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e. Claims Against the Estate Plan of Liquidation Date of Vesting of Rights and Liabilities Filing of Claims Court Approval or Rejection of Claims ‐ Adequate Proof Court Approval or Rejection of Claims ‐ Notice of Hearing Claims Against the Estate ‐ in General Policyholders’ Claims Policyholder Collatera Agent’s Claims for Commissions and in General Claims for Unearned Premiums Secured Creditors Claims of Surety Claims of Guaranty Funds Third Party Claims Class Action Claims Shareholders’ Claims Contingent Claims Estimation Schemes Claims for Interest Tax Claims Governmental/Superpriority Claims Assignment of Claims f. Distribution of the Assets Priorities in Allowance of Claims ‐ In General Priorities ‐ Federal Expenses of Administration Attorney’s Fees Taxation of the Insolvent Insurer’s Estate Unclaimed and Withheld Funds g. Interstate Relations Conservator ‐ Constitutionality Conservator ‐ Appointment Conservator ‐ Powers and Duties Ancillary Receiver ‐ Appointment Ancillary Receiver ‐ Filing of Claims Ancillary Receiver ‐ Powers and Duties Ancillary Receiver ‐ Relation to Domiciliary Receiver Liquidation of Special Deposits Liquidation of Alien Insurers Attachment, Garnishment or Execution 3
Priorities ‐ Interstate Claimants Reciprocity Judicial Comity and Jurisdiction h. Interactions With Bankruptcy Estates PART II Cross‐Border Run‐Offs and Receiverships A. United States – United States Assistance to Non‐U.S. Re/Insurance Run‐Off, Liquidation, Administration 1. Introduction 2. Chapter 15 Reinsurance Cases Filed Through February 2009 3. What is Chapter 15? a. Purpose and Effect of Chapter 15 b. Judicial Discretion Under Chapter 15 c. Eligibility Basics for Chapter 15 Recognition and Relief 4. Case Law Digest: Significant Reinsurance Chapter 15 Court Decisions 5. Policyholder Articulated Objections to Chapter 15 Relief in Aid of Solvent Schemes of Arrangement a. U.S. Bankruptcy Courts Do Not Have Jurisdiction to Grant Chapter 15 Recognition and Relief in Aid of Solvent Schemes of Arrangement b. Solvent Schemes Are Not “Foreign Proceedings” Eligible for Chapter 15 Relief c. The Scheme Process Denies Claimants Due Process, and Thus U.S. Bankruptcy Courts May Not Grant Chapter 15 Recognition and Relief in Aid of Such Schemes d. Schemes Violate the Sanctity of Contractual Rights in Violation of U.S. Law e. UK Court Sanction of Solvent Schemes Does Not Preclude U.S. Bankruptcy Court Consideration of Objections 4
Page 1 and 2: REFERENCE HANDBOOK ON INSURANCE COM
Page 3 and 4: Contributing Editors Cross‐Border
Page 5: Formal Proceedings ‐ Constitution
Page 9 and 10: Part III PART IV APPENDIX D. Bermud
Page 172 and 173:
Rhode Island Statutes TITLE 27 Insu
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(17) "Policyholder" means an insure
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(3) All creditors, assumption polic
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(2) If, at any time, the conditions
Page 180 and 181:
Run‐Off New York Seaton Ins. Co.
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as writs of seizure, were necessary
Page 184 and 185:
Igel v. Phillips, 183 A.D. 220, 169
Page 186 and 187:
wind up its affairs, even if the no
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insolvency, including the issue of
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over action would: (i) defeat domic
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the Commissioner of Insurance on be
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Sixth Circuit AmSouth Bank v. Dale,
Page 196 and 197:
action did not automatically preclu
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proceedings. The New York insurance
Page 200 and 201:
independent receivership proceeding
Page 202 and 203:
Connecticut Florida Grasso v. City
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instance, because the regulation of
Page 206 and 207:
company filed a motion for declarat
Page 208 and 209:
Commissioner of Ins. v. Mid‐Ameri
Page 210 and 211:
district court had exclusive jurisd
Page 212 and 213:
SEC v. Republic National Life Ins.
