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Mealey's Insurance Insolvency

  • January 17, 2025

    Bid To Pursue Resolution With Vesttoo Affiliate In Israel Draws Opposition

    WILMINGTON, Del. — Israeli investors’ request for a Delaware federal bankruptcy court to grant relief from the injunction in the Chapter 11 liquidation of Vesttoo Ltd. and dozens of affiliates so they can pursue arbitration and/or liquidation proceedings in Israel has drawn objections that the investors argue should be rejected.

  • January 17, 2025

    Partial Dismissal Recommended In $300M Ponzi Fraud Case Involving Bank, Insurers

    MIAMI — A Florida federal magistrate judge issued a report and recommendation advising granting in part and denying in part motions to dismiss filed by Wells Fargo in a receivership case and a related putative class action alleging that Wells Fargo aided and abetted fraud in a “massive” Ponzi scheme purportedly orchestrated by owners of insurers, some of which 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).

  • January 16, 2025

    South Carolina Orders Insurer, Captive Reinsurer To Stop Writing New Business

    COLUMBIA, S.C. — Documents that South Carolina regulators have made publicly available show that Atlantic Coast Life Insurance Co. (ACL) and ACL’s captive reinsurer Southern Atlantic Re Inc. (SAR) were confidentially put into administrative supervision in April 2024 and then ordered to stop writing new business by the end of 2024.

  • January 15, 2025

    Citing Settlement, Judge Dismisses Hurricane Coverage Row With Insolvent Insurer

    LAFAYETTE, La. — After being advised that the parties have settled, a Louisiana federal judge dismissed a homeowner’s suit against his now-insolvent insurer for its purported failure to cover damages caused by Hurricanes Laura and Delta.

  • January 09, 2025

    Partial Dismissal Granted In Suit Over Financing With Now-Insolvent Insurer

    NEW YORK — A New York state court justice granted in part an investment placement agent’s and related entity’s motion to dismiss in an aiding and abetting fraud and negligent misrepresentation suit over the agent’s alleged failure to disclose the creditworthiness of certain entities in a financing transaction, including a now-liquidated insurer, finding in part that the lender plaintiffs failed to sufficiently state a claim for negligent misrepresentation.

  • January 09, 2025

    Vice Chancellor Addresses Privilege Claims In DUFTA Case Discovery Dispute

    WILMINGTON, Del. — A Delaware Chancery Court vice chancellor ordered plaintiffs to produce some documents they had argued were privileged and to pay for additional depositions in a putative class suit over an alleged scheme to strip capital from an insurance subsidiary on which many policyholders depend for long-term care (LTC) disability benefits.

  • January 08, 2025

    Liquidation, Injunction Orders Entered For 2 Special Purpose Captive Insurers

    WILMINGTON, Del. — A Delaware Chancery Court vice chancellor on Jan. 7 entered liquidation and injunction orders regarding two special purpose captive insurance companies — American Casualty Reinsurance of Delaware LLC (ACRE) and American Equine Insurance Company LLC (AEIC) — that the Delaware Department of Insurance seized in June 2024 under confidential orders.

  • January 08, 2025

    Pennsylvania Appellate Judge Discharges Insurance Commissioner As Liquidator

    HARRISBURG, Pa. — Without providing explanation, a Pennsylvania appellate court judge issued an order discharging the Pennsylvania insurance commissioner as the statutory liquidator of Penn Treaty Network America Insurance Co.

  • January 07, 2025

    Magnate Files Answer In $1B Insurance Fraud Case, Says No RICO Enterprise Found

    RALEIGH, N.C. — Insurance magnate Greg Lindberg and his co-defendant asset management companies filed their answer to an amended complaint in a North Carolina federal court in a suit accusing them and other parties 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 Lindberg.

  • January 06, 2025

    Judgment Granted for Insurers In Dispute Over MDL Opioid Liability Coverage

    NEW CASTLE, Del. — A Delaware state court judge granted summary judgment for insurers in their declaratory judgment action seeking a judgment that they have no duty to indemnify or defend insured AmerisourceBergen, a distributor of prescription opioids, in multidistrict litigation, finding that because the suits seeking to recover economic losses do not seek damages related to bodily injury, the insurers have no duty to defend or indemnify under the policies.

  • January 06, 2025

    Citing Wildfire Risks, California Issues Net Cost Of Reinsurance Regulation

    SACRAMENTO, Calif. — The California Department of Insurance has issued a Net Cost of Reinsurance (NCOR) in Ratemaking Regulationthat Commissioner Ricardo Lara says was prompted by insurers pulling back from the state’s property insurance market in light of the growing risk of wildfires. 

  • January 03, 2025

    Settlement, Recapture Proposed Involving Reinsurer That Is In Liquidation

    WILMINGTON, Del. — The Delaware Chancery Court has been asked to approve a deal involving settlement and recapture agreements under which stock reinsurance company Scottish Re (U.S.) Inc. (SRUS), which is in liquidation, would receive a recapture payment of $86,210,609.56.

  • January 02, 2025

    Intervention Sought Over Setoff Rights In Connecticut Rehabilitation Proceeding

    HARTFORD, Conn. — Policy owners’ setoff rights are the focus of an intervention motion that three investment managers filed in Connecticut state court regarding the rehabilitation of life insurer PHL Variable Insurance Co. and the subsidiaries that reinsure its liabilities.

