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