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21
Received 1/7/2020 8:33:59 AM Commonwealth Court of Pennsylvania Filed 1/7/2020 8:33:00 AM Commonwealth Court of Pennsylvania 1 LIN 2015 IN THE COMMONWEALTH COURT OF PENNSYLVANIA IN RE: Lincoln General Insurance Company : In Liquidation No. 1 LIN 2015 APPLICATION FOR APPROVAL OF REPORT AND RECOMMENDATIONS ON LINCOLN GENERAL INSURANCE COMPANY CLAIMS UNDISPUTED AND RESOLVED FROM JANUARY 1, 2019 TO DECEMBER 31, 2019 Applicant, Jessica K. Altman, Insurance Commissioner of the Commonwealth of Pennsylvania, in her official capacity as the Statutory Liquidator ("Liquidator") of Lincoln General Insurance Company ("Lincoln"), pursuant to Pa.R.A.P. 3784(a) and 40 P.S. § 221.45, respectfully applies to this Court for an Order approving her Report and Recommendations on Lincoln General Insurance Company Claims Undisputed and Resolved from January 1, 2019 to December 31, 2019. In support of her Application, the Liquidator avers the following: BACKGROUND 1. Then-Insurance Commissioner Teresa D. Miller, and her successor -in-office, was appointed Statutory Liquidator of Lincoln pursuant to this Court's Order dated November 5, 2015 ("Liquidation Order"). Jessica K. Altman succeeded Ms. Miller in August 2017 and is now the Insurance Commissioner and Statutory Liquidator of Lincoln. 2. The Liquidation Order provided that "in addition to the notice requirements of Section 524 of Article VI, 40 P.S. § 221.24, the Liquidator shall publish notice in newspapers of See The Insurance Depai tment Act of 1921, Act of May 17, 1921, P.L. 789, as amended, 40 P.S. §§ 221.1 -221.63. (This footnote is added here and is not contained in the text of the Liquidation Order that is being quoted in paragraph 2). 1

Transcript of Received 1/7/2020 8:33:59 Commonwealth Court of … › Regulations...Received 1/7/2020 8:33:59 AM...

Page 1: Received 1/7/2020 8:33:59 Commonwealth Court of … › Regulations...Received 1/7/2020 8:33:59 AM Commonwealth Court of Pennsylvania Filed 1/7/2020 8:33:00 AM Commonwealth Court of

Received 1/7/2020 8:33:59 AM Commonwealth Court of Pennsylvania

Filed 1/7/2020 8:33:00 AM Commonwealth Court of Pennsylvania 1 LIN 2015

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

IN RE: Lincoln General Insurance Company :

In Liquidation No. 1 LIN 2015

APPLICATION FOR APPROVAL OF REPORT AND RECOMMENDATIONS ON LINCOLN GENERAL INSURANCE COMPANY CLAIMS

UNDISPUTED AND RESOLVED FROM JANUARY 1, 2019 TO DECEMBER 31, 2019

Applicant, Jessica K. Altman, Insurance Commissioner of the Commonwealth of

Pennsylvania, in her official capacity as the Statutory Liquidator ("Liquidator") of Lincoln General

Insurance Company ("Lincoln"), pursuant to Pa.R.A.P. 3784(a) and 40 P.S. § 221.45, respectfully

applies to this Court for an Order approving her Report and Recommendations on Lincoln General

Insurance Company Claims Undisputed and Resolved from January 1, 2019 to December 31,

2019. In support of her Application, the Liquidator avers the following:

BACKGROUND

1. Then -Insurance Commissioner Teresa D. Miller, and her successor -in -office, was

appointed Statutory Liquidator of Lincoln pursuant to this Court's Order dated November 5, 2015

("Liquidation Order"). Jessica K. Altman succeeded Ms. Miller in August 2017 and is now the

Insurance Commissioner and Statutory Liquidator of Lincoln.

