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liquidator was entitled to rely upon the public records which recited that the
purchase price had been paid.
Michigan Borman's, Inc. v. Michigan Property & Casualty Guar. Ass'n., 717 F. Supp. 468
(E.D. Mich. 1989). The court held that a provision of the state property &
casualty guaranty association act which denied reimbursement of claims filed
by a person having a net worth greater than 1/10th of 1% of the aggregate
premiums written by member insurers in the state in the preceding calendar
year denied claimant its right to equal protection under the law, holding that
the criteria of net worth as a means to identify claimants entitled to
reimbursement was not rationally related to the legislative purpose of
allocating loss to those best able to absorb loss.
New Jersey
Chandler v. Omnicare/HMO, Inc., 756 F. Supp. 187 (D. N.J. 1990). The New
Jersey District Court dismissed (1) an action brought by a terminated employee
against the former employer's insolvent health insurer (Omnicare/The HMO,
Inc.) for continuation of health insurance coverage and damages; and (2) a
cross‐claim by her former employer against the insurer in rehabilitation on
Burford abstention grounds. The court found that New Jersey has a complex
and thorough regulatory scheme to rehabilitate insolvent insurers which can
best be accomplished without interference from outside courts that would
simultaneously dissipate the insolvent insurer's assets.
New Mexico Aztec Well Servicing Co. v. Property & Cas. Ins. Guar. Assoc. of the State, 115
N.M. 475, 853 P.2d 726 (1993). Claimant under policy issued by excess
liability insurer which subsequently became insolvent was entitled to award
of $100,000 from property and casualty insurance guaranty association.
Although the claimant had already recovered more than that amount from
solvent primary insurer, depletion of proceeds from the primary liability
policy triggered excess insurance policy and, if excess insurer were solvent,
it would have been liable to claimant under its policy for $298,000.
In re Mission Ins. Co., 112 N.M. 433, 816 P.2d 502. Policy issued to pay
workers’ compensation claims against insured employer that exceeded
specific retention on an individual claim or all amounts that exceeded
employer’s aggregate retention for that year, was “direct insurance” within
the meaning of a statute governing property and casualty insurance
guaranty association’s obligation to pay covered claims against insolvent
insurers. Therefore, a self‐insured employer with a claim against insolvent
insurer for excess workers’ compensation coverage had a “covered claim”
within the meaning of property and casualty insurance guaranty law.
New York
Finkelstein v. Van Schaick, 149 Misc. 101, 267 N.Y.S. 471 (1933). An attorney
should apply for a contingent fee, sought for obtaining settlements of claims
against an insurer, as part of the liquidation proceedings.
In re 24‐52 Forty‐Fourth St., Long Island City, 175 Misc. 249, 26 N.Y.S. 2d 265
(1941). An assignment of participating interest in a bond and mortgage after
an order for the liquidation of a guaranty company was held to be a transfer of
all rights arising from the guaranty itself. The court further held that this
divested the original holder of the right to payment of principal and interest
since there was no express reservation of the right and no other proof to the
contrary.
In re Empire State Surety Co., 214 N.Y. 553, 108 N.E. 825 (1915). A surety
company was ordered liquidated under the provisions of Section 63 of the
insurance code of 1909. Those policyholders who fell into one of the following
categories had claims mature enough to entitle them to share in company
assets: 1) those who had judgments rendered against them before the entry of