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Mealey's Insurance Insolvency

  • 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.

  • July 31, 2025

    Class Certification Sought In RICO Suit Against 'Insolvent' Health Sharing Ministry

    AKRON, Ohio — Plaintiff members alleging insolvency of a health care sharing ministry sued Liberty HealthShare Inc. filed a motion for class certification in an Ohio federal court in their suit against Liberty and former CEOs/directors seeking a declaration that the health plans “were and are illegal contracts” and a ruling that the “CEOs or directors were personally liable upon finding Liberty an unauthorized and insolvent insurer pursuant to Va. Code Ann. § 38.2-215 [Virginia Code Annotated Section 38.2-215].”

  • July 31, 2025

    Commissioner’s Extension Bid Granted To Appeal Order Denying Remand In ACA Row

    DENVER — In a docket-only order without explanation, a Colorado federal judge granted the Colorado insurance commissioner’s motion for a 30-day extension to file a notice of appeal of the judge’s order denying the commissioner’s motion to remand and granting the U.S. government’s motion to set aside a state court order to disburse funds in a suit involving an insolvent insurer and risk adjustment charges under the Patient Protection and Affordable Care Act (ACA) regarding whether Colorado law is preempted by the ACA and Federal Priority Statute.

  • 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.