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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.).



Panel: Kentucky Insurance Guaranty Association Liable For Miner's Black Lung Benefits
CINCINNATI - The Kentucky Insurance Guaranty Association (KIGA) should provide benefits under the Black Lung Benefits Act to a disabled miner now that a mine operator and its insurer are both insolvent, the Sixth Circuit U.S. Court of Appeals affirmed Sept. 29 (Island Fork Construction v. Jimmy Bowling, No. 16-4319, 6th Cir., 2017 U.S. App. LEXIS 18891).



Panel: Michigan Insurance Guaranty Association Failed To Pay Settlement Agreement
LANSING, Mich. - The Michigan Property & Casualty Guaranty Association (MPCIGA) could not raise any valid defense as to why it wrongfully failed to pay an amount owed to an estate by an insolvent insurer, a Michigan appeals panel ruled Oct. 12, affirming summary disposition to the estate (Dorothy Hassan v. Michigan Property & Casualty Guaranty Association, No. 332738, Mich. App., 2017 Mich. App. LEXIS 1593).



Health Care Provider Has No Right To File Case Against Insolvent Insurer, Panel Says
LANSING, Mich. - An injured person's health care provider has no independent statutory right to bring an action against an insolvent no-fault insurer for payment of personal injury protection (PIP) benefits, a Michigan appeals panel ruled Oct. 19, applying recent Michigan Supreme Court law (The Detroit Medical Center v. Michigan Property & Casualty Guaranty Association, et al., No. 326792, Mich. App., 2016 Mich. App. LEXIS 2596).



Panel Affirms Denial Of Disability Benefits Under Insolvent Insurer's Policy
SALT LAKE CITY - An accident did not cause a worker's degenerative arthritis, an Utah appeals panel ruled Oct. 13, declining to disturb the denial of the worker's permanent partial disability (PPD) compensation under an insolvent insurer's policy (Raymond M. Snyder v. Labor Commission, et al., No. 20160822-CA, Utah App., 2017 Utah App. LEXIS 197).



Workers' Comp Insurer Offers Discovery Plan In Suit With Insolvent Insurer
ATLANTA - A workers' compensation insurer proposes a stipulated discovery plan and scheduling order on Oct. 9 with the Georgia federal court in a dispute over whether its policies insured certain staffing companies for claims also tendered to an insolvent insurer (Georgia Insurers Insolvency Pool v. Sussex Insurance Co., No. 16-03975, N.D. Ga.).



Denied Motorist Coverage Meets Definition Of Uninsured Under Insolvent Insurer's Policy
INDIANAPOLIS - A vehicle involved in a car accident that has liability insurance but was denied coverage meets the definition of uninsured motor vehicle under an insolvent insurer's policy, an Indiana appeals panel ruled Sept. 25 (Indiana Insurance Guaranty Association v. Carlos A. Smith, No. 71A03-1703-CT-610, Ind. App., 2017 Ind. App. LEXIS 403).



Judge Refuses To Dismiss Recovery Claim On Settlement With State Guaranty Association
COLUMBIA, S.C. - A South Carolina federal judge on Sept. 20 denied a request to dismiss an insurer's claim seeking recovery of a portion of a settlement with the North Carolina Insurance Guaranty Association (NCIGA) in correspondence with below-deductible obligations under insurance policies (Companion Property and Casualty Insurance Co. v. Charles David Wood Jr., et al., No. 17-00514, D. S.C., 2017 U.S. Dist. LEXIS 152688).



Judge Declines To Dismiss Claims Against Bank Over Reinsurance Trust Mishandling
COLUMBIA, S.C. - An insurer sufficiently alleged claims for breach of contract, breach of fiduciary duty, negligence/gross negligence and negligent misrepresentation against a bank for its role as trustee of a reinsurance trust with an insolvent insurer, a South Carolina federal judge ruled Sept. 28, refusing to dismiss the claims (Accident Insurance Company Inc. v. U.S. Bank National Association, et al., No. 16-2621, D. S.C., 2017 U.S. Dist. LEXIS 159628).



Judge Issues Stipulations In Reinsurer, Liquidator's Breach Of Contract Suit
NEW YORK - A New York federal judge on Sept. 26 granted stipulations agreed upon by a reinsurer and the liquidator of The Home Insurance Co. with regard to 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.).



