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Mealey's Insurance Insolvency

  • July 24, 2025

    California Court OKs Publishing Ruling Re Rehab Plan For Workers’ Comp Insurer

    SAN FRANCISCO — The First District California Court of Appeal on July 23 granted a request for publication of an initially unpublished opinion upholding a nonconsensual rehabilitation plan for a workers’ compensation insurance carrier; the plan was approved as part of conservation proceedings brought by California’s insurance regulator and includes options to resolve dozens of reinsurance participation agreement (RPA) lawsuits.

  • July 24, 2025

    Homeowners Sue Florida Insurance Guaranty Association Over Hurricane Ian Damage

    SARASOTA, Fla.  — Florida homeowners filed a breach of contract suit in Florida state court against the Florida Insurance Guaranty Association (FIGA), asserting that it has assumed the liability for the claim they made to their now-insolvent homeowners insurer, which they allege failed to compensate them for losses related to purported damage to their home by Hurricane Ian.

  • July 23, 2025

    Washington State Director Memo Estimates $1 Billion Deficit In Liability Account

    OLYMPIA, Wash. — The director of the Washington state Office of Financial Management issued a memo authorizing a temporary cash deficiency in the state’s liability account, an account that according to the office’s website has the purpose “to pay legal liabilities of the state resulting from tortious conduct, promote risk control through a cost allocation system which recognizes agency loss experience, levels of self-retention, and levels of risk exposure and establish an actuarially sound system to pay incurred losses, within defined limits.”

  • July 23, 2025

    Judge Orders Disposition Of Proceeds In Insurance Magnate Money Laundering Case

    CHARLOTTE, N.C. — A North Carolina federal judge on July 22 approved a consent motion filed by a court-appointed special master to dispose of the proceeds from the sale of Irish software companies in a case in which insurance magnate Greg Lindberg 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.

  • July 23, 2025

    Federal Judge Dismisses Purchaser’s Suit Over Forced Deal Involving Reinsurer

    NEW YORK — Finding in part that a claim asserted under the Securities Exchange Act “may be domestic but is so predominantly foreign as to be extraterritorial,” a New York federal judge dismissed federal securities claims with prejudice and declined to exercise supplemental jurisdiction over state fraud and breach of contract claims in an insurer’s suit over its forced April 2024 purchase of the equity of reinsurer JRG Reinsurance Co. Ltd.

  • July 22, 2025

    Panel Affirms Ruling Denying Attorney Fees To Guaranty Fund In Coverage Row

    CHICAGO — An Illinois appellate court affirmed a lower court’s ruling denying a motion for attorney fees and costs filed by the Illinois Insurance Guaranty Fund in a workers’ compensation coverage dispute, agreeing with the lower court’s ruling because neither state law nor the insurance policy provides for awarding attorney fees or costs in this action seeking a declaration of coverage.

  • July 22, 2025

    Federal Judge Transfers Bad Faith Suit Against Insolvent Insurer To State Court

    LAS VEGAS — A Nevada federal judge granted an insolvent insurer’s motion to transfer a bad faith insurance suit against it by a person claiming that she was injured in an auto accident with the driver of a vehicle insured by the insolvent insurer, finding good cause to grant the transfer to a Kansas state court upon the state court entering a judgment of liquidation and finding of insolvency as to the insurer.

  • July 21, 2025

    Florida Panel Affirms Judgment For Now-Insolvent Insurer In Breach Of Contract Row

    WEST PALM BEACH, Fla. — Without providing explanation, a Florida appellate court affirmed a lower court’s grant of summary judgment for a now-insolvent insurer in homeowners’ breach of contract suit against the insurer alleging that it failed to adequately cover the costs of water damage to the insureds’ home.

  • July 17, 2025

    Homeowner Files Dismissal Notice In Water Damage Row With Guaranty Association

    FORT LAUDERDALE, Fla. —  A homeowner who sued the Florida Insurance Guaranty Association (FIGA) as the purported statutory guarantor for his now-insolvent homeowners insurer, United Property & Casualty Insurance Co., filed a notice of voluntary dismissal in a Florida state court regarding his breach of contract suit over purported water damage to his home.

  • July 16, 2025

    Settlement Approved Between Receiver Of Liquidated Reinsurer And Long-Serving TPA

    WILMINGTON, Del. — The Delaware Chancery Court approved a settlement between the receiver for life and health reinsurer Scottish Re (U.S.) Inc. (SRUS) and its third-party administrator (TPA), which had sought to terminate its service agreement with SRUS.  Under the settlement, the parties agree to terminate the disputed administrative services agreement (ASA), and SRUS will waive claims centered on reimbursement disagreements.

  • July 15, 2025

    Summary Judgment Motions Granted For Insurer, Shipbuilder In Asbestos Coverage Row

    NEW ORLEANS — A Louisiana federal judge granted separate motions filed by a former shipbuilder and by the purported insurer for the shipbuilder’s prior executive officers seeking summary judgment in a mesothelioma patient’s asbestos liability suit against numerous parties, including a now-insolvent insurer, finding that the unopposed motions and the record establish “that there is no genuine issue as to any material fact.”

  • July 11, 2025

    Judge Tosses Police Chase Personal Injury Suit Against Guaranty Association

    NEWARK, N.J. — A New Jersey federal judge dismissed with prejudice a suit against the New Jersey Property-Liability Insurance Guaranty Association (NJPLIGA) and other parties filed by a pedestrian who claims that she was hit and injured as a result of a police chase that allegedly violated “all standard . . . procedures.”

