Mealey's Insurance Insolvency

  • July 23, 2026

    In Another PRT Appeal, DOL Again Urges Reversal Of Standing Finding

    NEW YORK — Making the same key arguments it did in January in a similar interlocutory appeal, the U.S. Department of Labor (DOL) filed an amicus curiae brief urging the Second Circuit U.S. Court of Appeals to reverse a ruling that retirees had standing to file a putative class lawsuit that is part of a much-watched string of pension risk transfer (PRT) challenges; among other things, the retirees generally allege that the use of offshore captive reinsurers makes the insurers now responsible for paying their annuities more likely to fall short of their obligations.

  • July 23, 2026

    Judge: Statute Of Limitations Bars Assignee’s Recovery Of Asbestos Losses

    NEW YORK — A New York federal magistrate judge granted summary judgment in favor of a U.K.-based reinsurer after determining that the statute of limitations on an assignee’s reinsurance billing claims began in October 2001 when the reinsurer sent a letter denying the validity of the claims, rendering the assignee’s September 2023 demand for $403,748.42 time-barred.

  • July 23, 2026

    Judgment Granted For Maker, Supplier In Defect Suit Referencing Insolvent Insurer

    PHILADELPHIA — A Pennsylvania federal judge granted summary judgment for a window manufacturer and a materials supplier but denied summary judgment for a drywall company and an insulation company, resolving third-party claims in a breach of contract suit over a home with alleged construction defects, finding that there was a lack of evidence showing that the windows caused water infiltration.

  • July 23, 2026

    Insureds Seek Judgment, Bad Faith Penalties Against LIGA In Hurricane Damage Row

    BATON ROUGE, La. — Insured homeowners filed a motion for partial summary judgment in a Louisiana federal court in a Hurricane Ida coverage dispute with the Louisiana Insurance Guaranty Association (LIGA), asserting that “LIGA is subject to bad-faith penalties for its own post-insolvency claims-handling conduct.”

  • July 22, 2026

    Insured Urges Court To Deny Lender’s Dismissal Bid In Settlement Funds Dispute

    NEW ORLEANS — In an insured’s dispute with his lender over its alleged failure to endorse settlement checks as an additional payee in a hurricane coverage dispute involving a now-insolvent insurer, the insured on July 21 filed a brief in Louisiana federal court opposing the lender’s renewed motion to dismiss and request for reconsideration of a previous ruling in a putative class suit, asserting that the lender incorrectly maintains that the insured did not incur an injury.

  • July 21, 2026

    Split Panel Reverses Ruling Denying Judgment For LIGA In Hurricane Coverage Spat

    LAKE CHARLES, La. — A divided Louisiana appellate court granted a supervisory writ and reversed a lower court’s ruling denying summary judgment to the Louisiana Insurance Guaranty Association (LIGA) in a dispute over coverage for damage purportedly caused by two hurricanes, finding that the claims against LIGA were not covered claims because LIGA did not receive notice of the claims until after the claims bar deadline in the now-insolvent homeowners insurer’s liquidation order.

  • July 20, 2026

    Florida Panel Affirms Dismissal Of Breach Of Contract Suit Against FIGA

    WEST PALM BEACH, Fla. — In a one-page ruling, a Florida state appellate court affirmed a lower court’s dismissal of a breach of contract suit against the Florida Insurance Guaranty Association (FIGA) in a dispute over coverage for wind damage.

  • July 16, 2026

    4th Circuit Reverses Confirmation Of Dutch Arbitral Award To Insolvent Insurer

    RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals on July 14 reversed and remanded a lower court’s confirmation of a $166,797,838 arbitral award issued in favor of insolvency practitioners for a Dutch insurer in liquidation, finding that the petition was filed in the lower court after the statute of limitations expired under the Federal Arbitration Act but that the award is a foreign judgment enforceable on remand under North Carolina law.

  • July 16, 2026

    Panel Says FIGA Not Responsible For Pre-Insolvency Fees In Settlement Row

    LAKELAND, Fla. — A Florida appellate court reversed and remanded a lower court’s order enforcing a $45,000 settlement agreement entered into between insureds and their now-insolvent homeowners insurer in the insureds’ dispute with the Florida Insurance Guaranty Association (FIGA), finding that the portion allocated to pre-insolvency attorney fees must be excluded because the fees “do not result” from FIGA denying a statutorily covered claim.

