Insurer Hit With Sanctions For Flouting Asset Freeze

Law360, New York (October 19, 2012, 9:39 PM EDT) -- A Florida federal judge on Wednesday sanctioned AAUG Insurance Co. Ltd. for failing to comply with a preliminary injunction freezing its assets and ordering an investigation into its finances in a suit claiming the insurer abruptly stopped paying health care claims.

U.S. District Judge Cecilia M. Altonaga granted International Schools Services Inc.'s request to sanction AAUG, which the nonprofit says has failed to comply with the injunction and a contempt motion by transferring $351,316 out of an AAUG account and refusing to pay forensic accounting fees...
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