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Mealey's Insurance Insolvency

  • June 10, 2025

    Declaratory Judgment Suit Filed Regarding Insolvent Insurer Litigation

    TRENTON, N.J. — Excess and primary insurers filed a declaratory judgment suit in New Jersey federal court, seeking a declaration that there is no coverage in underlying litigation and arbitration proceedings involving a now-insolvent insurer due to certain policy exclusions, including an exclusion related to insolvency and receivership.

  • June 05, 2025

    Fla. Insurance Guaranty Association Files Notice Of Settlement In Water Damage Row

    FORT LAUDERDALE, Fla. — The Florida Insurance Guaranty Association (FIGA) filed a notice of settlement in a Florida state court, asking the court to strike pending matters in a water damage dispute FIGA says it settled with a homeowner who sued it as the purported statutory guarantor for his now-insolvent homeowners insurer, United Property & Casualty Insurance Co.

  • June 05, 2025

    Life Insurance Premiums Not Debt In Rehabilitation Row, Connecticut Judge Says

    WATERBURY, Conn. — Following oral arguments, a Connecticut judge clarified the interpretation of debt under the Connecticut Insurers Rehabilitation and Liquidation Act (CIRLA), opining that the argument advanced by three asset managers — that premiums owed on their life insurance policies issued by PHL Variable Insurance Co., currently in rehabilitation, constitutes debt — conflicts with binding precedent established by a long-standing ruling.

  • June 04, 2025

    Judgment Amended To Add Over $10M In Prejudgment Interest In Insurers’ ACA Dispute

    WASHINGTON, D.C. — A federal judge issued an order granting objecting members of nondispute subclasses’ motion to amend a judgment to include prejudgment interest in a risk-corridor payment class action dispute under the Patient Protection and Affordable Care Act (ACA), finding that the equitable award should be based upon the common fund escrow account rate.

  • June 03, 2025

    Utah Regulator’s Rehab Petition Is Dismissed Without Prejudice

    SALT LAKE CITY — A lawsuit in which Utah Insurance Commissioner Jonathan T. Pike sought to have Sentinel Security Life Insurance Co., Haymarket Insurance Co. and Jazz Reinsurance Co. placed into rehabilitation has been dismissed without prejudice, text-only entries in the Utah state court docket show.

  • June 03, 2025

    Court Issues Notice Requiring Attendance At Life Policy Payout Settlement Session

    CINCINNATI — An Ohio federal court issued a docket-only entry advising parties to appear for a settlement conference in a liquidating trustee’s breach of contract suit against an insurer for failure to pay the full amount owed on a life insurance policy.

  • May 30, 2025

    Insurance Magnate Files Objections To Presentence Report In Money Laundering Case

    CHARLOTTE, N.C. — Insurance magnate Greg Lindberg filed under seal objections to a presentence investigation report after he pleaded guilty to money laundering conspiracy and conspiracy regarding his $2 billion scheme to defraud insurers and policyholders by funneling money through his extensive global network of insurance companies and was convicted on retrial in a related criminal proceeding.

  • May 27, 2025

    Contempt Motion Draws Opposition In Fraud Suit Over Security Loans

    NEW YORK — Urging a New York federal court to deny a contempt motion in litigation over fraud and racketeering allegations that involve the parent company of Bermuda reinsurer 777 Re Ltd., parties who are the focus of that motion are arguing in part that the movants “made no attempt to block the transactions — because neither violates” a preliminary injunction (PI) order.

  • May 23, 2025

    Panel Rules On Writ Application, Appeal In Hurricanes Laura, Delta Coverage Suit

    LAKE CHARLES, La. — A Louisiana appeals panel denied insureds’ application for supervisory review of a lower court’s interlocutory judgment that denied their motion for summary judgment to enforce appraisal amounts in a coverage dispute over hurricanes Laura and Delta damage and vacated the lower court’s grant of Louisiana Insurance Guaranty Association’s motion for partial summary judgment.

  • May 22, 2025

    Judge Dismisses Suit Against Roofer After Dismissal Of Insurer Destroyed Diversity

    NEW ORLEANS — A Louisiana federal judge dismissed without prejudice a suit against a roofing company in a dispute with homeowners and their insurer, finding that the court no longer has subject matter jurisdiction after the now-insolvent insurer, a citizen of Florida, was previously dismissed from the suit.

  • May 21, 2025

    Estate Sues Guaranty Association For Breach Of Contract Over Water Damage

    BARTOW, Fla.  — An estate and current owners of a property once insured by a now-insolvent homeowners insurer sued the Florida Insurance Guaranty Association (FIGA) in state court over its purported failure to adequately compensate them for water damage at the property, alleging that the guaranty association stepped “into the shoes” of the now-insolvent insurer and is in breach of the insurance contract for failing to pay the claim.

  • May 20, 2025

    Homeowners Say Appellate Jurisdiction Is Proper In Breach Of Contract Dispute

    DAYTONA BEACH, Fla. — Homeowners filed a jurisdictional statement in a Florida appellate court seeking review of a lower court order denying their motion for summary judgment regarding their third-party complaint seeking a defense by the Florida Insurance Guaranty Association (FIGA) in a breach of contract dispute with a water remediation firm.

  • May 19, 2025

    Panel Reverses Judgment For Insurer In Hurricane Damage Dispute Over Attorney Fees

    LAKELAND, Fla. — In a dispute over coverage for hurricane damage, a Florida appeals court on May 16 reversed and remanded a lower court’s ruling providing that pursuant to Florida law, the insurer was entitled to recover attorney fees and costs from the date of a settlement proposal rejected by a restoration services company, finding that the lower court erred in not applying binding Florida Supreme Court precedent.