Judge: Breach Of Duty Claim As To Funeral Trusts With Insolvent Insurers Is Barred
ST. LOUIS - A claim for determination of rights in and representation for the merchandise and services trust and a petition for a restitutionary award against trustees for breaching trustee duties relating to preneed funeral and cemetery trusts under policies with insolvent insurers are barred by the doctrine of res judicata, a Missouri federal judge ruled Sept. 28 (Winner Road Properties LLC v. BMO Harris Bank, N.A., No. 16-1395, E.D. Mo., 2017 U.S. Dist. LEXIS 161300).



Panel: Environmental Claim To Insolvent Insurer Is Barred By Res Judicata
NEW YORK - A New York appeals court affirmed on Oct. 12 that an insured's environmental claim submitted to an insolvent insurer is barred by res judicata and collateral estoppel, based on prior rulings on the same claim and issues (Northern States Power Co. v. Maria T. Vullo, No. 41294/86, N.Y. App. Div., 1st Dept., 2017 N.Y. App. Div. LEXIS 7195).



Federal Judge Remands Tennessee Insurance Guaranty Association Reimbursement Suit
NASHVILLE, Tenn. - A Tennessee federal judge on Sept. 25 remanded a reimbursement dispute filed by the Tennessee Insurance Guaranty Association (TIGA) 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., 2017 U.S. Dist. LEXIS 158988).



CIGA Appeals Judgment On Reimbursement Sought Against It For Workers' Comp Claims
LOS ANGELES - The California Insurance Guarantee Association (CIGA) on Oct. 9 cross-appealed to the Ninth Circuit U.S. Court of Appeals challenging a ruling vacating and setting aside reimbursement demands made to it under workers' compensation insurance policies (California Insurance Guarantee Association v. Don J. Wright, et al., No. 15-01113, C.D. Calif.).



Colorado High Court Grants Dismissal Of CIGA, Insured Appeal Over Recoupment
DENVER - The Colorado Supreme Court on Oct. 12 granted the voluntary dismissal of a cross-appeal of a decision finding that a net worth provision allowed the Colorado Insurance Guaranty Association (CIGA) to recoup payments it made to an insured employer's injured employee from the employer because its net worth exceeded $25 million (Sunstate Equipment Co. LLC v. Colorado Insurance Guaranty Association, No. 2016SC384, Colo. Sup., 2017 Colo. LEXIS 957).



Government: Jurisdiction Lacking In Liquidators' Suit Over Reinsurance Funds
COLUMBIA, S.C. - The U.S. government says in its Sept. 26 reply brief in a South Carolina federal court that liquidators for a failed South Carolina Patient Protection and Affordable Care Act (ACA) co-operative insurer failed to establish jurisdiction in their lawsuit alleging improper withholding of reinsurance payments from and setting off of debts owed by the government (Raymond G. Farmer, et al. v. United States of America, et al., No. 17-00956, D. S.C.).



Reinsurer Argues Dispute With Insolvent Insurer Must Be Arbitrated Or Transferred
AUSTIN, Texas - A New Zealand reinsurer argues in a Sept. 12 reply brief that a Texas federal court should transfer venue or compel arbitration of a reinsurance agreement dispute with an insolvent insurer because a breach of contract claim is subject to an arbitration clause (Gramercy Insurance Co. v. Contractor's Bonding Ltd., No. 17-723, W.D. Texas).



Judge Approves Insurer's Liquidator's Report On Allowed, Disallowed Claims
HARRISBURG, Pa. - In the liquidation of Reliance Insurance Co., a Pennsylvania trial judge on Oct. 4 approved the liquidator's report and recommendations on guaranty association (GA) notices of determination (NODs) through July 31, 2017, for disallowed and allowed claims (In re: Reliance Insurance Co. in liquidation, No. 1 REL 2001, Pa. Cmwlth.).



Home's Liquidator Seeks Approval Of $1.7M Asbestos Settlement With Insured
CONCORD, N.H. - The liquidator for The Home Insurance Co. on Oct. 23 asked a New Hampshire trial court to approve a $1.7 million settlement with an insured to resolve asbestos claims under three insurance policies (In the Matter of the Liquidation of The Home Insurance Co., No. 03-E-0106, N.H. Super., Merrimack Co.).