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Mealey's Insurance Insolvency

  • December 04, 2025

    Magistrate Lifts Stay In Debt Collection Suit Against Insurer In Liquidation

    NEW YORK — A New York federal magistrate judge lifted a stay in a suit against an insolvent insurer and multiple parties allegedly involved in a fraudulent debt collection practice resulting in a lien against a purported debtor’s property, finding that the insurer in liquidation and co-defendant process serving agency failed to show how a resolution of the related liquidation proceeding would result in judicial efficiencies.

  • December 04, 2025

    California High Court Declines Review Of Ruling That Upheld Rehabilitation Plan

    SAN FRANCISCO — The California Supreme Court denied a petition for review filed by an insurer after a lower appellate court upheld a nonconsensual rehabilitation plan for a workers’ compensation insurance carrier approved as part of conservation proceedings brought by California’s insurance regulator  to resolve dozens of reinsurance participation agreement (RPA) lawsuits.

  • December 03, 2025

    Discovery Inadequacy Prompts Partial Grant Of Motion To Compel In $250M Asset Suit

    WILMINGTON, Del. — The Delaware Chancery Court partially granted a motion to compel in a dispute over a complex asset-swap arrangement referred to as the “Agera transactions” that the plaintiffs allege resulted in the “dissipation of at least $250 million,” finding that the plaintiffs’ discovery responses, which include untimely and inadequate privilege logs, are deficient under Delaware law and warrant multiple waivers and compelled production.

  • December 03, 2025

    Panel: Guaranty Association Not Required To Pay Attorney Fees In Settlement Dispute

    WEST PALM BEACH, Fla. — A Florida appellate court reversed and remanded a lower court order enforcing a settlement agreement for $3,000 in attorney fees awarded to a water restoration company in an insurance coverage dispute with the Florida Insurance Guaranty Association (FIGA), finding that covered claims relate to losses under the policy but not attorney fees included in the settlement agreement with a now-insolvent homeowners insurer.

  • December 03, 2025

    Insurance Department’s Confirmation Of Excess Loss Payments Assessment Affirmed

    AUSTIN, Texas — A Texas appeals panel affirmed the state insurance department’s order confirming the assessment of excess loss payments that a member insurer must pay the state’s insurer of last resort for Hurricane Harvey damage, rejecting the member insurer’s argument that the members’ percentage of participation should be the catastrophe year and not the year of assessment.

  • December 02, 2025

    Delaware Chancery Court Approves Claims Procedure In Reinsurer Liquidation

    WILMINGTON, Del. — A Delaware Chancery Court vice chancellor approved the contested proposed claims procedures filed by the receiver for the liquidation of Scottish Re (U.S.) Inc., holding that the proposal does not constitute an abuse of discretion because the receiver identified statutory authority, articulated rationales consistent with the statute’s objectives and supported those rationales with evidence.

  • December 01, 2025

    PHL Rehabilitator Reports 6 Offers Are Under Consideration After Initial Bids

    WATERBURY, Conn. — The rehabilitator of PHL Variable Insurance Co. and its reinsurance subsidiaries told a Connecticut state court in a third accounting and status report that six bidders remain under consideration for offers to acquire or reinsure all or portions of the insurer’s business after an initial round of eight entities submitted preliminary offers.

  • November 26, 2025

    Judge Grants Stay In Breach Of Contract Class Suit Involving Insolvent Insurer

    GREENSBORO, N.C. — A North Carolina federal judge granted a motion for an extension of stay filed by parties in a consolidated putative class action suit asserting that a purported holding company for an insolvent insurer breached its contracts with insurance agents and agencies by failing to pay them commissions.

  • November 21, 2025

    Judge Grants Abstention In Insurance Dispute Involving Arbitration, $524M Judgment

    TAMPA, Fla. — A Florida federal judge on Nov. 20 granted a Puerto Rico insurer’s motion to abstain regarding the insurer’s request to dismiss a petition to compel arbitration filed by insurance mogul Greg Lindberg, the former owner of now-insolvent insurers, seeking to compel arbitration related to a dispute with the insurer involving a $524 million judgment pursuant to a personal guaranty for a reinsurance agreement.

  • November 21, 2025

    Parties Seek Stay In Breach Of Contract Class Suit Involving Insolvent Insurer

    GREENSBORO, N.C. — Parties in a consolidated putative class action filed a joint renewed motion for extension of stay in a suit asserting that a purported holding company for an insolvent insurer breached its contracts with insurance agents and agencies by failing to pay them commissions.

  • November 21, 2025

    Vice Chancellor Rules On Objections In Report Involving Insolvent Insurer

    WILMINGTON, Del. — A Delaware Chancery Court vice chancellor issued rulings on proof of claim objections to a claims recommendation report issued by the receiver of an insolvent insurer, denying or deeming moot most of the objections.

  • November 20, 2025

    Florida Panel Affirms Judgment For Insurer In Settlement Payment Dispute

    TALLAHASSEE, Fla.  — A Florida appellate court on Nov. 19 affirmed a lower court ruling granting judgment on the pleadings for an insurer in a putative class action over the alleged failure by Citizens Property Insurance Corp., which describes itself on its website as Florida’s “insurer of last resort,” to pay statutory interest with a settlement payment, finding that the insured failed to assert a breach of the settlement agreement.