  • July 09, 2025

    Split Panel Affirms Dismissal Of Water Damage Suit Against Insolvent Insurer

    DAYTONA BEACH, Fla. — A split Florida state appellate court panel affirmed a lower court’s dismissal of a homeowners’ breach of contract suit against her now-insolvent homeowners insurer, finding that the homeowner cannot prevail in her assertion that the lower court erred in looking at a presuit notice that was not included in the complaint when her argument against dismissal referenced the notice and her compliance with its statutory requirements.

  • July 03, 2025

    Set Aside Motion Granted In Case ‘Of First Impression’ Involving Insolvent Insurer

    DENVER — In a matter “of first impression,” involving an insolvent insurer and risk adjustment charges under the Patient Protection and Affordable Care Act (ACA) regarding whether Colorado law is preempted by federal statutes, a Colorado federal judge denied the Colorado insurance commissioner’s motion to remand the case to state court and granted the U.S. government’s motion to set aside an order granting the commissioner’s motion to disburse funds, finding that Colorado law is preempted by the ACA and the Federal Priority Statute.

  • July 01, 2025

    California Appellate Court Lets Rehab Plan For Workers’ Comp Insurer Stand

    SAN FRANCISCO — In an unpublished opinion, the First District California Court of Appeal upheld a nonconsensual rehabilitation plan for a workers’ compensation insurance carrier; the plan was approved as part of conservation proceedings brought by California’s insurance regulator and includes options to resolve dozens of reinsurance participation agreement (RPA) lawsuits.

  • June 27, 2025

    California Judge Denies Insured’s Motion For Summary Adjudication As To UCL Claim

    LOS ANGELES — A California judge granted an insured’s motion for summary adjudication as to his declaratory relief claim in a lawsuit alleging that the California Fair Plan Association (CFP) issued property insurance policies with fire coverage that is unlawfully restrictive as to smoke damage claims but denied the insured’s motion as to his unfair competition law (UCL) claim, finding that he failed to satisfy his burden to establish standing to bring the UCL claim.

  • June 26, 2025

    U.S. High Court Denies Cert In Pennsylvania Underwriting Association Dispute

    WASHINGTON, D.C. — The U.S. Supreme Court denied a petition for a writ of certiorari filed by the state-created Pennsylvania Professional Liability Joint Underwriting Association (JUA), which provides insurance to health care providers, including those previously insured by insurers in liquidation, seeking review of a Third Circuit U.S. Court of Appeals holding that the JUA does 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.

  • June 24, 2025

    COMMENTARY: The Receiver Of An Insolvent Insurer “Stands in the Shoes” Of The Ceding Insurer When Pursuing Recoveries Against Reinsurers

    By Debra J. Hall and Robert M. Hall

  • June 19, 2025

    Examining Jurisdiction Sua Sponte, Judge Tosses Water Damage Coverage Dispute

    NEW ORLEANS — In a subject matter jurisdiction sua sponte review, a Louisiana federal judge dismissed a water damage coverage dispute between homeowners and a roofing company, finding that “this case must be dismissed in its entirety” due to a previous dismissal order for lack of subject matter jurisdiction upon a now-insolvent insurer’s dismissal from the suit.

  • June 18, 2025

    N.M. Panel: Policy Term ‘For A Security Breach’ Is Ambiguous; Coverage Triggered

    ALBUQUERQUE, N.M. — A New Mexico appeals court affirmed a lower court’s summary judgment ruling that a cyber insurance policy covered an underlying third-party claim seeking payment for invoices that a now insolvent health insurer mistakenly wired to a fraudulent bank account, finding that the policy term “for a security breach” is ambiguous and must be construed in favor of the insured and the “loss of money” policy exclusions do not apply.

  • June 16, 2025

    Florida Panel Reverses Judgment For Homeowner In Row Over Fire Damage Coverage

    DAYTONA BEACH, Fla. — A Florida appellate court on June 13 reversed and remanded a lower court’s ruling granting summary judgment to a homeowner in her dispute with the Florida Insurance Guaranty Association (FIGA) over coverage for fire damage, finding that material issues of fact remain regarding whether the homeowner’s husband, another insured under the policy, violated a policy provision regarding fraud.

  • June 13, 2025

    Federal Judge Rules On 8 Motions In Coverage Row Involving Insolvent Insurer

    OMAHA, Neb. — A Nebraska federal judge ruled that adherence to New York law precludes a reinsurer’s breach of warranty defense in National Indemnity Co.’s (NICO) suit to enforce its reinsurers’ obligations for incurred liabilities related to asbestos exposure; the judge also resolved seven additional motions pertaining to claims for novation and various coverage disputes, among others.

  • June 13, 2025

    Split Louisiana Panel Reverses Judgment For Insurer In Asbestos Liability Dispute

    NEW ORLEANS — A split Louisiana appellate court reversed and remanded a lower court’s ruling granting summary judgment to an insurer and to the Louisiana Insurance Guaranty Association (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, finding that issues of fact remain regarding the failure of the insurer and LIGA to show the applicability of a certain policy exclusion to bar coverage.

  • June 12, 2025

    Judge Grants Motion To Close Receivership In Dispute With Insurer In Liquidation

    LOS ANGELES — A California state judge issued a minute order granting a motion filed by a rehabilitation facility’s receiver to approve a final accounting and close the facility’s receivership in a suit against the facility and related parties by a now-insolvent insurer for the facility’s alleged default on its debt to the insurer, finding the receiver’s requests “reasonable.”

  • June 12, 2025

    Receiver Of Liquidated Reinsurer Seeks Settlement With Long-Serving TPA

    WILMINGTON, Del. — The receiver for the liquidation of life and health reinsurer Scottish Re (U.S.) Inc. (SRUS) asked the Delaware Chancery Court to approve a settlement resolving a dispute with its third-party administrator (TPA), which had sought to terminate its service agreement with SRUS.