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equiring the insurer to produce documents and records. However, the court
further found that the judge erred in granting a default judgment on the trial
date when an answer had been filed and not stricken by the court.
Missouri Angoff v. Holland‐America Ins. Co. Trust, 937 S.W. 2d 213 (Mo. App. 1996).
The Court of Appeals upheld the trial court's order regarding a final
liquidation plan which permitted, in part, the Receiver to estimate the value
of unliquidated and undetermined claims pursuant to Missouri statutes
including permitting estimation of IBNR. The court found that the receiver
had broad discretion in conducting and managing a liquidation and that the
Missouri insolvency statutes grant the receiver considerable latitude in
evaluating and determining claims by estimation. The court held that IBNR
losses were subject to estimation, to the extent that those types of claims
can be determined with “reasonable certainty”. In response to the
arguments from the reinsurance community that this interpretation
rendered the statutes an unconstitutional “taking,” and a violation of due
process rights, the court found that the adoption of a liquidation plan was a
valid exercise of police power. Moreover, the court held the statute
permitting estimation was procedural in nature and could be applied
retroactively.
Freedy v. Trimble‐Compton Produce Co., 329 Mo. 879, 46 879, 46 S.W.2d 822
(1931) reversing, 32 S.W.2d 147 (Mo. App. 1930). The Wisconsin insurance
commissioner as liquidator of a Wisconsin mutual insurance company brought
suit to collect on assessments against a Missouri policyholder. In holding that
assessments made by a court in insolvency proceedings are binding on
members of a mutual insurance company regardless of residence, the Missouri
Supreme Court noted that in the particular circumstances of this case, the
assessment decree was not binding on the former member who was a
Missouri resident since the member's insurance policy had expired and thus
the membership had ceased before the liquidation proceeding was instituted
and therefore, the Wisconsin court did not have jurisdiction over the member
which it would have had had the policy been in force at the time the liquidation
proceeding was instituted.
McPherson v. U.S. Physicians Mut. Risk Retention Group, 99 S.W.3d 462 (Mo. Ct.
App. W.D. 2003). Missouri state district court judge discharged the special
deputy receiver appointed to wind up the affairs of the insolvent insurance
companies. The state district court judge found that the special deputy receiver
engaged in willful and negligent misconduct of her duties. The Missouri Court of
Appeals for the Western District held that the district court had the inherent
power to order the receiver to disgorge the unjustified fees. The court reasoned
that the receiver was not immune for her own acts and omissions and, when
acting as the special deputy receiver, she was an officer of the court. However,
the court also held that the district court did not have the authority to award the
auditor’s costs, fees, and expenses in conjunction with the review of the special
deputy receiver’s activities. Of further interest, the judge was directed to recuse
herself upon remand based upon the appearance of impropriety, bias and
partiality.
Relfe v. Spear, 6 Mo. App. 129 (1878). The Missouri insurance commissioner
brought suit against the receivers of five insolvent life insurance companies on
the question of who had the right to deposits made by each of the insurers.
The court held the Missouri commissioner was not the trustee of the securities
required by Missouri law to be deposited although the commissioner may be
the custodian. The equity court under the statutes of Missouri has supervision