  • July 15, 2026

    Judge Won’t Alter Ruling Dismissing PRT Challenge For Lack Of Standing

    ALBANY, N.Y. — Concluding that Thole v. U.S. Bank N.A. “precludes a finding of Article III standing absent a concrete injury regardless of the type of remedy sought,” a New York federal judge declined to alter or amend a September ruling in which he dismissed a putative class action challenging a pension risk transfer (PRT) under the Employee Retirement Income Security Act.

  • July 10, 2026

    Panel Reverses Ruling Making FIGA Pay Disputed Attorney Fees In Coverage Row

    WEST PALM BEACH, Fla. — A Florida appeals court reversed and remanded a lower court’s ruling enforcing a settlement agreement specifically as to the payment of $21,500 in attorney fees to a homeowner in a coverage dispute with the Florida Insurance Guaranty Association (FIGA) over damage to the homeowner’s property, allegedly caused by a tropical storm, finding that the insured homeowner failed to show that the settlement amount did not include attorney fees.

  • July 09, 2026

    Scottish Re Receiver Seeks Declaratory Relief On Insurer’s $63.3M Claim

    WILMINGTON, Del. — The receiver for Scottish Re (U.S.) Inc. (SRUS), a life reinsurer in liquidation, cross-moved in the Delaware Chancery Court for declaratory relief concerning an insurer’s asserted right to $63.3 million in trust funds, arguing that a trust agreement between SRUS and the insurer terminated in 2023 and left the funds as unencumbered assets of the liquidation estate.

  • July 08, 2026

    Appeals Court Won’t Refer Homeowner’s Attorney Fee Dispute With FIGA To Mediation

    DAYTONA BEACH, Fla. — A Florida appellate court on July 7 issued an order declining to refer to mediation the Florida Insurance Guaranty Association’s (FIGA) appeal of a lower court final judgment awarding $34,340 in attorney fees and $6,306.45 in costs in favor of a homeowner and against FIGA in a dispute over coverage for wind, water and hail damages, finding that the “appeal is not appropriate for mediation.”

  • July 07, 2026

    Judge: Lack Of Meaningful Comparators Dooms ERISA Suit Over Stable Value Fund

    MILWAUKEE — Concluding that a plaintiff who challenged the decision to keep an allegedly underperforming stable value fund (SVF) in a retirement plan failed to state his claims because the comparators he proposed were not “meaningful benchmarks,” a Wisconsin federal judge dismissed the putative class case with prejudice; among other things, the judge said that “the potential insolvency of one out of ten wrap providers is insufficient to render the Fidelty SVF an imprudent choice.”

  • July 07, 2026

    Panel Reverses Denial Of Exception Of Prescription In Hurricane Coverage Dispute

    GRETNA, La.  — A Louisiana appellate court reversed a lower court’s judgment overruling the defendants’ exception of prescription and remanded the case to the lower court in homeowners’ dispute with a demolition company that is related to remediation work connected to a hurricane claim involving the Louisiana Insurance Guaranty Association (LIGA), finding that the lower court “should apply the three-year prescriptive period applicable to open accounts” because the work authorization did not include a fixed price.

  • July 02, 2026

    La. Panel Affirms Judgment Requiring Reimbursement Of $247,928.35 To LIGA

    LAKE CHARLES, La. — In cases consolidated on appeal, a Louisiana appellate court affirmed a workers’ compensation judge’s judgment in favor of the Louisiana Insurance Guaranty Association (LIGA) that awarded $247,928.35 in reimbursement against the borrowing employer of a travel nurse claiming workers’ compensation benefits for an injury at the borrowing employer’s hospital, finding that the hospital, which is self-insured, is “ultimately responsible for paying the claim” and that LIGA, “the payor of last resort, is entitled to full reimbursement” from the self-insured hospital.

  • July 01, 2026

    Insurer Seeks Access To $63.3M Trust Funds In Scottish Re Liquidation

    WILMINGTON, Del. — A life and health insurer moved in the Delaware Chancery Court for an order lifting portions of an injunction entered in the liquidation of Scottish Re (U.S.) Inc. (SRUS), seeking access to $63,381,936 held in a trust that the insurer says secures undisputed, unpaid claims owed by SRUS, which was placed into rehabilitation in March 2019.

