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consent of the liquidators, the broker assumed the risk for liability to them for
the funds dispensed.
People v. Equity Funding Life Ins. Co., 61 Ill. 2d 303, 335 N.E.2d 448 (1975). The
claimants who objected to the plan of liquidation contended that the amended
plan of liquidation, which included a settlement for the claimants, cannot bar
the claims of defrauded claimants who were not given actual notice of the
amended plan of liquidation and settlement. The court held that the objectors
could not raise the point for the first time on appeal as the appellees would
effectively be deprived of the opportunity to refute the allegation.
Indiana
Reliance Lumber Company v. Brown, 4 Ind. App. 92, 30 N.E. 625 (1892). A
policyholder sustained a fire loss on May 8, 1890 and claimed under a policy
issued by an insolvent manufacturers mutual fire insurance company, which
was placed in liquidation on April 26, 1890. The policyholder's policy was
canceled effective the same day as the court order as to which the receiver
advised all policyholders, pursuant to notice on May 2, 1890 received by the
policyholder on May 12, 1890. The policyholder's policy provided for a 30 day
notice of cancellation. In noting that the policyholder was a member of the
insolvent company, in contrast to a holder of a cash policy, the court held that
such policyholders are barred by the appointment of a receiver for the
company from any further notice of the cancellation of the coverage and thus,
any losses that arise after the appointment of the receiver are barred without
any notice to such policyholders, in spite of what the policy provides.
Kansas In re Liquidation of Nat’l Colonial Ins. Co., 20 Kan. App. 2d 802, 892 P.2d 926
(1995). The Kansas Insurance Commissioner filed a petition for the
liquidation of an insolvent insurer. The liquidator filed an application to
amend agreed order of liquidation to extend claims bar date. Sole
shareholder of the insurance company claimed that he was not notified and
appealed the extension. The Court of Appeals held that (1) the agreed order
for liquidation was a “consent decree” and (2) the consent decree could not
be modified without notifying interested parties and holding a hearing.
Louisiana Bobo v. American Fidelity Fire Ins. Co., 550 So.2d 1278 (La. App. 4th Cir. 1989).
Rehabilitator of insolvent New York insurer had authority, pursuant to Uniform
Insurers Liquidation Act, to cancel policies issued to Louisiana insureds, as long
as rehabilitator satisfied requirements of Louisiana law for cancellation of
policies. Proof of mailing of notices of cancellation submitted by rehabilitator
held insufficient in this instance; therefore, policy was in effect at time of loss,
and Louisianan Guaranty Association was required to cover the claim.
Dardar v. Insurance Guaranty Association, 556 So.2d 272 (La. App. 1st Cir. 1990).
Rehabilitator of insolvent New York insurer had authority, pursuant to
Uniform Insurers Liquidation Act, to cancel policies issued to Louisiana
insureds, as long as rehabilitator satisfied requirements of Louisiana law for
cancellation of policies. Proof of mailing of notices of cancellation submitted by
rehabilitator held insufficient in this instance; therefore, policy was in effect at
time of loss, and Louisiana Guaranty Association was required to cover the
claim.
Michigan
Attorney General ex rel. Commissioner of Insurance v. Lapeer Farmers Mutual
Fire Ins. Ass'n., 300 Mich. 320, 1 N.W. 2d 557 (1942). The trial court did not
abuse its discretion in denying the petition of objecting members and creditors
to intervene in a receivership proceeding against an insolvent insurer, brought
by Attorney General on the relation of the insurance commissioner, for the