Mealey's Insurance Insolvency

  • February 15, 2024

    Disputes Over Liquidation Proposal Sent To Mediation In Vesttoo Chapter 11 Cases

    WILMINGTON, Del. — A Delaware federal bankruptcy judge has referred matters pertaining to a proposed Chapter 11 plan of liquidation for Vesttoo Ltd. and dozens of its affiliates to mediation.

  • February 14, 2024

    Consent Decree Entered Under 1 Dismissal In Case Over Alleged Counterfeit Policies

    LOUISVILLE, Ky. — A variety of claims and parties have been dismissed under agreements in a sprawling suit over allegations of fraud, trademark counterfeiting and trademark infringement involving captive reinsurance programs, with a Kentucky federal court permanently enjoining two defendants “from future infringement of Plaintiffs’ trademarks.”

  • February 14, 2024

    Claims Against LIGA Tossed In Asbestos Coverage Suit Involving Insolvent Insurer

    NEW ORLEANS — A Louisiana federal judge granted summary judgment to the Louisiana Insurance Guaranty Association (LIGA) and dismissed an asbestos liability suit against it, finding that the claims for asbestos-related lung cancer against LIGA, as the statutory obligor for a now-insolvent insurer, are not covered claims.

  • February 12, 2024

    Condo Association Says It Settled Hurricane Coverage Row With Guaranty Association

    SANFORD, Fla. — A condominium association notified a Florida state court of its settlement with the Florida Insurance Guaranty Association (FIGA), the receiver for the now-insolvent commercial property insurer that the condo association sued seeking coverage for damage caused by Hurricane Irma.

  • February 08, 2024

    Dismissal Granted In Asbestos Liability Case Involving Guaranty Association

    NEW ORLEANS — A Louisiana federal judge on Feb. 7 granted a motion for voluntary dismissal of a man’s claim that he was exposed to asbestos through contact with a specific worker at a shipyard but keeping other claims regarding exposure against the shipyard, related parties, multiple insurers and the Louisiana Insurance Guaranty Association (LIGA).

  • February 06, 2024

    Hail Damage Suit Against Guaranty Association Tossed For Lack Of Jurisdiction

    BATON ROUGE, La.  — A Louisiana federal judge dismissed a breach of contract and bad faith suit regarding failure to compensate a homeowner for hailstorm damage against a now-insolvent insurer and the Louisiana Insurance Guaranty Association (LIGA), finding that the court lacks subject matter jurisdiction because both LIGA and the homeowner are citizens of Louisiana.

  • February 01, 2024

    Accounting Denied As To Disputed $185 Million Attorney Fees In Insurers’ ACA Row

    WASHINGTON, D.C. — A U.S. Court of Federal Claims judge denied in part objecting class members’ motion for an accounting of a vacated $185 million attorney fee award in suits filed by insurers, some of which are insolvent, over risk-corridor payments under the Patient Protection and Affordable Care Act (ACA), finding that because the court has not yet considered a renewed fee request, the accounting is unnecessary at this time.

  • February 01, 2024

    Federal Judge Tosses Hurricane Coverage Case After Suspending Homeowner’s Counsel

    LAFAYETTE, La. — A Louisiana federal judge adopted a magistrate judge’s report and recommendation to dismiss for failure to prosecute after a homeowner failed to attend a status conference in her hurricane coverage suit against her now-insolvent insurer following the judge’s termination of her legal counsel.

  • February 01, 2024

    Late Objection Bid Draws Opposition In Vesttoo Chapter 11 Cases

    WILMINGTON, Del. — Asserting that “Vesttoo’s defrauded creditors have overwhelmingly voted to accept” a Chapter 11 plan of liquidation for Vesttoo Ltd. and dozens of its affiliates, two creditors are among the entities urging a Delaware federal bankruptcy court to reject a motion to allow an untimely objection to claims against one of the affiliates.

  • January 31, 2024

    4th Circuit Hears $524M Guaranty Case Involving Reinsurance Agreement

    RICHMOND, Va. — In oral argument before a Fourth Circuit U.S. Court of Appeals panel, the issuer of a guaranty contended that a judgment against him enforcing an arbitration award for $524 million plus interest should be overturned, and a Puerto Rico-based insurer countered that the terms of the agreements in question and res judicata both support affirmation.

  • January 30, 2024

    Vice Chancellor Mostly Denies Dismissal In Suit Over Asset Dissipation

    WILMINGTON, Del. — Ruling on four long-pending motions in a suit over a complex asset-swap transaction that the plaintiffs argue resulted in the “dissipation of at least $250 million,” a Delaware vice chancellor granted dismissal only as to a claim of fraudulent trading under Cayman Islands law.

  • January 25, 2024

    Plaintiffs Make Class Certification Arguments In DUFTA Row Involving Insurer

    WILMINGTON, Del. — Asserting that their Delaware Uniform Fraudulent Transfer Act (DUFTA) claims “focus exclusively on Defendants’ conduct and circumstances,” policyholders and agents challenging an alleged scheme to strip capital from an insurance subsidiary on which more than 1 million policyholders depend for long-term care (LTC) disability benefits urged the Delaware Chancery Court to certify their proposed class.

  • January 25, 2024

    Vesttoo Bankruptcy Debtors: Proceeding In Israel Would Be More Efficient

    WILMINGTON, Del. — A variety of objections have been lodged in Delaware federal bankruptcy court regarding the Official Committee of Unsecured Creditors’ Chapter 11 plan of liquidation for Vesttoo Ltd. and 48 affiliates, including one in which the debtors argue that the cases should be dismissed “so that more efficient insolvency proceedings can be filed in Israel.”

