commonwealth department insurance pennsylvania

LexisNexis® Mealey's™ Insurance Insolvency Legal News
Headline Insurance Insolvency Legal News from LexisNexis®

• Judge Confirms Liquidators' Awards, Finds No Prejudice In Insurer's Redomestication
  NEW YORK - Arbitration awards in favor of the joint liquidators of Electric Mutual Liability Insurance Co. (EMLICO) should be confirmed because the redomestication of EMLICO to Bermuda did not prejudice one of its reinsurers, a New York federal judge held May 30 (OneBeacon America Insurance Co. formerly known as Commercial Union Insurance Co. v. David E.W. Lines, et al., No. 03-7376, S.D. N.Y.; 2008 U.S. Dist. LEXIS 42789). Full story on lexis.com
• Judge Upholds Deepening Insolvency Claim Against Reliance's Accounting Firm
  HARRISBURG - A Pennsylvania trial judge on June 13 recognized the Reliance Insurance Co. liquidator's deepening insolvency theory as an independent cause of action because he alleged another cause of action such as negligence (Joel S. Ario, insurance commissioner of the Commonwealth of Pennsylvania in his official capacity as liquidator of Reliance Insurance Co. v. Deloitte & Touche LLP and Jan A. Lommele, No. 734 M.D. 2002, Pa. Cmwlth.). Full story on lexis.com
• Nebraska Supreme Court Reverses $4.7M Verdict Against Insurance Agent
  LINCOLN, Neb. - Whether an insurance agent and its president committed a fraudulent transfer of premiums allegedly owed to an insolvent insurer is a question of fact for a jury, not the judge, the Nebraska high court found June 6, reversing and remanding a $4.7 million directed verdict (State of Florida ex rel. Department of Insurance of the State of Florida, receiver for United Southern Assurance Co. v. Countrywide Truck Insurance Agency Inc., et al., No. S-06-1220, Neb. Sup.; 2008 Neb. LEXIS 83). Full story on lexis.com
• Insolvent Primary Insurer, Not Excess Carrier Had Duty To Defend, 11th Circuit Finds
  ATLANTA - An excess insurer did not have a duty to defend an underlying settlement obtained without its consent because the insolvent primary insurer and later the Florida Insurance Guaranty Association (FIGA) assumed that duty, the 11th Circuit U.S. Court of Appeals held May 29 (United States Fire Insurance Co. v. Freedom Village of Sun City Center Ltd, et al., No. 07-15360, 11th Cir.; 2008 U.S. App. LEXIS 11591). Full story on lexis.com
• Rehabilitation Plan For Reinsured Insolvent Insurer Approved
  AUSTIN, Texas - A District Court of Travis County, Texas, 53rd Judicial District judge on June 6 approved a rehabilitation plan for an insolvent insurer, following the newly enacted Texas Insurer Receivership Act, noting that the plan was fair and equitable to all claimants and that while in receivership, the estate has maintained reinsurance collections of 82 percent of billed amounts (The State of Texas v. Highlands Insurance Co., No. D-1-GV-03-04537, Travis Co., Texas, 53rd Jud. Dist.). Full story on lexis.com
• Documents Related To Reinsurance Contracts Are Relevant, Judge Says
  ST. LOUIS - A federal judge on June 4 granted a reinsurer's request for the production of documents from an insolvent insurer's liquidator related to whether the 43 reinsurance contracts that are the subject of the underlying suit were written on a "risk attaching" basis or a "loss occurring" basis because the documents are relevant to the parties' claims and their production is not unduly burdensome (Midwest Employers Casualty Co. v. Legion Insurance Co., No. 07-870, E.D. Mo.). Full story on lexis.com
• NJPLIGA To Pay PIP Benefits To Uninsured Passenger, Court Says
  TRENTON, N.J. - The New Jersey Property-Liability Insurance Guaranty Association (NJPLIGA) as administrator of the Unsatisfied Claim and Judgment Fund (UCJF) is obligated to provide personal injury protection (PIP) benefits to an uninsured passenger for necessary medical treatment costs, a New Jersey appeals court affirmed June 19 (Omar Sanders v. Norma K. Langemeier, et al., No. A-4335-06T3, N.J. Super., App. Div.; 2008 N.J. Super. LEXIS 134). Full story on lexis.com
• Kentucky High Court Dismisses Action, Finds Stay Clause Inapplicable
  FRANKFORT, Ky. - A trial court properly dismissed a negligence lawsuit for failure to revive the lawsuit within a year of the plaintiff's death, a Kentucky Supreme Court majority ruled June 19, finding that a stay statute did not come into effect due to the defendant's insurer's insolvency because there was no live, pending action for the Kentucky Insurance Guaranty Association (KIGA) to defend (Hardin County, Ky., doing business as Hardin Memorial Hospital, et al. v. Bessie Wilkerson, et al., Nos. 2005-SC-000183-DG & 2005-SC000206-DG, Ky. Sup.; 2008 Ky. LEXIS 151). Full story on lexis.com
• Appeals Court Says LIGA Required To Cover Loss Regardless Of Deductible
  LAKE CHARLES, La. - An endorsement requires the Louisiana Insurance Guaranty Association (LIGA) to cover any loss under an insolvent insurer's policy regardless of the amount of the deductible, a Louisiana appeals court held May 28, reversing and remanding (Floyd Rideau, et al. v. Walter J. Edwards, et al., No. 08-168, La. App., 3rd Cir.; 2008 La. A