Bender v. State, Department of Financial Services

In this consolidated case, we address whether a trial court abuses its discretion under the “Insurers Rehabilitation & Liquidation Act” (“IRLA”) when it limits an insured claimant’s recovery to policy limits, where the claimant has obtained a final judgment in excess of policy limits after liquidation proceedings under the Act are voluntarily initiated by the insurer.

Based on our consideration of the statutory scheme of the Act, we hold that the trial court did not abuse its discretion in limiting Appellants’ recovery to policy limits. Accordingly, we affirm the trial court’s decision for the…