  • January 23, 2024

    Dismissal Stipulated In Asbestos Coverage Dispute Involving Guaranty Association

    COLUMBIA, S.C. — Remaining defendant insurers stipulated to dismissal in a South Carolina federal court of cross-claims by or against two defendant insurers that were previously dismissed from a receiver’s asbestos coverage suit against insurers and the South Carolina Property and Casualty Insurance Guaranty Association.

  • January 23, 2024

    Magistrate Extends Discovery Deadline In Rehabilitator’s Suit Against D&O Insurers

    INDIANAPOLIS — An Indiana federal magistrate judge granted parties’ joint motion to extend a discovery deadline in a breach of contract suit filed by the Pennsylvania insurance commissioner, as rehabilitator of an insurer, against primary and excess directors and officers (D&O) insurers.

  • January 23, 2024

    Homeowner Sues Insurer, Guaranty Association, Seeks Coverage For Hurricane Damage

    JACKSONVILLE, Fla. — A Florida homeowner sued his now-insolvent insurer and the Florida Insurance Guaranty Association (FIGA) in a Florida state court, asserting claims for breach of contract and violations of Florida law for failure to adequately cover purported losses related to Hurricane Ian.

  • January 23, 2024

    Judge OKs Adding Guaranty Association In Bad Faith Suit Against Insolvent Insurer

    NEW ORLEANS — A Louisiana federal judge granted a homeowner’s motion to file an amended complaint to add as a defendant the Louisiana Insurance Guaranty Association (LIGA) in a breach of contract and bad faith suit against a now-insolvent homeowners insurer over its purported failure to adequately cover damage caused by Hurricane Ida, finding that amending the complaint is necessary due to the insurer’s insolvency and that the case must be remanded because complete diversity is destroyed.

  • January 22, 2024

    Insolvent Insurers’ Owner Opposes Injunction After Ordered To Pay $576M Judgment

    GREENSBORO, N.C. — The owner of insolvent insurers filed a brief in a North Carolina federal court, opposing an insurer’s motion for an injunction to prevent the owner from transferring assets after a North Carolina federal judge issued a judgment requiring the owner to pay more than $576 million pursuant to a personal guaranty for a reinsurance agreement.

  • January 22, 2024

    Bad Faith Claim Against Guaranty Association Dismissed In Hurricane Coverage Row

    NEW ORLEANS — A Louisiana federal judge granted partial dismissal to the Louisiana Insurance Guaranty Association (LIGA), which was substituted for an insolvent homeowners insurer, in a breach of contract suit over damages from Hurricane Ida, finding that the claims for bad faith, mental anguish, penalties, pre-insolvency costs and interest must be dismissed because they are not covered claims for which “LIGA is the statutory successor.”

  • January 19, 2024

    Dismissal Denied In Suit Against Life Insurer Regarding ‘Leapfrogging’ Policy

    CINCINNATI — An Ohio federal judge denied dismissal of a breach of contract suit filed against a life insurer by the liquidating trustee for a viatical settlement provider, finding that the complaint was timely filed because Ohio law applies to the dispute over a “leapfrogging” life insurance policy that was sold to the trust.

  • January 18, 2024

    Committee Seeks To Bar Some Claimants In Vesttoo Cases From Liquidation Vote

    WILMINGTON, Del. — The Official Committee of Unsecured Creditors on Jan. 17 asked a Delaware federal bankruptcy court to reclassify 49 disputed claims so the joint provisional liquidators (JPLs) that submitted them can’t vote on the committee’s Chapter 11 plan of liquidation for Vesttoo Ltd. and 48 affiliates.

  • January 17, 2024

    Parties Stipulate To Dismissal In Defense Costs Row Involving Liquidation

    NEW CASTLE, Del. — All claims and counterclaims in a defense costs dispute in the Delaware Superior Court that centers on whether reinsurer Alpha Re’s 2018 liquidation triggered an exclusion have been dismissed without prejudice under a stipulation in which the parties reported entering into an unspecified “Tolling & Standstill Agreement.”

  • January 17, 2024

    Extension Granted In N.C. High Court Review Of Judgment Against Insolvent Insurers

    RALEIGH, N.C. — The North Carolina Supreme Court granted a one-day extension to the purchaser of now-insolvent insurers and his affiliated companies to respond to a motion for clarification of the high court’s order granting a petition for supersedeas regarding an appellate court’s decision affirming a judgment for fraud.

  • January 16, 2024

    Class Certification Sought In DUFTA Suit Concerning Long-Term Care Insurer

    WILMINGTON, Del. — Policyholders who filed a Delaware Uniform Fraudulent Transfer Act (DUFTA) suit over what they allege were fraudulent transfers from an insurance subsidiary on which more than 1 million policyholders depend for long-term care (LTC) disability benefits filed a motion on Jan. 12 in Delaware Chancery court for class certification.

  • January 11, 2024

    Insurer Seeks N.C. High Court Review In Row Involving Insolvent Insurers’ Owner

    RALEIGH, N.C.  — A Puerto Rico-based insurer petitioned the North Carolina Supreme Court to review an appeals court decision that vacated a lower court injunction enjoining the owner of insolvent insurers from withdrawing without the North Carolina Insurance commissioner’s consent more than $5,000 from any entity controlled by the owner in an enforcement action for a $524 million judgment, arguing that the appellate court decision is contrary to Supreme Court precedent.

Can't find the article you're looking for? Click here to search the Mealey's Insurance Insolvency archive.