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Arkansas
Colorado
Florida
Baldwin‐United Corp. v. Garner, 283 Ark. 385, 678 S.W.2d 754 (1984). The
insurance commissioner, as receiver of three insolvent insurance companies
owned by one corporation, proposed a rehabilitation plan which was approved
by the court. The parent corporation appealed the plan's provisions that: (i)
the rehabilitation court had exclusive jurisdiction over the assets of the
companies, and (ii) the rehabilitation court would refuse to honor a judgment
obtained in any other forum. In affirming the lower court's decision, the
Supreme Court of Arkansas announced that nothing contained in the
McCarran‐Ferguson Act or the Bankruptcy Act prohibits a state from
determining the rights of an insurance company's creditors. Furthermore, the
appellate court added, the lower court properly ordered that all claims to the
companies' assets be adjudicated in the rehabilitation court.
Colonial Penn Ins. Co. v. Colorado Ins. Guar. Assoc., 799 P.2d 448 (Colo. App.
1990). Colonial Penn, an insolvent excess insurer’s successor, brought action
against Insurance Guaranty Association seeking declaratory relief after
Association denied its claim. The court held that C.R.S. § 10‐4‐503 is
unambiguous, and that its application is limited to the coverage of
“person[s] insured under a policy issued by an insurer which has become
insolvent…” Colonial Penn is not such a person, nor is Colonial Penn’s claim
one “asserted against a person insured under a policy issued by an insolvent
insurer.” Therefore, its claim can not be considered a “covered claim.”
Fla. Dep't. Fin. Serv. v. Midwest Merger Mgmt., LLC, No. 4:07cv207‐
SPM/WCS, 2008 WL 3259045 (N.D. Fla. Aug. 6, 2008). There is a distinction
under Florida law between property that belongs to an insurer and property
contended by the receiver to be the assets of the insurer. 2008 WL 3259045
at 3 (citing Nova Ins. Group. Inc., v. Fla. Dep't of Ins., 606 So.2d 429, 433 (Fla.
1st DCA 1992). The former constitutes part of the receivership estate and any
claims to the property must be made before the Leon County Circuit Court
as part of the receivership proceeding. Id. (citing Nova at 433). Section
631.154(1), Fla. Stat. authorizes the receiver to demand delivery of funds,
assets, or property that is rightfully the estate of the impaired insurance
company. 2008 WL 3259045 at 3.
Imagine Ins. Co. v. State of Florida ex rel. the Dep't of Financial Serv., 999 So. 2d
693 (Fla. 1st DCA 2008). Funds in trust account set up to secure insurer's
obligations to reinsurer were not part of insurer's receivership estate. 999 So.
2d at 701 (citations omitted). If the receiver determines that funds, assets, or
property in the possession of another person are rightfully the property of the
estate, the receiver shall deliver to such person a written demand for immediate
delivery of the funds, assets, or property to the receiver, referencing this section
by number, referencing the court and docket number of the receivership action,
and notifying the person that any claim of right to the funds, assets, or property
by her or him must be presented to the court within 20 days after the date of
the written demand. Any person who holds funds, assets, or other property
belonging to an entity placed in receivership under this chapter shall deliver the
funds, assets, or other property to the receiver on demand...999 So. 2d at 695
n.* (citing s. 631.154(1), Fla. Stat. (2004)).
Shear Homes, Inc. v. Sheppard, 764 So. 2d 705 (Fla. 1st DCA 2000). Section
631.929, Florida Statutes mandates claimant's waiver any right to recover
attorney fees and costs from it when the claimant elected to seek benefits from
the Florida Workers' Compensation Insurance Guaranty Association (FWCIGA)
after the self‐insured workers' compensation fund which had insured the
employer became insolvent. 764 So. 2d 706.
Iowa
State ex rel. Hager v. Iowa National Mutual Ins. Co., 430 N.W.2d 420 (Iowa
1988). Several officers of an insolvent mutual insurance company in liquidation