Mealey's Insurance Insolvency
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October 30, 2024
Court Gets Updates On Objections To Proposals In Reinsurer’s Liquidation
WILMINGTON, Del. — Delaware Chancery Court has been updated on the status of disputes over four proof of claim (POC) procedures the receiver for life and health reinsurer Scottish Re (U.S.) Inc. (SRUS) proposed for its liquidation, with the receiver filing an acknowledgement “that clarifies and should resolve several aspects which prompted objections” and certain cedents and retrocessionaires listing issues that they say “remain unresolved.”
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October 24, 2024
$92M Attorney Fee Award Entered In ACA Row Between Health Insurers And Government
WASHINGTON, D.C. — Pursuant to the opinion and order issued by a U.S. Court of Federal Claims judge granting class counsel’s renewed motions for approval of attorney fee requests, the clerk of court entered a judgment of $92,424,335.84 to class counsel in a risk-corridor payment dispute under the Patient Protection and Affordable Care Act (ACA) that is related to a similar suit involving insurers in liquidation also seeking compensation under the ACA.
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October 24, 2024
Homeowner Sues Guaranty Association Over Not Covering Loss For Windstorm Damage
BARTOW, Fla. — A homeowner whose home was purportedly insured by a now-insolvent insurer sued the Florida Insurance Guaranty Association (FIGA) in Florida state court, asserting that FIGA, as the alleged statutory obligor for the insurer, breached its obligations under state law by failing to adequately compensate the insured for his loss related to windstorm damage.
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October 23, 2024
Extension Again Granted In $1B RICO Insurance Fraud Scheme Involving Mogul
RALEIGH, N.C. — Without explanation, a North Carolina federal judge granted defendants’ third motion for an extension to answer an amended complaint in a suit accusing them of Racketeer Influenced and Corrupt Organizations Act (RICO) violations related to their purported participation in a $1 billion scheme to defraud now-insolvent insurers once owned by former insurance mogul Greg Lindberg.
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October 23, 2024
$21K Bill Of Costs Filed In Case With $576M Judgment Against Insurance Magnate
GREENSBORO, N.C. — Life insurer Universal Life Insurance Co. (ULICO) filed a $21,963.01 bill of costs in a North Carolina federal court in a suit with a judgment requiring insurance magnate Greg Lindberg, former owner of now-insolvent insurers, to pay more than $576 million pursuant to a personal guaranty for a reinsurance agreement.
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October 22, 2024
Judge Remands Hurricane Damage Dispute Involving Insurer, Guaranty Association
BATON ROUGE, La. — “[F]or the reasons set forth” in a Louisiana federal magistrate judge’s report and recommendation to remand to state court a hurricane coverage dispute between a homeowner and his now-insolvent insurer, a Louisiana federal judge remanded the case “for lack of subject matter jurisdiction” after the magistrate judge granted the insured’s motion to amend his complaint to add the Louisiana Insurance Guaranty Association (LIGA) as a defendant.
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October 22, 2024
Motion To Substitute Guaranty Association Denied In Row Over Hurricane Coverage
LAFAYETTE, La. — A Louisiana federal magistrate judge denied an insured’s motion to substitute the Louisiana Insurance Guaranty Association (LIGA) for a now-insolvent insurer in a dispute over coverage for purported damages caused by Hurricanes Laura and Delta, finding that even if the court determined that it had subject matter jurisdiction over LIGA through a transfer of interest from the insurer to LIGA, the state of Louisiana’s interest in regulating insurance provides a sufficient reason for abstention.
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October 16, 2024
Summary Judgment Granted For Guaranty Association In Asbestos Coverage Dispute
NEW ORLEANS — A Louisiana federal judge granted summary judgment to the Louisiana Insurance Guaranty Association (LIGA), the purported statutory obligor for insurance policies issued by a now-insolvent insurer of the defendants sued by a now-deceased man alleging that workplace exposure to asbestos caused his mesothelioma, finding that the wrongful death claims filed by the man’s wife and two daughters are barred by the insurance liquidator’s deadline to file claims.
