United States Fidelity & Guaranty Co. v. Hilyard Drilling Co. (In re Hilyard Drilling Co.)

MEMORANDUM OPINION

JAMES G. MIXON, Bankruptcy Judge.

On January 25, 1985, Hilyard Drilling Company, Inc.-, (Hilyard), filed a voluntary petition in bankruptcy under the provisions of Chapter 11 of the Bankruptcy Code. For several years prior to the filing of the petition, United Insurance Agency, Inc., a general agent for United States Fidelity Guaranty Company, (USF & G), had arranged Hilyard’s insurance needs. These coverages included general liability, worker’s compensation, automobile, fire and extended coverage. In the normal course of the prior transactions, all insurance would first be…