Page 214 and 215:
legislature granted exclusive juris
Page 216 and 217:
Rejecting the liquidator's motion,
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time as an administrative claim had
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mandate application of Florida's in
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This simple declarative sentence pr
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its earlier holding [Bonura v. Unit
Page 226 and 227:
In re Application for an Order Stay
Page 228 and 229:
to prosecution of claims against hi
Page 230 and 231:
were closely intertwined, the entir
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South Carolina Texas New South Life
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the insurance code. The trial court
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within the meaning of the insurance
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was overbroad in delaying indefinit
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financial institutions to transfer
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entities were in fact a "single bus
Page 244 and 245:
the company in that other state to
Page 246 and 247:
easoning that: 1) its earlier findi
Page 248 and 249:
McConnell v. All‐Coverage Insuran
Page 250 and 251:
company. The court also found that
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impermissible because they were not
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contrary appellate court judgment,
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exhaust the pro rata shares of solv
Page 258 and 259:
asserted a priority despite the fac
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The question presented was whether
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Cir. 2000). The Ninth Circuit adopt
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entity with those conferred or with
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Pennsylvania court had exclusive ju
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liquidator argued that Ohio’s sta
Page 270 and 271:
Vermont Costle v. Fremont Indemnity
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(“Munich”) and NAC Reinsurance
Page 274 and 275:
Pine Top Ins. Co. v. Continental Re
Page 276 and 277:
incapable of being performed," foun
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completion of the plan of arbitrati
Page 281 and 282:
the policy make specific provision
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the catastrophe policy prevents “
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sought only money damages. 3 Hence,
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Commissioner has reasonable grounds
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policyholders were brought against
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a supervision‐release order for a
Page 293 and 294:
secure a court‐ordered receiversh
Page 295 and 296:
no liability exists for any acts ta
Page 297 and 298:
stay of any proceeding in which an
Page 299 and 300:
Fields v. Fidelity General Ins. Co.
Page 301 and 302:
Illinois insurance code is vested i
Page 303 and 304:
Michigan Daniel v. Citizens' Mutual
Page 305 and 306:
appointment of a receiver to wind u
Page 307 and 308:
independent actuarial firm, and all
Page 309 and 310:
owned by one corporation, proposed
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den'd, 126 N.J. 389 (1991). The cou
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constitutional the statute under wh
Page 315 and 316:
The circuit judge's denial of plain
Page 317 and 318:
duplication provision of the PPCIGA
Page 319 and 320:
New York National Union Fire Ins. C
Page 321 and 322:
insurance companies pursuant to sta
Page 323 and 324:
Matter of Morgan, 277 N.Y. 203, 14
Page 325 and 326:
Alabama Arizona California Moody v.
Page 327 and 328:
Schenek v. Citizens Casualty Co., 6
Page 329 and 330:
disclosed in its annual statement.
