Mealey's Insurance Insolvency : Mealey's : Legal News & Analysis

Mealey's Insurance Insolvency

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.
September 08, 2025
Fla. Panel Reverses, Finds ‘Triable Issue’ As To Loss In Homeowners Coverage Suit

MIAMI — A Florida appellate court reversed and remanded a trial court’s final judgment of $25,711.90 for Citizens Property Insurance Corp., which describes itself on its website as Florida’s “insurer of last resort,” after the trial court granted summary judgment for the insurer, finding that the record contains disputes of fact regarding whether the insureds met the burden to show that the cause of their loss is a “triable issue.”
September 04, 2025
Underwriting Association Dispute With Pennsylvania Governor Dismissed As Resolved

HARRISBURG, Pa. — Pursuant to a letter indicating a resolution, a Pennsylvania federal court issued a docket annotation dismissing a dispute over whether 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, is a public entity rather than a private one.
September 02, 2025
Panel Affirms Ruling Denying Attorney Fees Request In Dispute With Property Insurer

MIAMI — A Florida appellate court affirmed a lower court order denying attorney fees to a homeowner who previously obtained final judgment in her favor in a coverage dispute with her property insurer, Citizens Property Insurance Corp., which describes itself on its website as Florida’s “insurer of last resort,” citing case law affirming lower court orders where an appellant failed to appropriately raise issues before the trial court.
August 27, 2025
Homeowners Bid To Respond To Dismissal Motion Extended In Hurricane Coverage Row

BATON ROUGE, La. — In a docket-only order without explanation, a Louisiana federal judge granted homeowners’ motion to extend the time to file a response to a motion filed by an insurance carrier participating in the U.S. government’s National Flood Insurance Program (NFIP) seeking to dismiss the homeowners’ Hurricane Ida coverage suit against the carrier and the Louisiana Insurance Guaranty Association (LIGA).
August 25, 2025
Texas Panel Conditionally Grants Mandamus To Toss Fine In Auto Crash Coverage Row

EASTLAND, Texas — A Texas appellate court conditionally granted a petition for writ of mandamus filed by the Texas Property and Casualty Insurance Guaranty Association (TPCIGA) seeking to compel a lower court judge to withdraw a monetary sanction of $6,000 for the association’s purported failure to comply with lower court orders in an auto accident coverage dispute, finding that the lower court abused its discretion in imposing a sanction on the association over which the court lacks personal jurisdiction.
August 21, 2025
Notice Of Compensation Hearing Issued In Insurance Magnate Money Laundering Case

CHARLOTTE, N.C. — In a docket-only entry, a North Carolina federal court issued a notice advising of a hearing on a court-appointed special master’s motion seeking to approve compensation for him and his advisers 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.
August 21, 2025
Judge Grants ‘Mistitled’ Application In Insurer Receivership Payment Row

LAS VEGAS — A Nevada federal judge granted an ex parte application filed by the Nevada insurance commissioner as receiver of an insolvent insurer to extend the time to serve a summons on an individual defendant and to extend the time to serve certain corporate defendants in a declaratory judgment suit seeking payment for a judgment in an underlying case, finding the arguments in opposition to the “mistitled” motion regarding late service upon the individual defendant “unpersuasive.”
August 20, 2025
Insurer In Liquidation Seeks Stay Of Student Loan Debt Collection Suit

NEW YORK — An insurer in liquidation joined by a co-defendant process serving agency filed letter briefs in New York federal court seeking a permanent stay or dismissal of a suit filed against the insolvent insurer and multiple parties allegedly involved in a fraudulent debt collection practice resulting in a lien against the purported debtor’s property.
August 19, 2025
Insurer Seeks Reconsideration In Suit Over Forced Deal Involving Reinsurer