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October 16, 2024
Dismissal Stipulated To In Breach Of Contract Suit Against Wealth Management Firm
RALEIGH, N.C. — Without providing an explanation, the parties in a breach of contract suit filed in North Carolina federal court by a now-insolvent insurer against a wealth management company alleged to have violated a loan agreement stipulated to dismissal of the company’s counterclaims.
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October 16, 2024
Insurer And Investment Firm Stipulate To Dismissal In Breach Of Contract Suit
RALEIGH, N.C. — An insurer in rehabilitation and the Malta-based investment firm its sued for breach of contract related to the firm’s purported failure to make payments on a loan filed a stipulation of dismissal in North Carolina federal court regarding the firm’s counterclaims.
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October 10, 2024
California Bishop Amends Complaint, Seeks Insurance Coverage For Sex Abuse Suits
SAN FRANCISCO — The Roman Catholic Bishop of Oakland, Calif., filed a fifth amended declaratory judgment and breach of statutory duty complaint in a California federal court against numerous insurers and the California Insurance Guarantee Association (CIGA), which the plaintiff believes assumed responsibilities for its now-insolvent insurer, seeking a declaratory judgment stating that the plaintiff is entitled to a defense and indemnity regarding covered claims for the more than 300 suits filed against it related to alleged clergy sexual abuse.
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October 10, 2024
Florida Panel Dismisses Reinsurer’s Appeal From Insolvency Proceeding
TALLAHASSEE, Fla. — In a brief per curiam disposition, a Florida appellate panel partly dismissed and partly affirmed an offshore reinsurer’s appeal of the denial of its motion to lift an automatic stay in a workers’ compensation insurer’s liquidation and to compel arbitration.
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October 10, 2024
Claims Objection Bar Date Extension Granted In Liquidation Of Vesttoo
WILMINGTON, Del. — A Delaware federal bankruptcy judge has granted a motion to extend the claims objection bar date by 180 days to April 7 in the Chapter 11 liquidation of Vesttoo Ltd. and its dozens of affiliates.
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October 09, 2024
Louisiana Federal Judge Tosses Hurricane Coverage Row With Guaranty Association
LAKE CHARLES, La. — After being advised that the parties have settled, a Louisiana federal judge dismissed a hurricane coverage dispute between insureds and the Louisiana Insurance Guaranty Association (LIGA), which was substituted for their now-insolvent insurer.
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September 30, 2024
Judge Orders Parties To File Stipulation Of Dismissal In Insurer Liquidation Case
TOPEKA, Kan. — After being advised of a settlement in the liquidation proceedings of an insolvent medical malpractice insurer, a Kansas federal judge in a docket-only entry ordered the parties to file a stipulation of dismissal by Nov. 18.
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September 30, 2024
Dismissal Granted To D&O Insurer In Coverage Dispute With Insurance Commissioner
OKLAHOMA CITY — An Oklahoma federal judge granted a D&O insurer’s motion to dismiss a declaratory judgment suit filed against it by the Oklahoma insurance commissioner, as receiver of another insurer in liquidation whose parent company was insured under a policy issued by the D&O insurer, finding that neither the liquidation order nor the Oklahoma Uniform Insurers Liquidation Act (OUILA) gives the insurance commissioner standing to “succeed” to the rights of the directors or officers.
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September 26, 2024
Claims Objection Bar Date Extension Sought In Liquidation Of Vesttoo
WILMINGTON, Del. — A Delaware federal bankruptcy judge has been asked to extend the claims objection bar date by 180 days in the Chapter 11 liquidation of Vesttoo Ltd. and its dozens of affiliates.