2. The Liquidation Order provided that "in addition to the notice requirements of

Section 524 of Article VI, 40 P.S. § 221.24, the Liquidator shall publish notice in newspapers of

See The Insurance Depai tment Act of 1921, Act of May 17, 1921, P.L. 789, as amended, 40 P.S. §§ 221.1 -221.63. (This footnote is added here and is not contained in the text of the Liquidation Order that is being quoted in paragraph

2).

1

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general circulation, where Lincoln has its principal places of business that: (a) specifies the last

day for the filing of claims; (b) explains the procedure by which claims may be submitted to the

Liquidator; (c) provides the address of the Liquidator's office for the submission of claims; and

(d) notifies the public of the right to present a claim, or claims, to the Liquidator." See Liquidation

Order, ¶15. By November 23, 2015, the Liquidator provided Notice of the Liquidation Order and

a Q&A document that, inter alia, informed all interested parties to download a Proof of Claim

("POC") form from the Insurance Department's website, or call for a copy of the POC form.

3. 40 P.S. § 221.45 requires the Liquidator to present to the Court a report of the claims

against the insurer with recommendations, including the name and address of each claimant, the

particulars of the claim, and the amount of the claim finally recommended, if any. Pa.R.A.P.

3784(a) further refines 40 P.S. § 221.45, and requires the Liquidator to present to the Court a report

of the claims against the insurer's estate that have been resolved, with recommendations, including

the information required by 40 P.S. § 221.45, as well as the priority class, and whether the claim

determination was finalized because no objection was filed, no exceptions were taken to a referee's

recommended decision, a recommended decision was sustained by the Court or the parties agreed

to a settlement.

REPORT AND RECOMMENDATIONS ON CLAIMS UNDISPUTED AND RESOLVED AS OF DECEMBER 31, 2019

4. The Liquidator's Report and Recommendations on Lincoln General Insurance

Company Claims Undisputed and Resolved from January 1, 2019 to December 31, 2019, is

comprised of two parts and attached hereto as Exhibits A and B (collectively referred to as

"Report"). The claims are sorted alphabetically, within each class, by the claimant's last name or

company name. The amount claimed by the claimant, inter alia, is also included in the Report.2

2 If the claimant did not indicate a specific claim amount on the Proof of Claim, the claimed amount is noted as $0.

2

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5. The first part of the Report, which addresses claims that were determined and

finalized without objection, and are referred to as "Undisputed Claims", reflects Notices of

Determinations ("NODs") issued by the Liquidator for which the objection period expired on or

before December 31, 2019. In this Report, the Liquidator respectfully submits her

recommendations for a total of 112 Undisputed Claims with an allowed amount of $1,356,431.31,

in accordance with Pa.R.A.P. 3784(a) and 40 P.S. § 221.45, for this Court's approval. The list of

Undisputed Claims is attached hereto as Exhibit A.

6. The second part of the Report, which addresses claims that were determined and

finalized because no exceptions were taken to a referee's recommended decision, a recommended

decision was sustained by the Court or the parties agreed to a settlement, and are referred to as

"Resolved Claims", is a list of the disputed claims to which objections were filed and resolved on

or before December 31, 2019. There were 4 Resolved Claims with an allowed amount of

$1,335,000.00 during calendar year 2019, as reflected in Exhibit B attached hereto.

7. As set forth in Exhibits A and B, the Liquidator respectfully submits her

recommendations for a total of 116 claims with a total allowed amount of $2,691,431.31 in

accordance with Pa.R.A.P. 3784(a) and 40 P.S. § 221.45 for this Court's approval.

8. In fulfilling her statutory requirements, the Liquidator carefully reviewed all

documentation submitted by the claimants in support of the claims and independently determined

the merit, classification and value of each claim, as required by Article V. See 40 P.S. §§ 221.37,

221.38, 221.44, 221.45.

9. Given the discretion afforded the Liquidator pursuant to 40 P.S. § 221.45(a) to

"comport, compromise, or in any other manner negotiate the amount for which claims will be

recommended to the court," the Liquidator believes that the classification and amounts she has

3

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determined for the reported claims are appropriate, fair and equitable and consistent with the

relevant provisions of Article V. The Liquidator further believes that the approval of the claims

listed in the attached Report is in the best interests of the Lincoln estate claimants and other

creditors.

