NOLHGA Provides Amicus Support to Ohio General Liquidator
On Oct. 22, NOLHGA filed an amicus curiae brief supporting the liquidator’s request for Ohio Supreme Court review of a Court of Appeals decision in litigation involving the distribution priority of reinsurance claims under the Ohio priority statute.
This litigation arose out of the insolvency of Ohio General Insurance Co. and was initiated by a reinsurance creditor seeking to challenge the liquidator’s classification of claims under reinsurance contracts as general creditor claims in accordance with the Ohio priority statute. The trial court affirmed the liquidator’s classification, finding legislative intent to afford direct policyholders priority over reinsurance claims.
The Court of Appeals subsequently reversed the finding, ruling that the term “policies” as it appears in the priority statute is sufficiently broad to include all contracts of insurance, including reinsurance contracts. In reaching its conclusions, the Court of Appeals rejected all arguments based on legislative intent to protect the interests of individual policyholders, as well as noted precedents from other jurisdictions finding reinsurance claims to be ineligible for policy-level treatment based on public policy grounds.
The liquidator has filed a request for review of the Court of Appeals’s decision by the Ohio Supreme Court. In addition to the amicus support provided by NOLHGA, the National Association of Insurance Commissioners and the National Conference of Insurance Guaranty Funds have each filed amicus briefs in support of the liquidator’s request for review. The reinsurer’s response is due to be filed by Nov. 21. If the court accepts the case for review, a schedule for briefing on the merits will follow.
For further information, contact Joni Forsythe at 703.787.4103.
Staff Contact - Joni ForsytheThird-Quarter Insolvency & Assessment Data Survey Billings Mailed
The third-quarter 2001 insolvency and assessment data survey billings were mailed to guaranty associations on Nov. 8. This quarter’s billing process employed a new allocation system that allows greater flexibility in allocating expenses among states impacted by an insolvency. Please review the statements carefully and contact Paul Peterson at NOLHGA (703.787.4119) as soon as possible if you note any errors or have any questions.
In addition, preliminary company count and premium information to be used in the 2002 annual dues calculation should be mailed to guaranty associations in the next few weeks. This preliminary information is derived from the 2000 assessable premium data that guaranty associations recently received.
Staff Contact - Paul Peterson