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Liquidation of Global Liberty Insurance Company of New York

On October 13, 2021, Global Liberty Insurance Company of New York (Global Liberty), an auto insurer with an approved independent livery program in New York State, was placed into liquidation, and the Acting Superintendent of the New York State Department Financial Services (DFS) was appointed Liquidator (the Liquidation Order).[i] Global Liberty is the third auto insurer in the Atlas Financial Holding Inc. (Atlas) portfolio to be placed in liquidation.[ii] Last year, American Country Insurance Company and American Service Insurance Company, two other Atlas companies that specialized in insuring commercial drivers, including taxicabs, limousines, paratransit, and airport transit, were also declared insolvent and placed into liquidation.[iii]

Pursuant to the Liquidation Order, all existing insurance policies with Global Liberty are cancelled effective December 13, 2021, or the date that the policy is set to expire, whichever is earlier.[iv] Furthermore, all parties are now prohibited from commencing or prosecuting any arbitrations or lawsuits against Global Liberty. This means that medical providers cannot pursue Global Liberty for their unpaid no-fault claims in either arbitration or court.

To collect on unpaid no-fault claims, medical providers must now file proofs of claims with the New York Liquidation Bureau (NLB). Pursuant to the Liquidation Order, all proofs of claims, along with any supporting documentation, must be e-filed with the NYLB on or before February 14, 2022, using the electronic portal located on the website www.nylbpoc.org. To the extent that our firm has pending Global Liberty claims filed in arbitration, we will file proofs of claims with the NYLB on clients’ behalf.

Russell Friedman & Associates is not just a collection practice. We do All Things No Fault®, which includes helping our clients identify other avenues for collection when no-fault benefits are not available through arbitration or litigation. If you need help understanding the process for filing a claim with the NYLB or to learn more about pursuing No Fault arbitration and how the Firm can provide quality legal counsel during the process, please contact us today.

 

[ii] Atlas Financial Holdings Announces Closing of Acquisition of Global Liberty Insurance Company of New York and Related Companies, Press Release, dated March 11, 2015, https://www.sec.gov/Archives/edgar/data/1539894/000153989415000010/pressreleaseregloballibert.htm.

[iii] Agreed Order of Liquidation with a Finding of Insolvency (Judge Meyerson, August 11, 2020), https://www.osdchi.com/PDF%20Files/Scanned%20Orders/ASIC_ACIC_GIC/AgreedOrderOfLiquidationWithAFindingOfInsolvency08112020.PDF.

[iv] Global Liberty Insurance Company of New York, Legal Notices, New York Liquidation Bureau, https://www.nylb.org/GlobalLiberty.htm.

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