  • November 20, 2025

    Summary Judgment Granted For Guaranty Association In Hurricane Coverage Dispute

    LAKE CHARLES, La. — A Louisiana federal judge granted summary judgment to the Louisiana Insurance Guaranty Association (LIGA) in an insurance coverage dispute related to purported damage to an insured’s property from Hurricanes Laura and Delta, finding that the insured failed to provide evidence to dispute LIGA’s assertion that there is no record of a claim filed with the insured’s now-insolvent property insurer.

  • November 20, 2025

    Judge Opens Door For 2nd Circuit To Weigh In On PRT Standing Split

    NEW YORK — The question of whether alleging that a pension risk transfer (PRT) increased the risk of not receiving full benefits gives retirees standing to challenge the transaction could be addressed by two U.S. circuit courts after a New York federal judge certified for interlocutory appeal her decision that the plaintiffs in one such putative class action have standing.

  • November 18, 2025

    Guaranty Association, Homeowner Seek Dismissal Of Hurricane Coverage Suit

    LAFAYETTE, La. — Advising a federal court in Louisiana that their dispute has been resolved, a homeowner and the Louisiana Insurance Guaranty Association (LIGA) filed a joint motion to dismiss a breach of contract suit related to coverage for damage purportedly caused by Hurricane Laura.

  • November 13, 2025

    Panel Affirms $62,900 Settlement Enforcement Orders In Insurance Coverage Dispute

    TALLAHASSEE, Fla. — In a per curiam opinion issued Nov. 12, a Florida appellate court affirmed lower court orders granting insureds’ motions to enforce a global settlement of $62,900 in a property insurance coverage dispute between the insureds and the Florida Insurance Guaranty Association (FIGA), finding that FIGA failed to preserve its arguments for appeal.

  • November 13, 2025

    Majority Refuses To Consider Insureds’ Plea To Review Hurricane Coverage Suit

    NEW ORLEANS — A majority of the Louisiana Supreme Court on Nov. 12 refused to consider insureds’ application for a supervisory writ seeking 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, ruling that the application was untimely.

  • November 10, 2025

    COMMENTARY: Uh-EUO: How Examinations Under Oath Impact Claims

    By Rachel E. Hudgins, Kevin V. Small and Charlotte E. Leszinske

  • November 10, 2025

    Texas Panel Affirms Ruling Denying Summary Judgment In Guaranty Act Dispute

    HOUSTON — In a case of first impression, a Texas appellate court affirmed a lower court ruling denying a motion for summary judgment filed by a woman sued by a county government over damage to its vehicle in an auto accident, finding that because the woman failed to show that the county was a “self-insurer” pursuant to the Texas Motor Vehicle Safety-Responsibility Act (Safety and Responsibility Act) and the Texas Property and Casualty Insurance Guaranty Act, the lower court did not err when denying the woman’s motion for summary judgment.

  • November 10, 2025

    La. Panel Reverses Denial Of Summary Judgment For LIGA In Hurricane Damage Dispute

    BATON ROUGE, La. — A Louisiana appellate court reversed a lower court ruling denying summary judgment to the Louisiana Insurance Guaranty Association (LIGA) in a Hurricane Ida coverage dispute with an insured whose property was insured by a now-insolvent insurer, finding that the insured failed to show the existence of issues of material fact and failed to file a proof of claim against the insolvent insurer before the required deadline.

  • November 10, 2025

    Guaranty Association Seeks Net Worth Of Company Insured By Now-Insolvent Insurer

    NASHVILLE, Tenn. — The Tennessee Insurance Guaranty Association (TIGA) filed a declaratory judgment complaint in a Tennessee state court, seeking a judicial determination regarding the net worth of a company formerly insured by a now-insolvent insurer, arguing that TIGA is statutorily entitled to recover money paid on behalf of an insured whose obligations were satisfied by TIGA’s payments and whose net worth exceeded $25 million at the end of the year before the insurer’s insolvency.

  • November 10, 2025

    Fla. Panel Affirms Order Requiring Guaranty Association To Honor $20K Settlement

    TAMPA, Fla. — Without explanation, a Florida appellate court affirmed a lower court order requiring the Florida Insurance Guaranty Association (FIGA) to honor a $20,000 settlement reached by a now-insolvent insurer and homeowners in an insurance coverage dispute.

  • November 06, 2025

    Stable Value Funds Are Focus Of ERISA Suits Over Alleged Imprudence

    Often echoing arguments seen in recent pension risk transfer litigation concerning reinsurance arrangements and the risk of insolvency, a firm representing at least six different plaintiffs in various federal jurisdictions filed putative class Employee Retirement Income Security Act cases challenging retirement plan use of certain guaranteed income funds (GIFs) and stable value funds (SVFs) that the plaintiffs claim no prudent fiduciary would have selected and retained.

  • November 04, 2025

    Attorneys Seek Payment Of Fees In Insurance Magnate Money Laundering Case

    CHARLOTTE, N.C. —  Legal counsel for insurance magnate Greg Lindberg filed motions and briefs in North Carolina federal court seeking court approval for payment of fees in a case in which 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.

  • October 30, 2025

    Judge Dismisses Claims In Asbestos Liability Suit Against Guaranty Association

    BATON ROUGE, La. — After parties filed a status report indicating a resolution of claims, a Louisiana federal judge dismissed claims against certain of the parties in an asbestos liability suit against individuals and multiple entities, including the Louisiana Guaranty Association (LIGA), alleging that a man’s workplace exposure to asbestos particles resulted in his lung disease and death.