10. Pursuant to Pa.R.A.P. 3784(a) and 40 P.S. § 221.45(b), the Liquidator respectfully

requests that this Court approve the classification and allowed amount of the claims listed in the

Report and allow the claimants listed in the Report or their lawful assignees to receive a

distribution in accordance with 40 P.S. § 221.44 at the time and in the manner as approved by this

Court.

WHEREFORE, the Liquidator respectfully requests that this Court grant her Application

and approve and allow the claims as listed in the Report attached as Exhibits A and B, enter an

Order in the form attached hereto, and grant such other relief as the Court shall determine

appropriate and just.

Dated: \ 1

By:

Respectfully submitted:

)11 )z Preston M. Buckman (I.D. No. 57570) PA Office of General Counsel Pennsylvania Insurance Department Office of Liquidations, Rehabilitations and Special Funds 901 North 7th Street Harrisburg, PA 17102 (717) 886-2080

Attorney for Jessica K. Altman, Insurance Commissioner of the Commonwealth of Pennsylvania, in her Official Capacity as Statutory Liquidator of Lincoln General Insurance Company (In Liquidation)

4

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EXHIBIT A

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Undisputed and R

esolved Claim

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eriod: 01/01/2019

thru 12/31/2019

Num

ber of Undisputed C

laims:

112 Am

ount Claim

ed: 10,543,362.87 A

mount A

pproved: 1,356,431.31

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Page 11: Received 1/7/2020 8:33:59 Commonwealth Court of … › Regulations...Received 1/7/2020 8:33:59 AM Commonwealth Court of Pennsylvania Filed 1/7/2020 8:33:00 AM Commonwealth Court of

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Page 14: Received 1/7/2020 8:33:59 Commonwealth Court of … › Regulations...Received 1/7/2020 8:33:59 AM Commonwealth Court of Pennsylvania Filed 1/7/2020 8:33:00 AM Commonwealth Court of

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Page 15: Received 1/7/2020 8:33:59 Commonwealth Court of … › Regulations...Received 1/7/2020 8:33:59 AM Commonwealth Court of Pennsylvania Filed 1/7/2020 8:33:00 AM Commonwealth Court of

EXHIBIT B

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Undisputed and R

esolved Claim

s R

esolved Claim

s

LINC

OLN

GE

NE

RA

L INS

UR

AN

CE

CO

MP

AN

Y

Report P

eriod: 01/01/2019

thru 12/31/2019

Num

ber of Resolved C

laims:

4 Am

ount Claim

ed: 849,969.73 A

mount A

pproved: 1,335,000.00

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Undisputed and R

esolved Claim

s Report

Resolved C

laims

LINC

OLN

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NE

RA

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CO

MP

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eriod: 01/01/2019 thru

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Page 18: Received 1/7/2020 8:33:59 Commonwealth Court of … › Regulations...Received 1/7/2020 8:33:59 AM Commonwealth Court of Pennsylvania Filed 1/7/2020 8:33:00 AM Commonwealth Court of

CERTIFICATION OF COMPLIANCE WITH PUBLIC ACCESS POLICY

I certify that this filing complies with the provisions of the Public Access Policy of the

Unified Judicial System of Pennsylvania: Case Records of the Appellate and Trial Courts that

require filing confidential information and documents differently than non -confidential

information and documents.

