Bankruptcy, Insolvency, and Their Impact on Insurance Allocation
Jeanine D. Clark
Ernesto R. Palomo
Locke Lord LLP
Peter L. Tracey
Perkins Coie LLP
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