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Mealey's Insurance Insolvency

  • October 23, 2025

    Guaranty Association Seeks Declaration Of No Coverage For Underlying Injury Suit

    TRENTON, N.J. — The Florida Insurance Guaranty Association (FIGA) filed a complaint in New Jersey federal court against an insured whose homeowners insurer is now insolvent, seeking a declaration that pursuant to a policy exclusion, no coverage is owed to the insured who is a defendant in an underlying personal injury suit and that the coverage under the policy at issue is excess to the insured’s other homeowners insurance.

  • October 22, 2025

    N.C. High Court Finds Review Of Insurance Fraud Ruling ‘Improvidently Allowed’

    RALEIGH, N.C. — The North Carolina Supreme Court issued an opinion stating that its prior discretionary review was “improvidently allowed” regarding an appeal by the purchaser of insurers in liquidation or rehabilitation of an appellate court’s decision affirming a ruling finding liability for fraud in a breach of contract suit.

  • October 22, 2025

    Louisiana High Court Won’t Review Asbestos Liability Row With Guaranty Association

    NEW ORLEANS — The Louisiana Supreme Court denied a petition for a writ of certiorari filed by the Louisiana Insurance Guaranty Association (LIGA) seeking review of an appellate court’s reversal of a ruling granting summary judgment to an insurer and to LIGA but denying a motion for partial summary judgment filed by family members in a dispute over their deceased relative’s death purportedly from asbestos exposure.

  • October 20, 2025

    Insolvent Insurer’s Liquidator Gets Judgment Of Over $13K In Dispute With Insured

    NEW YORK — A New York state court justice granted default judgment to the superintendent of the New York Department of Financial Services, acting as the liquidator for an insolvent insurer, in her suit seeking to recover funds from an insured, finding that the superintendent proved entitlement to default judgment.

  • October 14, 2025

    Florida Panel Affirms Order Compelling Appraisal In Hurricane Irma Coverage Suit

    WEST PALM BEACH, Fla. — Without explanation, a Florida appellate court affirmed a lower court order granting insureds’ motion to compel appraisal in a breach of contract suit against the Florida Insurance Guaranty Association (FIGA) over damage purportedly caused by Hurricane Irma.

  • October 13, 2025

    Newsom Signs FAIR Plan Legislation For State ‘Insurer Of Last Resort’

    SACRAMENTO, Calif. — California Gov. Gavin Newsom signed California Assembly Bill 234, California FAIR Plan Association Governing Committee, a bill sponsored by Democratic Assembly Member Lisa Calderon, who stated that the bill “increases transparency of the FAIR Plan by requiring the Speaker of the Assembly and the Chairperson of the Senate Committee on Rules (or a designee) to serve as members” of the committee and “ensures the public has a seat at the table.”

  • October 10, 2025

    Claims Objection Bar Date Extended By 180 Days In Vesttoo Liquidation

    WILMINGTON, Del. — A federal bankruptcy judge in Delaware extended the claims objection bar date in the Chapter 11 liquidation of Vesttoo Ltd. and its dozens of affiliates by 180 days to April 6, 2026, finding that additional time will benefits all involved parties after the liquidated reinsurance provider cited a need for more time to generate proceeds and reconcile claims.

  • October 10, 2025

    Fla. Panel Affirms Judgment For Insurer In Wind, Water Damage Coverage Dispute

    MIAMI — A Florida appellate court affirmed a lower court’s ruling granting summary judgment for insurer Citizens Property Insurance Corp., which describes itself on its website as Florida’s “insurer of last resort,” in a dispute over coverage for an insured homeowner’s purported wind and water damage, finding in part that pursuant to Florida law, a party cannot use an affidavit that is contrary to prior testimony to argue against a motion for summary judgment.

