Editor, Mealey's Litigation Reports: Reinsurance and Insurance Insolvency

NEW YORK -  The New York Liquidation Bureau is not a state agency and therefore not subject to audit by the state comptroller, New York’s highest court unanimously ruled on Oct. 11.

 “We recognize that the statutory framework of the Insurance Law grants the Superintendent legal title to the assets of the insolvent insurer; however, equitable title remains with the distressed insurer for distribution to the creditors and policyholders,” Judge Eugene F. Pigott Jr. wrote for the court. 

The New York Court of Appeals refused to enforce subpoenas served on the New York Insurance Department by state comptroller Thomas P. DiNapoli. The subpoenas sought testimony regarding official accounts, funds, books and records and the production of specified documents.

More coverage available in the Oct. 19 issue of Mealey's Litigation Report:  Reinsurance