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September 25, 2024
Judge Grants Extension In $1B RICO Insurance Fraud Scheme Involving Magnate
RALEIGH, N.C. — Without providing an explanation, a North Carolina federal judge granted defendants’ motion for an extension to file answers to an amended complaint in a suit accusing them of Racketeer Influenced and Corrupt Organizations Act (RICO) violations related to their purported participation in a $1 billion scheme to defraud now-insolvent insurers once owned by former insurance magnate Greg Lindberg.
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September 25, 2024
Judge Tosses All Claims In Hurricane Coverage Dispute With Guaranty Association
NEW ORLEANS — “Considering” the parties’ joint dismissal motion, a Louisiana federal judge dismissed with prejudice a breach of contract suit over damages from Hurricane Ida filed against the Louisiana Insurance Guaranty Association (LIGA), which was substituted for an insolvent homeowners insurer.
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September 24, 2024
Judge Grants DOJ’s $1.45M Forfeiture Bid In Bribery Case Against Insurance Magnate
STATESVILLE, N.C. — A North Carolina federal judge on Sept. 23 granted the Department of Justice’s (DOJ) motion for the preliminary forfeiture of two bank accounts totaling $1,454,758.45 seized by the Federal Bureau of Investigation while investigating a case resulting in a retrial at which the former owner of now-insolvent insurers was again convicted of bribery and conspiracy, finding that the government established the required nexus to show that the seized proceeds were related to the crimes.
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September 24, 2024
Discovery Ruling Issued In Asbestos Coverage Row Involving Insolvent Insurer
OMAHA, Neb. — A Nebraska federal magistrate judge granted in part National Indemnity Co. (NICO)’s motion to compel discovery of an insurer in its suit seeking to enforce obligations by multiple insurers, one of whom is now insolvent, for the liability NICO incurred related to claims for asbestos exposure, finding that the attorneys’ eyes only designation (AEO) must be removed from discovery material due, in part, to the insurer’s failure to “articulate why an AEO designation is the right tool to prevent this harm.”
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September 23, 2024
Confidentiality Stipulation Filed In $300M Ponzi Fraud Case Involving Insurers
MIAMI — Plaintiffs and defendant Wells Fargo filed a confidentiality stipulation in a Florida federal court in a putative class action suit alleging that Wells Fargo aided and abetted fraud in a “massive” Ponzi scheme purportedly orchestrated by owners of insurers, some of whom are now in receivership, resulting in elderly investor victims losing more than $300 million after scheme operators sold them promissory notes secured by collateral in stranger-oriented life insurance policies (STOLIs).
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September 17, 2024
SEC Files Rule Compliance Notice In Fraud Suit Against Owner Of Defunct Insurers
WINSTON-SALEM, N.C. — The U.S. Securities and Exchange Commission on Sept. 16 filed a notice of compliance with local rules in a North Carolina federal court regarding its brief responding to a motion to compel discovery filed by insurance magnate Greg Lindberg, a former owner of insurers now in receivership, in a suit alleging that he, his advisory services company and its former executive defrauded clients of more than $75 million.
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September 17, 2024
Florida Judge Denies Dismissal Bid In Investors’ Fraud Suit Over $65M Deal
ORLANDO, Fla. — Without explanation, a Florida judge denied dismissal of a complaint in which entities that purportedly invested about $65 million in a managing general agent just months before affiliated insurance companies were liquidated allege that they were defrauded.
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September 16, 2024
Insurance Magnate Appeals $166.7M Dutch Arbitral Award To 4th Circuit
GREENSBORO, N.C. — Greg Lindberg, who in a separate proceeding moved for acquittal of his conviction on retrial for bribing the North Carolina insurance commissioner, filed a notice of appeal in a North Carolina federal court that he and his related companies are appealing to the Fourth Circuit U.S. Court of Appeals an Aug. 14 judgment of $166,797,838 granted in favor of insolvency practitioners for a Dutch insurer in liquidation to confirm a Dutch tribunal’s arbitral award and judgment.