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Bankruptcy
Defalcation
Insurance Premiums

Comm. Insurance for the State of West Virginia, In His Capacity as Receiver of George Washington Life Insurance Co. v. Robert Markwith; Edward Addy

Published: Nov. 22, 1997 | Result Date: Oct. 14, 1997 | Filing Date: Jan. 1, 1900 |

Case number: 9603602 –  $821,664

Judge

Robin L. Riblet


Attorneys

Plaintiff

Kenneth A. Zak


Defendant

William C. Beall


Experts

Plaintiff

Michael D. Anderson
(Anderson & Associates) (technical)

Facts

Defendants Robert Markwith and Edward Addy, were owners, officers, directors and operators of StopLoss Concepts Inc., an insurance agency headquartered in Paso Robles. Beginning in 1985, defendants transacted stop-loss insurance in California on behalf of George Washington Life Insurance Company (GWLIC), specifically group accident and health stop loss insurance issued to employers who were self-insured up to a specific loss point. The GWLIC insurance covered losses above the employer's self-insured level. Defendants marketed the insurance, performed underwriting, issued insurance certificates, collected premiums and performed limited claims functions on the insurance. In September 1990, pursuant to a court order, plaintiff, the State of West Virginia Commissioner of Insurance, seized the assets of GWLIC. Within one day of learning of the seizure, defendants paid $447,567.68 in claims with GWLIC premium monies. Defendants had also previously failed to remit additional premiums to the insurer. The plaintiff brought this action against defendants alleging causes of action for defalcation while acting in a fiduciary capacity pursuant to 11 U.S.C. º523 (a)(4).

Settlement Discussions

Settlement discussions did not take place.

Other Information

The decision was reached approximately four years and 11 months after the case was filed.

Length

three days


#112891

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