Page 331 and 332:
insurance company, the court held t
Page 333 and 334:
Pennsylvania's interest in investig
Page 335 and 336:
Pennsylvania Commonwealth ex rel. C
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non‐mandatory preference for the
Page 339 and 340:
Powers and Duties of the Rehabilita
Page 341 and 342:
the insolvency clause of a reinsura
Page 343 and 344:
Financial Indemnity Company v. Supe
Page 345 and 346:
ecause they had constructive notice
Page 347 and 348:
Illinois law does not provide the D
Page 349 and 350:
claimed. Although the code allows t
Page 351 and 352:
040(3)(a) or 304‐33.190(2). Rathe
Page 353 and 354:
to the state's unemployment compens
Page 355 and 356:
State ex rel. ISC Financial Corp. v
Page 357 and 358:
authorizing the Liquidator to prope
Page 359 and 360:
implement the statutory liquidation
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that trust claimants will recover a
Page 363 and 364:
showing that the rehabilitator’s
Page 365 and 366:
insurer, sued former owner of insur
Page 367 and 368:
Brainard v. Foster, Civil Action No
Page 369 and 370:
Flowers v. Tennessee Trucking Ass
Page 371 and 372:
the insurer under Texas law; and th
Page 373 and 374:
state court against B.C. Rogers, an
Page 375 and 376:
People ex rel. Baylor v. Multi‐St
Page 377 and 378:
equiring the insurer to produce doc
Page 379 and 380:
failed to demonstrate to the contra
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intervention. It is not an abuse of
Page 383 and 384:
eview the actions of the insurance
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not reported losses (IBNR). The Sup
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Commonwealth tort claims against th
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Liquidation Act. On a petition for
Page 391 and 392:
defendant to bring the action to th
Page 393 and 394:
Main Ins. Co. v. Bradford, Williams
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proceedings against an insolvent Ne
Page 397 and 398:
Matter of Title, Etc., Co. of Buffa
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the R.C. 3955.19 stay provision as
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Casualty Insurance Guaranty Associa
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property without a hearing. The Cou
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consent of the liquidators, the bro
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ecording of an order of liquidation
Page 409 and 410:
Florida Imagine Ins. Co. v. State o
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executory contracts, and the insure
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procured new policies in a solvent
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Safeway liable for the entire amoun
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even lower interest rate than that
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North Carolina Texas North Carolina
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an individual and official capacity
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enterprise with United States Gener
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were not ultra vires acts. There we
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authorized by state law to petition
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Stamp v. Touche Ross & Co., 263 Ill
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control, or possession of the insur
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offers to compromise because severa
Page 435 and 436:
insolvent insurer brought an action
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"interested parties" in a proceedin
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Assets of the Insolvent Insurer's E
Page 441 and 442:
Garamendi v. SDI Vendome, No. CV 02
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for personal injury claim brought a
Page 445 and 446:
transacting any insurance business
Page 447 and 448:
Bent v. Hart, 10 Mo. App. 143 (1881
Page 449 and 450:
discretion allowed policyholders to
Page 451 and 452:
In re New State Life Ins. Co., 23 P
Page 453 and 454:
ecover a subscription fund executed
Page 455 and 456:
Pursuant to D.C. Code Ann. § 35‐
Page 457 and 458:
ecause all the directors of the dis
Page 459 and 460:
agree on whether Kentucky statutory
Page 461 and 462:
W. J. Jones & Son v. Independence I
Page 463 and 464:
precluding liquidator's avoidance o
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association's directors for monies
Page 467 and 468:
a Transit insured. Fifteen months l
Page 469 and 470:
court granted the motion. On appeal
Page 471 and 472:
unearned portion of the premium was
Page 473 and 474:
the insolvent Mission Insurance Com
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Drake v. Rollo, 7 Fed. Cas. Pg. 105
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judge to act as presiding judge ove
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$25,000 compromise would be paid to
Page 481 and 482:
express purpose is to avoid financi
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einsurance contract against moneys
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provision and therefore its ruling
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complaint, the defendants would not
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as an offset against the insolvent
Page 491 and 492:
Swiss Re made payments to Protectiv
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directors were not included in that
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purported rescission by the company
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members. The court further held tha
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instituting of the receivership pro
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would prevent a multiplicity of act
Page 503 and 504:
assessments against members of a do
Page 505 and 506:
Richards v. Hale, 14 O.C.D. 468, 1
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Wetmore v. Scalf, 85 S.C. 285, 67 S
Page 509 and 510:
mutual insurance company because Wi
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out liquidation assessment powers i
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their insurer became insolvent. Any
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insolvent carrier, sought to interp
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The Home Insurance Co. v. Hooper, 2
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coverage. The court held that cover
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insurance, and that Mission was not
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contract. Further, as the parties t
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agreement. The Colorado receiver cl
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preliquidation assets that could be
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agreements with Legion Insurance Co
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prediction, and was neither arbitra
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Guaranty Association (“PPCIGA”)
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contrary holding would permit these
Page 537 and 538:
People ex rel. Bolton v. Progressiv
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where the solvency of the company,
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agent of all premiums collected by
Page 543 and 544:
subsequent to institution of delinq
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corporate mismanagement and account
Page 547 and 548:
Mendel v. Garner, 283 Ark. 473, 678
Page 549 and 550:
The lower court denied the claim be
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definition, a “covered claim,”
Page 553 and 554:
Missouri MSEJ, LLC, v. Transit Cas.