  • October 09, 2025

    Pa. Federal Magistrate Recommends Dismissing Pension Risk Transfer Case

    PITTSBURGH — Agreeing with two of the five recent rulings in similar Employee Retirement Income Security Act putative class actions and citing Thole v. U.S. Bank N.A., a Pennsylvania federal magistrate judge recommended dismissing a pension risk transfer (PRT) challenge for lack of standing on the grounds that none of their three claimed injuries pass muster.

  • October 08, 2025

    Motion To Disclose Policyholder Data Granted In Insurance Conspiracy Case

    CHARLOTTE, N.C. — A North Carolina federal magistrate judge granted a court-appointed special master’s consent motion to compel disclosure of policyholder data and for a protective order in a case in which insurance magnate Greg Lindberg pleaded guilty to money laundering conspiracy and conspiracy for his $2 billion scheme to defraud insurers and policyholders by funneling money through his extensive global network of insurance companies.  Lindberg was also convicted on retrial in a related criminal proceeding.

  • October 06, 2025

    Judge: Retirees In PRT Challenge Have Standing But Didn’t State Claims

    BOSTON — Overruling objections from each party in a putative class action that is part of a wave of challenges to pension risk transfers (PRTs), a Massachusetts federal judge granted dismissal motions upon concluding that the plaintiff retirees narrowly have standing because of allegations that they “received an inferior financial benefit than that to which they were entitled” — but failed to state their claims.

  • October 02, 2025

    California Insurance Commissioner Issues Bulletin On Fire-Related Cancellation

    SACRAMENTO, Calif. — California Insurance Commissioner Ricardo Lara issued a bulletin requiring insurance companies not to cancel or refuse to renew residential property insurance for properties located in a specified ZIP code within or adjacent to a fire perimeter for one year after the state of emergency that was issued by Gov. Gavin Newsom on Sept. 19 related to the TCU Lightning Complex Fires near Chinese Camp, Calif.

  • October 01, 2025

    Judge Remands Sexual Abuse Suit Involving Diocese Insured By Insolvent Insurer

    NEW YORK — A New York federal judge on Sept. 30 granted a motion to remand filed by a man asserting claims for sexual abuse pursuant to New York’s Child Victims Act (CVA) against the Roman Catholic Diocese of Brooklyn, which is insured by a now-insolvent insurer, and related parties, finding that remand is appropriate due to mandatory abstention and permissible abstention because the suit can be resolved in a timely manner in state court and state courts “have a strong interest” in addressing issues regarding CVA claims.

  • September 30, 2025

    New York Federal Judge Deepens Standing Split In Series Of PRT Challenges

    NEW YORK — Days after a different New York federal judge dismissed a similar pension risk transfer (PRT) complaint for lack of standing, a New York federal judge on Sept. 29 largely declined to dismiss a putative class case, ruling that retirees have standing because they sufficiently alleged that the PRT “created a substantial risk that Plaintiffs will not receive their benefits” and “diminished the value of Plaintiffs’ benefits.”

  • September 25, 2025

    A 2nd Pension Risk Transfer Case Is Dismissed For Lack Of Standing

    ALBANY, N.Y. — Nearly six months after the first two rulings on dismissal motions in a much-watched recent set of putative class actions challenging pension risk transfers (PRTs) that retirees allege increase the possibility that they won’t get all of their promised benefits because of factors including offshore captive reinsurance, a New York federal judge issued the third ruling on Sept. 24, granting dismissal without prejudice for failure “to plausibly allege any injury-in-fact sufficient to establish standing.”

  • September 25, 2025

    180-Day Extension Of Claims Objection Bar Date Requested In Vesttoo Liquidation

    WILMINGTON, Del. — A Delaware federal bankruptcy court has been asked to extend the claims objection bar date in the Chapter 11 liquidation of Vesttoo Ltd. and its dozens of affiliates by 180 days to April 6, 2026, with the beleaguered reinsurance provider citing a need for more time to generate proceeds and reconcile claims.