  • June 24, 2026

    Homeowners Seek Information From FIGA Experts In Hurricane Coverage Dispute

    SARASOTA, Fla. — In a Florida state court breach of contract suit over purported damage caused by Hurricane Ian, homeowners on June 23 filed an expert request for production to the Florida Insurance Guaranty Association (FIGA), seeking, among other things, documents and reports reviewed by FIGA expert witnesses.

  • June 23, 2026

    Dismissal Denied In Hurricane Coverage Row With LIGA After Insurer’s Insolvency

    NEW ORLEANS — A Louisiana federal judge denied the Louisiana Insurance Guaranty Association’s (LIGA’s) motion to dismiss a bad faith, breach of contract and negligent claims adjusting suit filed by a homeowner alleging that his now-insolvent homeowners insurer failed to pay for damages caused by Hurricane Zeta, finding that because the homeowner filed suit against the insurer within two years of the loss, which interrupted the prescriptive period as to LIGA, the suit was timely filed.

  • June 23, 2026

    Panel Affirms Contents Loss Award Exceeding $99K In Hurricane Ida Coverage Dispute

    BATON ROUGE, La. — A Louisiana appellate court affirmed a lower court’s award of more than $99,000 for personal property loss in a dispute between homeowners and the Louisiana Insurance Guaranty Association (LIGA) over coverage related to Hurricane Ida, finding that the lower court’s personal property loss award “is reasonably supported by the record.”

  • June 22, 2026

    Guaranty Association Granted Leave To Intervene In Hurricane Ida Coverage Row

    NEW ORLEANS — A Louisiana federal judge granted in part the Louisiana Insurance Guaranty Association’s (LIGA) motion for leave to intervene and to dismiss in a hurricane coverage dispute between homeowners and their now-insolvent homeowners insurer, finding that while LIGA established that it had a statutory right to intervene, the request for dismissal was denied for lack of subject matter jurisdiction because the homeowners and LIGA are all citizens of Louisiana, which destroys complete diversity.

  • June 22, 2026

    Florida Panel: Court Erred In Ordering FIGA To Pay $10,507 To Insureds’ Attorneys

    WEST PALM BEACH, Fla. — A Florida appellate court panel held that a lower court erred in mandating the Florida Insurance Guaranty Association to pay $10,507.90 to insureds’ law firm as part of a settlement between the insureds and their insolvent insurer in a Hurricane Irma coverage dispute, reversing the lower court’s decision.

  • June 17, 2026

    Mandamus Denied By 4th Circuit In Row Over Insurer’s Entitlement To Restitution

    RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals denied a petition for writ of mandamus filed by insolvency practitioners representing a bankrupt Dutch insurance company seeking to vacate a lower court’s preliminary restitution order and judgment regarding former insurance mogul Greg Lindberg, who was sentenced to a 12-year prison term in a money laundering conspiracy case related to his $2 billion scheme to defraud insurers and policyholders and for his conviction on retrial in a separate case for attempting to bribe the North Carolina insurance commissioner.

  • June 11, 2026

    Louisiana Panel Affirms Dismissal Of Hotel’s Hurricane Francine Coverage Dispute

    BATON ROUGE, La. — A Louisiana appeals panel held that an insurer of last resort has no duty to provide coverage for a hotel’s property damage caused by Hurricane Francine because the insured failed to timely pay the policy premium, affirming the lower court’s grant of summary judgment in favor of the insurer in the insured’s breach of contract and bad faith lawsuit.

  • June 10, 2026

    Annuitant Files Class Suit Against Investment Adviser Over ‘Risky’ Annuities

    SAN DIEGO — An annuitant filed a putative class action suit in California federal court claiming that an investment adviser profited from “risky” insurance and annuity products issued by The Phoenix Companies Inc., now known as PHL Variable Insurance Co., which is in rehabilitation, alleging that the adviser knew of the financial risk posed by the insurer but “chose to keep silent so it could hide its breaches of trust and failure to disclose while quietly pocketing and improperly retaining millions of dollars in upfront and trailer commissions, to the detriment of Plaintiff and Class Members.”