  • May 16, 2025

    Debtors Seek Judgment In Bankruptcy Dispute Over Deferred Compensation Plans

    HOUSTON —  In the aftermath of a decision that two deferred compensation plans associated with Steward Health Care System LLC are “top hat” ones and therefore roughly $60 million in “rabbi trusts” used for them could be liquidated as part of Chapter 11 bankruptcies, the debtors urged a Texas federal bankruptcy court to rule that a putative class adversary complaint in which plan participants invoke the Employee Retirement Income Security Act “is foreclosed by the doctrines of law of the case and issue preclusion.”

  • May 14, 2025

    Delaware Chancery Court Orders Hearing On Claims Disputes In Reinsurer Liquidation

    WILMINGTON, Del. — The Delaware Chancery Court scheduled a July 21 hearing on a quartet of motions concerning reinsurance claims, the establishment of a bar date and approval of dispute procedures in relation to the liquidation of life and health reinsurer Scottish Re (U.S.) Inc. (SRUS).

  • May 14, 2025

    Nonprofit Firm Files Amicus Brief In High Court In Underwriting Association Row

    WASHINGTON, D.C. — Nonprofit, public interest law firm the New England Legal Foundation (NELF) filed an amicus brief in the U.S. Supreme Court in support of the state-created Pennsylvania Professional Liability Joint Underwriting Association (JUA), which provides coverage to health care providers, including those previously insured by insurers in liquidation, and is seeking review of a Third Circuit U.S. Court of Appeals ruling holding that the JUA did not have constitutional rights to challenge the constitutionality of Pennsylvania laws due to JUA’s nature as a public entity instead of a private one.

  • May 09, 2025

    Recommendation To Remand Adopted In Hurricane Ida Dispute With Insolvent Insurer

    BATON ROUGE, La. — After review and because no objection was filed to a magistrate judge’s report, a Louisiana federal judge adopted the magistrate’s recommendation to remand to state court for lack of subject matter jurisdiction a bad faith suit filed against a now-insolvent homeowners insurer over its purported failure to pay for damages caused by Hurricane Ida.

  • May 09, 2025

    Magistrate Sets Conference Date In Life Policy Payout Breach Of Contract Suit

    CINCINNATI —  An Ohio federal magistrate judge set a settlement conference date for parties in a liquidating trustee’s breach of contract suit against an insurer for failure to pay the full amount owed on a life insurance policy.

  • May 08, 2025

    Sealing Request Gets OK In Contempt Bid In Fraud Suit Over Secured Loans

    NEW YORK — Without explanation, a New York federal judge granted a motion to seal certain documents connected to a contempt request that concerns a preliminary injunction (PI) order in litigation over fraud and racketeering allegations that involve the parent company of Bermuda reinsurer 777 Re Ltd.

  • May 07, 2025

    Utah Regulator Agrees To Mediation With Insurers He Wanted To Have Rehabilitated

    SALT LAKE CITY — The Utah Insurance Department has reported that litigation between it and Sentinel Security Life Insurance Co., Haymarket Insurance Co. and Jazz Reinsurance Co. has been paused pursuant to the parties’ agreement to participate in mediation.

  • May 06, 2025

    Policyholder’s Motion To Intervene Was Untimely, Life Insurer’s Rehabilitator Says

    WATERBURY, Conn. — The rehabilitator of life insurer PHL Variable Insurance Co. and the subsidiaries that reinsure its liabilities urged a Connecticut state court to deny as untimely a motion to intervene filed by two policyholders who say their policies are worth millions and want a moratorium order to be modified to pay death benefits on a pari passu basis.

  • May 05, 2025

    Louisiana Panel Upholds Judgment On Jury Verdict In Hurricane Ida Coverage Row

    GRETNA, La. — A Louisiana state appeals court affirmed a lower court’s rulings entering judgment on a jury verdict awarding $23,534.62 to homeowners and denying a judgment notwithstanding the verdict (JNOV) in a dispute with the Louisiana Insurance Guaranty Association (LIGA) over coverage for damages caused by Hurricane Ida, finding that because the jury’s decision to not award the total amount of damages claimed by the homeowners “is supported by the evidence,” the lower court did not abuse its discretion in denying a new trial.

  • May 02, 2025

    Judgment For Guaranty Association Affirmed In Florida Law Hurricane Coverage Row

    WEST PALM BEACH, Fla.  — A Florida appellate court affirmed a lower court’s ruling granting summary judgment for the Florida Insurance Guaranty Association (FIGA) and dismissing a suit as time-barred in a dispute over coverage for a condominium association’s purported damage caused by Hurricane Irma, finding that the lower court correctly applied the appropriate Florida statute to determine that the suit was time-barred because it was filed after the applicable five-year statute of limitations.

  • April 30, 2025

    Stay Granted In $1B Insurance Fraud Case Pending Sentencing In Related Cases

    RALEIGH, N.C. — A North Carolina federal judge granted a consent motion to stay in a suit accusing Insurance magnate Greg Lindberg and his co-defendant asset management companies and other parties of Racketeer Influenced and Corrupt Organizations Act violations related to their purported participation in a $1 billion scheme to defraud now-insolvent insurers once owned by Lindberg.

  • April 30, 2025

    Residents Sue State-Mandated Insurer ‘Of Last Resort’ Over Los Angeles Wildfires

    LOS ANGELES — California residents sued the California Fair Plan Association (CFPA) and its largest members in a state court seeking damages for the defendants’ alleged bad faith breach of their property insurance policies following the Los Angeles wildfires in January.