  • September 25, 2025

    Nebraska Unfair Insurance Trade Practices Act Changes Go Into Effect

    LINCOLN, Neb. — Nebraska has enacted Legislative Bill 326, making changes to the Unfair Insurance Trade Practices Act and the Nebraska Property and Liability Insurance Guaranty Association Act, adding, among other things, a definition for cybersecurity insurance and provisions related to covered claims and orders of liquidation.

  • September 25, 2025

    Couple Sues Florida Insurance Guaranty Association In Dispute Over Fire Coverage

    BRADENTON, Fla. — A Florida couple sued the Florida Insurance Guaranty Association (FIGA) in Florida state court, asserting that it is the “court appointed receiver” for their now-insolvent insurer, seeking coverage for damage to their property resulting from a fire.

  • September 23, 2025

    Judge Defers Ruling In Insurance Dispute Involving Arbitration, $524M Judgment

    TAMPA, Fla. — In a docket-only order on Sept. 22, finding that the court cannot determine “whether diversity jurisdiction exists in this case,” a Florida federal judge deferred ruling on any pending motions in a suit filed by insurance mogul Greg Lindberg, the former owner of now-insolvent insurers, seeking to compel arbitration against a Puerto Rico insurer related to a dispute with it involving a $524 million judgment pursuant to a personal guaranty for a reinsurance agreement.

  • September 23, 2025

    Insurer, Reinsurer File Joint Dismissal Motion In Mine Coverage Dispute

    OMAHA, Neb. — National Indemnity Co. (NICO) and a reinsurer it sued for breach of contract and declaratory judgment jointly moved in Nebraska federal court to dismiss the reinsurer with prejudice as part of NICO’s suit to enforce its reinsurers’ obligations for incurred liabilities related to asbestos exposure stemming from a Montana mine.

  • September 19, 2025

    Florida Panel Affirms Order Enforcing Settlement In Hurricane Coverage Dispute

    WEST PALM BEACH, Fla. — Without explanation, a Florida appellate court on Sept. 18 affirmed a lower court order requiring the Florida Insurance Guaranty Association (FIGA), as the purported statutory obligor for a homeowner’s now-insolvent insurer, to pay a $16,500 settlement agreed upon between the homeowner and his insurer related to hurricane damage.

  • September 17, 2025

    4th Circuit Will Consider Standing Issue In ERISA Pension Risk Transfer Case

    RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals has agreed to allow an interlocutory appeal of a ruling that retirees had standing to file a putative class lawsuit that is part of a much-watched recent string of Employee Retirement Income Security Act cases challenging pension risk transfers (PRTs) where, among other things, retirees allege that the use of offshore captive reinsurers makes annuity providers riskier.

  • September 16, 2025

    After Settlement Negotiations, Magistrate Orders Conference In Coverage Dispute

    INDIANAPOLIS — After being advised of ongoing settlement negotiations in an underlying case, an Indiana federal magistrate judge ordered the parties to attend a telephonic status conference to discuss the suit filed by an insurer now in rehabilitation seeking a declaration that specified directors and officers (D&O) policies apply to cover claims in underlying litigation.

  • September 12, 2025

    Parties Advise Court Of Settlement In Hurricane Ida Coverage Dispute

    NEW ORLEANS — Parties involved in a Hurricane Ida coverage dispute filed a joint notice of settlement in a Louisiana federal court, advising the court that they resolved the dispute between the Louisiana Insurance Guaranty Association (LIGA), a flood insurer and its insured related to the insured’s purported losses from the hurricane.

  • September 08, 2025

    Texas High Court Declines Insurer’s Request To Review Storm Damage Coverage Suit

    AUSTIN, Texas — In its Sept. 5 orders pronounced, the Texas Supreme Court denied an insurer’s petition asking it to review an appeals court’s ruling that affirmed a lower court’s grant of summary judgment in favor of a hotel owner insured in a coverage dispute over roof damage caused by a storm.