In mid-June, a Texas court adjudicated a dispute between an insurance receiver and an insurer that claimed that it was owed more than twice as much from the insolvent insurer due to a misclassification of its claim. The dispute arose out of the receivership of the Vesta Fire Insurance Corporation and Global Reinsurance Corporation. Global Re submitted a proof of claim in an amount exceeding $6 million, and the special receiver classified the claim in such a way that Global Re was entitled to about $ 1.5 million. Global Re objected, indicating that it believed its claim should have been allowed in an amount exceeding $3.5 million. The receiver applied for final disposition of Global Re’s disputed claim, and the Texas state court approved the final disposition in the class and amount originally determined by the receiver. Texas v. Vesta Fire Insurance Corp., No. D-1-GN-06-002366 (Tex. Dist. Ct. June 15, 2016).