  • January 02, 2025

    North Carolina Panel Affirms Judgment For Insurer In Hurricane Coverage Dispute

    RALEIGH, N.C.  — The North Carolina Court of Appeals affirmed a lower court’s ruling granting summary judgment in favor of a now-insolvent insurer in a dispute over coverage for purported damage caused by Hurricane Florence, finding that the lower court correctly held the insured was barred from filing suit under the insurance contract because he failed to submit for an insurer-requested examination under oath (EUO), a condition precedent under the policy.

  • December 20, 2024

    3rd Circuit Reverses, Deems Joint Underwriting Association A Public Entity

    PHILADELPHIA — The Third Circuit U.S. Court of Appeals reversed in part and affirmed in part a district court’s ruling that issued an injunction preventing enforcement of certain legislative changes to 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, finding that the JUA is a public entity rather than a private one due to the state’s “legally protectable interest in the JUA.”

  • December 18, 2024

    2 Investors Want To Pursue Resolution With Vesttoo Affiliate In Israel

    WILMINGTON, Del. — Two Israeli investors have asked a Delaware federal bankruptcy court for relief from the injunction in the Chapter 11 liquidation of Vesttoo Ltd. and its dozens of affiliates so they can pursue arbitration and/or liquidation proceedings in Israel.

  • December 17, 2024

    Oklahoma Judge Approves Over $614K In Expenses For Insurer’s Receivership Estate

    OKLAHOMA CITY — An Oklahoma state court judge approved a motion filed by Oklahoma Insurance Commissioner Glen Mulready, as receiver for property and casualty insurer Go Insurance, which the court previously ordered into liquidation, seeking approval of certain fees and expenses, including $614,121.54 in administrative expenses.

  • December 16, 2024

    U.K. Insurer Wins Stay Of Arbitration In Reinsurance Billings Dispute

    NEW YORK — Saying in part that the U.S.-based defendant didn’t show “by a preponderance of the evidence that an agreement to arbitrate exists between the parties,” a New York federal judge cited “New York state law” in granting a U.K.-based insurer’s petition to stay arbitration.

  • December 13, 2024

    Judge Extends Claims Deadline Objection In Workers’ Comp Insurer Chapter 11 Case

    WILMINGTON, Del. — A Delaware federal bankruptcy judge granted a litigation trustee’s 13th motion to extend the deadline to object to claims in the Chapter 11 bankruptcy proceeding of Patriot National Inc., a workers’ compensation insurance firm for which a litigation trust is now acting as successor-in-interest.

  • December 12, 2024

    Stipulation Of Dismissal Filed In D&O Insurance Coverage Dispute With Receiver

    OKLAHOMA CITY — A receiver for an insurer in liquidation filed in an Oklahoma federal court a stipulation of dismissal in his declaratory judgment suit against a D&O insurer that insured the parent company of the insurer in liquidation.

  • December 12, 2024

    TRO Bid By Risk Retention Group Denied In Breach Of Contract Missed Premiums Row

    MISSOULA, Mont. — A Montana federal judge denied a motion for a temporary restraining order (TRO) filed by a risk retention group (RRG) in its breach of contract suit over missed premiums against insureds and a related entity, finding that the insurer’s allegations regarding the potential for liquidation fail to show the irreparable harm required for a TRO.

  • December 12, 2024

    Insurer Seeks Summary Judgment Argument In Asbestos Coverage Row

    OMAHA, Neb. — National Indemnity Co. (NICO) has moved in Nebraska federal court for oral argument on pending motions for partial summary judgment in its suit to enforce obligations by defendants it calls reinsurers — one of whom is now insolvent — for liability NICO incurred related to claims for asbestos exposure.

  • December 06, 2024

    10th Circuit Issues Reversal Of Judgment For Liability Insurer In Coverage Row

    DENVER — The 10th Circuit U.S. Court of Appeals reversed and remanded a district court’s judgment for a liability insurer in a dispute between it and a health insurer regarding coverage to the health insurer in an underlying multidistrict litigation antitrust dispute involving an excess errors and omissions (E&O) policy issued by a now-insolvent insurer.

  • December 05, 2024

    Bid For Insurance Magnate’s Halfway House Stay Denied In Money Laundering Case

    CHARLOTTE, N.C. — A North Carolina federal magistrate judge denied a motion filed by insurance magnate Greg Lindberg, the former owner of now-insolvent insurers, for detention at a residential reentry center or halfway house pending sentencing after he 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.

  • December 05, 2024

    Judge Tosses Suit By Insurance Mogul With ‘Turbulent History Of Litigation’

    TAMPA, Fla. — A Florida federal judge on Dec. 4 issued a sua sponte order dismissing without prejudice a declaratory judgment suit filed by insurance mogul Greg Lindberg against the North Carolina Department of Insurance and its commissioner regarding a receivership seeking in part a declaratory judgment as to the total liability owed to Lindberg’s now-insolvent North Carolina insurers, finding that “the parties’ dispute is better litigated in the state court of North Carolina.”