Page 555 and 556:
medical malpractice action, which i
Page 557 and 558:
Suit was transferred to the court o
Page 559 and 560:
within policy limits. The insolvent
Page 561 and 562:
alleged negligence of an insured of
Page 563 and 564:
Arkansas Colorado Florida Baldwin
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liquidator was entitled to rely upo
Page 567 and 568:
Ohio Covington v. Ind. Dep’t of N
Page 569 and 570:
River abstention doctrines did not
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directly against manufacturer. The
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insurance commissioner entered into
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un ten months and twenty‐six days
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policies were delivered, the state
Page 579 and 580:
Accordingly, the manufacturer sough
Page 581 and 582:
Sizemore v. United Physicians Ins.
Page 583 and 584:
insolvency. The court found for pla
Page 585 and 586:
equires all claims against the rece
Page 587 and 588:
cancelled by order of the court, th
Page 589 and 590:
Dewey v. Davis, 82 Wis. 500, N.W. 7
Page 591 and 592:
April 18, the filing of the Missour
Page 593 and 594:
Texas Buckner v. Lloyd's Ins. Co. o
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payment by the California Insurance
Page 597 and 598:
the tortfeasors to recover its paym
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Ga. App. 660, 440 S.E.2d 254 (1994)
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Act. The Court also noted that whet
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opportunity to settle.” The court
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jurisdictions that did find associa
Page 607 and 608:
Ohio Lake Hospital System, Inc. v.
Page 609 and 610:
award. It became insolvent, however
Page 611 and 612:
Rhulen advanced claim payments to T
Page 613 and 614:
entitled to coverage from the Illin
Page 615 and 616:
the negligence claim, brought by th
Page 617 and 618:
insurer did not thereby release fro
Page 619 and 620:
when contingent claims must necessa
Page 621 and 622:
In Matter of Liquidation Of Integri
Page 623 and 624:
from the time damages are certain o
Page 625 and 626:
In re N.Y. Surety Co., 723 N.Y.S.2d
Page 627 and 628:
Governmental/Superpriority Claims S
Page 629 and 630:
Reliance Ins. Co. v. Shriver, Inc.,
Page 631 and 632:
Georgia Boyd v. Wright, 148 Ga. 216
Page 633 and 634:
policyholders, judgment creditors o
Page 635 and 636:
when it appears that such funds or
Page 637 and 638:
within the insurance statutes. Cred
Page 639 and 640:
Priorities ‐ Federal U.S. Supreme
Page 641 and 642:
statute was preempted by the federa
Page 643 and 644:
instituting or taking further actio
Page 645 and 646:
Florida Dilme v. SBP Serv., Inc. an
Page 647 and 648:
Massachusetts Commissioner of Insur
Page 649 and 650:
New York Finkelstein v. Van Schaick
Page 651 and 652:
Texas Op. Att'y. Gen. WW‐795 (Tex
Page 653 and 654:
Illinois People ex rel. Potts v. Co
Page 655 and 656:
Arizona Colorado State ex rel. Low
Page 657 and 658:
equirements had not been complied w
Page 659 and 660:
Michigan Commissioner of Insurance
Page 661 and 662:
commissioner certain securities for
Page 663 and 664:
State ex rel. Cincinnati Life Assn'
Page 665 and 666:
and without assets in trust in Flor
Page 667 and 668:
State ex rel. Burgess v. Crabbe, 11
Page 669 and 670:
jurisdiction over the attorneys in
Page 671 and 672:
Pennsylvania Lewycka v. Springfield
Page 673 and 674:
meaning, held that the Indiana clai
Page 675 and 676:
Rose v. Fid. Mut'l Life Ins. Co., 2
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uniform law or that it was necessar
Page 679 and 680:
of incorporation of a mutual insure
Page 681 and 682:
jurisdiction over that litigation f
Page 683 and 684:
ehabilitation in Indiana and had ob
Page 685 and 686:
Krueger v. Tabor, 546 So.2d 1317 (L
Page 687 and 688:
and, because of the guarantees, for
Page 689 and 690:
Rhode Island injunction by arguing
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In prior proceedings in this case,
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state law issues and was contingent
Page 695 and 696:
Bryant v. Shields, Britton & Fraser
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against the Wisconsin Insurance Sec
Page 699 and 700:
PART II Cross‐Border Run‐Offs a
Page 701 and 702:
CASE(S) Highland Insurance Company
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CASE(S) Hatteras Reinsurance Ltd NR
Page 705 and 706:
• The Court in which the Chapter
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As previously noted, of the sevente
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WFUM Pool Solvent Schemes ~ In re G
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arrangement, including solvent run
Page 713 and 714:
