Bankruptcy, Insolvency, and Their Impact on Insurance Allocation

June 26, 2015 10:45am

Jeanine D. Clark
Margolis Edelstein

Ernesto R. Palomo

Locke Lord LLP

Peter L. Tracey
Perkins Coie LLP

Robert Lenahan
Associate General Counsel
Legion Insurance Company (in liquidation)

  • Allocation in policyholder bankruptcies
    • Different approaches
    • Valuing future losses
      • Garlock discussion/update
      • Valuing supplemental defense costs (i.e. costs in addition policies)
    • Standing issues
  • Defunct companies
    • Revival of defunct companies to access insurance – state of the law
    • Who controls defense and settlement and related issues?
  • Recovery from insolvent insurers
    • Status of U.S. and UK law
    • Allocation approaches
      • Prevalence of the pro rata approach in the U.S. and UK
      • Choice of law – Midland (all sums possible in New York)
    • Is IBNR permitted?
      • How do you value this?
    • How to prepare and present a claim
      • Trigger and date of first exposure (DOFE) issues
      • Exhaustion issues
      • How do you value the impact of exclusions (e.g. pollution exclusion)?
  • State Guaranty Associations
    • Assessing the impact of Farmers Mutual
      • No contribution for other insurers
      • Is this case a sign of things to come or an outlier?
      • Impact on Carter Wallace ruling regarding insolvents