidation (In re Atlantic Preferred Insurance Company Inc., No. 2006-CA-001083, Fla. Cir., 2nd Cir., Leon Co.).



Trial Judge Closes Estate Of Florida Workers' Compensation Fund
TALLAHASSEE, Fla. - A Florida trial judge ordered the closure of the receivership for Florida Workers' Compensation Fund (FWCF) on June 27 and ordered the receiver to retain $570,625.45 as a reserve for "wind up" expenses (In Re: Receivership of Florida Workers' Compensation Fund, No. 1998-CA-3962, Fla. Cir., Leon Co.).



Judge Closes Estate Of HomeWise Preferred Insurance Company
TALLAHASSEE, Fla. - A Florida judge on June 27 directed the final discharge and authorized the destruction of obsolete records in the receivership of HomeWise Preferred Insurance Co., thus, effectively closing the insurer's estate (In re: Receivership of HomeWise Preferred Insurance Co., No. 2011-CA-2404, Fla. Cir., 2nd Jud., Leon Co.).



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.).