Dated: 1

Preston M. Buckman (I.D. No. 57570) PA Office of General Counsel Pennsylvania Insurance Department Office of Liquidations, Rehabilitations and Special Funds 901 North 7th Street Harrisburg, PA 17102 (717) 886-2080

Attorney for Jessica K. Altman, Insurance Commissioner of the Commonwealth of Pennsylvania, in her Official Capacity as Statutory Liquidator of Lincoln General Insurance Company (In Liquidation)

Page 19: Received 1/7/2020 8:33:59 Commonwealth Court of … › Regulations...Received 1/7/2020 8:33:59 AM Commonwealth Court of Pennsylvania Filed 1/7/2020 8:33:00 AM Commonwealth Court of

CERTIFICATE OF SERVICE

I hereby certify that I am this day serving the foregoing document upon all parties of record

in this proceeding in accordance with the requirements of 1 Pa. Code Chapter 33 in the following

manner:

Service via regular U.S. Mail addressed as follows:

Jordan L. Miller, Esquire jordanm@jdsalaw. corn Jeffers, Danielson, Sonn & Aylward, P.S. 2600 Chester Kimm Road Wenatchee, WA 98801 (509) 662-3685 (509) 662-2452 (Fax)

Arleigh P. Helfer III, Esquire ahelfer@schnader. corn Schnader Harrison Segal & Lewis LLP 1600 Market Street, Suite 3600 Philadelphia, PA 19103 (215) 751-2430 (215) 751-2205 (Fax)

DATED:

Anthony J. Urban, Esquire Anthony Urban Law Offices, P.C. 474 North Center Street, 3rd Floor P.O. Box 890 Pottsville, PA 17901-0890 (570) 622-1247

Matthew Binstock, CFA [email protected] Argo Partners 12 West 37th Street, 9th Floor New York, NY 10018 (212) 643-5444 (212) 643-6401 (Fax)

PRESTON M. BUCKMAN (I.D. #57570) Insurance Department Counsel Office of Liquidations, Rehabilitations

& Special Funds Governor's Office of General Counsel Capital Associates Building 901 North 7th Street Harrisburg, PA 17102 (717) 886-2080

Counsel for the Statutory Liquidator of Lincoln General Insurance Company

Page 20: Received 1/7/2020 8:33:59 Commonwealth Court of … › Regulations...Received 1/7/2020 8:33:59 AM Commonwealth Court of Pennsylvania Filed 1/7/2020 8:33:00 AM Commonwealth Court of

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

IN RE: Lincoln General Insurance Company :

In Liquidation No. 1 LIN 2015

RE: Liquidator's Report and Recommendations on Lincoln General Insurance Company Claims Undisputed and Resolved from January 1, 2019 to December 31, 2019

ORDER

AND NOW, this day of , 2020, upon consideration of the

Liquidator's Application for Approval of Report and Recommendations on Lincoln General

Insurance Company Claims Undisputed and Resolved from January 1, 2019 to December 31, 2019

("Application"), it is hereby ORDERED and DECREED:

1. The Application is GRANTED, and the claims listed in the Report and

Recommendations on Lincoln General Insurance Company Claims Undisputed and Resolved from

January 1, 2019 to December 31, 2019 ("Report"), are APPROVED and ALLOWED both as to

classification and amount as listed;

2. The Report is incorporated herein by reference; and

3. The Claimants listed in the Report or their lawful assignees shall receive a

distribution in accordance with 40 P.S. § 221.44 at the time and in the manner as approved by this

Court.

RENEE COHN JUBELIRER, JUDGE

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COMMONWEALTH OF PENNSYLVANIA GOVERNOR'S OFFICE OF GENERAL COUNSEL

January 7, 2020

Michael F. Krimmel, Chief Clerk Commonwealth Court of Pennsylvania 601 Commonwealth Avenue, Suite 2100 P.O. Box 69185 Harrisburg, PA 17120-9185

Re: Lincoln General Insurance Company (In Liquidation) No. 1 LIN 2015

Dear Mr. Krimmel:

Attached please find the Liquidator's Report and Recommendations on Lincoln Insurance Company Claims Undisputed and Resolved from January 1, 2019 to December 31, 2019, with regard to the above -referenced liquidation.

Thank you for your assistance in this matter.

PMB:drh

Enclosure

Very truly yours,

Preston M. Buckman Insurance Department Counsel

CAPITOL ASSOCIATES BUILDING I 901 NORTH 7TH STREET I HARRISBURG, PA 17102

Ph: 717-787-6009 I Fx: 717-772-4543 I www.insurance.pa.gov