5. Chapter 15 ~ Official Text 1501.
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(d) §1502. Definitions. (2) an ind
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(c) (d) A request for comity or coo
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(a) (b) If the decision or certific
Page 721 and 722:
§1521. Relief that may be granted
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(4) approval or implementation of a
Page 725 and 726:
B. United Kingdom ‐‐ The Positi
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1. majority votes in favour of the
Page 729 and 730:
eported claims, was not of great im
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and Jersey. The English schemes wou
Page 733 and 734:
Life Assurance Limited (FPLLA) both
Page 735 and 736:
MB Group Plc, Re (1989) 5 B.C.C. 68
Page 737 and 738:
issued a third circular which state
Page 739 and 740:
court had jurisdiction to sanction
Page 741 and 742:
The Judge (Roger Kaye Q.C.) allowed
Page 743 and 744:
the agreement would not be avoided
Page 745 and 746:
submitted that cover had been provi
Page 747 and 748:
liquidators and in the English bank
Page 749 and 750:
court did not strike out the petiti
Page 751 and 752:
Stein so that he could pursue it. B
Page 753 and 754:
Part III of the Winding‐up and Re
Page 755 and 756:
v. Proceedings in Canada to Assist
Page 757 and 758:
D. Bermuda ‐‐ The Bermuda Persp
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Hong Kong Court to restructure the
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Excluded Lines - Ocean Marine Louis
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Covered Claim - Unearned Premium co
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Oregon Corvallis Aero Service, Inc.
Page 797 and 798:
purposes of joint and several liabi
Page 799 and 800:
Affiliated FM Ins. Co. v. State, 33
Page 801 and 802:
Heninger v. Riley, 317 Pa. Super. 5
Page 803 and 804:
assumed the obligations of Dr. Lucc
Page 805 and 806:
Florida Hawaii Fernandez v. Florida
Page 859 and 860:
Case Law Digest Supplement LIFE & H
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Texas Messagephone, Inc., et al v.
Page 863 and 864:
were invested in four group annuity
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Alaska Arizona Illinois Unisys Corp
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Minnesota Honeywell, Inc. v. Minnes
Page 869 and 870:
plan participants rather than the G
Page 871 and 872:
esponsible for attorneys’ fees an
Page 873 and 874:
Alaska Arizona Indiana Unisys Corp.
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Federal Jurisdiction - Preemption c
Page 877 and 878:
Supreme Court California New York U
Page 879 and 880:
Assessments Assessments - In Genera
Page 881 and 882:
the sales transaction is not uncons
Page 883 and 884:
State Department of Insurance Insur
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Kentucky State Department of Insura
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New Jersey New Mexico State Departm
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Virginia Washington State Departmen
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© 2009 National Association of Ins
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CO Marcy Morrison Commissioner (Wes
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KS Sandy Praeger Commissioner NAIC
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NH Roger A. Sevigny Commissioner NA
Page 899 and 900:
TN Leslie A. Newman Commissioner (V
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NAIC OFFICES NAIC Central Office: 2
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GUARANTY FUND DIRECTORY Updated 02/
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nolhga.com :: state ga contact info
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