Old Southern Life Insurance Co. v. Alabama Insurance Department

BRADLEY, Judge.

This case involves an appeal by Old Southern Life Insurance Company (Old Southern) from the Montgomery County Circuit Court’s order affirming Alabama Insurance Department’s (Department’s), order requiring Old Southern to recognize a $378,000 law suit settlement as a liability on its 1982 financial report.

The $378,000 liability in question arose from a settlement of a judgment rendered against Old Southern on behalf of a policyholder, William Riddle, for a lawsuit based on fraud. Riddle purchased a Medicare supplement policy from old Southern in 1982. One of Old Southern’s…