Global Bankers Insurance Group (North Carolina)

NC Court of Appeals Rules That MOU Is Enforceable

On June 19, 2023, a three-judge panel for the North Carolina Court of Appeals issued a unanimous decision regarding the Memorandum of Understanding (MOU) lawsuit. The Court affirmed the Trial Court’s conclusions that the MOU was enforceable and that the Defendants are liable for fraud. The Court also concluded that the Receiver was entitled to money damages, in addition to specific performance, and remanded the case to the Trial Court in that regard. Please contact Michael McDonald if you would like a copy of the order.

Task Force Chair - John Colpean;   Staff Contact - Bill O'Sullivan Senior Health Insurance Company of Pennsylvania (Pennsylvania)

PA Supreme Court Affirms Approval of Rehabilitation Plan

On June 20, 2023, the Pennsylvania Supreme Court issued a per curiam order affirming the Pennsylvania Commonwealth Court’s approval of the proposed Rehabilitation Plan for Senior Health Insurance Company of Pennsylvania (SHIP). The one-line order indicated that opinions would follow. The Rehabilitation Plan, which requires policyholders to choose from rate increase and benefit reduction options, has been challenged by several insurance regulators. Court-ordered injunctions in 3 states, cease and desist orders in 11 states, and pending litigation in 3 states make the path and timeline of implementation of the Rehabilitation Plan uncertain. The SHIP Task Force is monitoring all relevant proceedings and will keep the affected guaranty associations updated on developments.

Task Force Chair - Pamela Olsen;   Staff Contact - Joni Forsythe