NEW YORK — An insurer argues in a New York federal court that reconsideration of dismissal of its federal securities law claims is warranted because the court overlooked laws and facts and disregarded allegations that misrepresentations and transactional conduct tied to the insurer’s compelled April 2024 purchase of the equity of reinsurer JRG Reinsurance Co. Ltd. occurred domestically.
August 18, 2025
Panel Says Homeowners Policy Does Not Cover Damages Related To Golf Cart Accident

NEW ORLEANS — A Louisiana appellate court affirmed a lower court order granting summary judgment to the Louisiana Insurance Guaranty Association (LIGA) in a dispute over coverage related to injuries sustained by a person allegedly struck by a golf cart, finding that a homeowners policy endorsement for the now-insolvent insurer for which LIGA intervened established that the policy did not provide coverage for the damages related to the golf cart accident.
August 15, 2025
Panel Affirms Settlement Enforcement Order In Row With Guaranty Association

LAKELAND, Fla. — Without explanation, a Florida appellate court affirmed a lower court’s order granting homeowners’ motion to enforce a $38,000 settlement agreement between a now-insolvent insurer and the homeowners in a dispute between the homeowners and the Florida Insurance Guaranty Association over coverage for damage resulting from a leaking roof.
August 12, 2025
Amici Support 4th Circuit Review Bid Re Standing Ruling In Lawsuit Over PRT

RICHMOND, Va. — A petition for permission to file an interlocutory appeal to the Fourth Circuit U.S. Court of Appeals regarding 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) is unopposed and has garnered two supporting briefs from amici curiae; among other things, the retirees allege that the use of offshore captive reinsurers makes annuity providers riskier.
August 11, 2025
Liquidated Reinsurer, Insurer Terminate Trust Agreement, Resolve Unpaid Claims

WILMINGTON, Del. — The Delaware Chancery Court approved a stipulation between the receiver for a stock reinsurance company and a life insurer, authorizing the liquidation of a trust account and the distribution of up to $8,562,944 to satisfy claims asserted under a reinsurance agreement.
August 08, 2025
Carrier Seeks Dismissal Of Hurricane Coverage Row Involving Guaranty Association

BATON ROUGE, La. — An insurance carrier participating in the U.S. government’s National Flood Insurance Program (NFIP) moved to dismiss a suit filed against it and the Louisiana Insurance Guaranty Association (LIGA) by homeowners seeking coverage for purported damage to their property caused by Hurricane Ida.
August 07, 2025
Judge Orders Remand Of Auto Coverage Dispute Involving Insurer In Rehabilitation

LAS VEGAS — Without explanation, a Nevada federal judge granted a joint stipulation by the parties to remand a breach of contract suit seeking damages related to an underlying jury verdict in a case involving a woman injured in an auto accident who sued another driver insured by a company now in rehabilitation.
August 06, 2025
Vesttoo-Related Fraud Actions Consolidated For Discovery, Pretrial Proceedings

NEW YORK — A New York federal judge ordered the consolidation of a third case similar to two other previously consolidated cases that involve alleged fraud tied to the collapse of nonparty Vesttoo Ltd., directing that discovery and pretrial proceedings be coordinated after the parties in the third case consented to consolidation and to deferring briefing schedules on pending motions to dismiss.
August 05, 2025
Parties Ordered To Submit Briefing Schedule In SEC Fraud Row With Insurance Mogul

WINSTON-SALEM, N.C. — After reviewing the U.S. Securities and Exchange Commission’s status report, a North Carolina federal judge on Aug. 4 issued a docket-only order advising the parties to submit a briefing schedule within 10 business days of insurance mogul Greg Lindberg or a co-defendant being sentenced in related criminal proceedings to the SEC’s suit alleging that Lindberg, his advisory services company and its former executive defrauded clients of more than $75 million.
August 01, 2025
Guaranty Association Seeks To Compel Discovery In Coverage Row With Homeowner

FORT LAUDERDALE, Fla. — The Florida Insurance Guaranty Association (FIGA), which was substituted as a defendant for a now-insolvent insurer, moved to compel discovery of a homeowner in her suit alleging that the insurer failure to adequately compensate her for purported damage to her home.