By James M. Lawniczak Abstract *** Chapter 110 covers insurance issues that often arise in federal bankruptcy cases. Due to their nature, certain types of insurance policies are implicated more often in bankruptcy proceedings than others. For example, probably the most discussed type of insurance in bankruptcy cases is Directors and Officers’ Liability Insurance (“D&O”). This is because...

Abstract *** Having considered the bankruptcy process generally in Chapter 107 and undertaken an inquiry into how insurance functions as an asset of the bankruptcy estate in Chapter 108 above, this chapter turns to the impact of bankruptcy on insurance-related matters and addresses issues that may arise between insurers, the debtor-insured, and claimants seeking recourse from the debtor’s insurance policies...

By Susan N. K. Gummow Abstract *** Having reviewed the basic elements and concepts of bankruptcy law in Chapter 107 above, Chapter 108 focuses on how insurance functions as an asset of the debtor’s bankruptcy estate. Section 108.01 begins by examining the relationship between the debtor’s bankruptcy estate, its insurance policies, and the rights and obligations arising under the insurance policies...

By Susan N. K. Gummow and Eric J. Shukis Abstract *** The filing of bankruptcy impacts the debtor-insured, its insurers, and parties asserting claims that may implicate the debtor’s insurance policies. Chapter 107 introduces some of the basic elements and concepts of bankruptcy law, which are a necessary foundation to understanding how bankruptcy affects insurance as an asset of the bankruptcy estate...

By Patrick H. Cantilo, Mark F. Bennett, and Arati Bhattacharya Abstract *** In this chapter, five insurance insolvencies are discussed in detail to illustrate a number of the issues that are presented in the management of troubled insurers. The companies discussed are the Legion Insurance Group ( see Section 104.01), Shenandoah Life Insurance Company ( see Section 104.02), Lumbermens Mutual Casualty Company...

By Richard G. Liskov and John J. Sarchio Abstract * * * This chapter discusses the regulation of alien multi-national insurers—insurers domiciled outside the United States but operating in U.S. insurance markets. The chapter begins with an overview in Section 103.01 of such insurers and how they are structured, either as U.S. branches of the alien company or as separate subsidiaries of the alien parent...

By Bruce Baty and Jodi Adolf Abstract * * * Chapter 102 discusses the consequences of an insurer insolvency for the policyholders, agents, excess insurers and reinsurers of the insolvent insurer. The chapter begins in Section 102.01 with a general discussion of the liquidation process, and then considers the impact of an insurer insolvency on the policyholders of the insurer. In most instances, after an...

By Katherine Billingham Abstract Liquidation of an insurance company is the equivalent of a Chapter 7 bankruptcy and is the remedy of last resort for an insurer in financial difficulty. This chapter examines the timing, purpose and grounds for liquidation, as well as the process of the liquidation from the commencement of the proceedings to the winding up of the affairs of the liquidated insurance company. The powers...

By Patrick H. Cantilo, Mark F. Bennett, Arati Bhattacharya Abstract *** This chapter addresses the rehabilitation of insurers. In general, upon the advent of receivership proceedings (for purposes of this chapter, any proceeding through which state insurance regulatory officials or their designees are given at least temporary control of the insurer by a court of competent jurisdiction for purposes of rehabilitation...

By Douglas Hertlein Abstract * * * Chapter 99 analyzes all forms of insurer receiverships. When a commissioner’s regulatory powers, including the power to issue supervision orders, prove to be insufficient to address financial or other operational difficulties of an insurer, state law provides a mechanism for the commissioner to seek an order placing the insurer into receivership and, subject to oversight...

By Kristen J. Brown Abstract * * * This chapter examines the powers and remedial options afforded to state insurance commissioners for their regulation of insurance company insolvency. State laws arm insurance commissioners with broad intervention powers and various degrees of intervention options designed to both avoid and, when necessary, respond to the ultimate failure of an insurance company due to insolvency...

LexisNexis is publishing a new volume of our authoritative treatise on the nation’s insurance law, the New Appleman on Insurance Library Edition . It is entitled “Insolvency and Bankruptcy.” Comprehensive new Volume 9 is solely devoted to insurer as well as policyholder insolvency and bankruptcy and the ensuing law, procedures and consequences Subscribers to the Library Edition are given free access...

Lexis Nexis now sells: General Liability Insurance Coverage: Key Issues in Every State General Liability Insurance Coverage: Key Issues in Every State by Randy Maniloff & Jeffrey Stempel is designed to give the stakeholders in the claims process ready access to the law of all 50 states on the most important liability insurance issues to quickly learn and assess state law relevant to coverage disputes. Access...

By Daniel W. Gerber, Jeffrey L. Kingsley, and Clayton D. Waterman Chapter 74 provides a comprehensive analysis of the duties, obligations and limits of reinsurers in reinsurance transactions. Section 74.01 begins by examining the duty of utmost good faith. Section 74.01[1] discusses the cedent's duty of utmost good faith. Section 74.01 [2] sets forth the reinsurer's duty of utmost good faith which...

By Joseph D. Jean and Gregory D. Miller Section 53.01 introduces homeowner's insurance generally and discusses the types, processes and coverages available in homeowner's policies. Section 53.01[1] discusses the general organization and scope of homeowner's policies and tracks the unique features of homeowner's policies as combining multiple lines of insurance protection. Section 53.01[2] describes...

The 2013 Publication Update of New Appleman Insurance Law Practice Guide Features: • New Practice Commentary Throughout the Publication by Members of the Appleman Editorial Board • Revision of 10 Chapters • Case Updates Throughout the Publication • Completely Updated over 400-page Appendix of Multi-Jurisdictional Charts on Key Insurance Coverage Issues The 2013 Edition of the New...

By James Crabtree, Anthony Menzies, Jonathan Rogers, and Susannah Wakefield, Partners, Taylor Wessing This chapter begins in Section 79.01 with a discussion of the history and structure of the Lloyd's Market. A clear understanding of the Lloyd's (and wider London) Market, as it operates today, benefits from an understanding of relevant historical landmarks. The shaping of the market over the decades provides...

By Kimberly M Welsh, Vice President and Assistant General Counsel, RGA The following chapter discusses important principles of reinsurance regulation today. It begins in Section 78.01 with an overview of the regulatory framework for reinsurers and reinsurance transactions in the United States. Reinsurance is regulated principally by the states and not at the federal level, pursuant to the McCarran-Ferguson Act, which...

By David A. Attisani and Ethan V. Torrey, Partners, Choate, Hall & Stewart LLP Fair, efficient, and reliable dispute resolution procedures are vital to protect the rights and clarify the duties of parties arising under reinsurance contracts. This chapter provides a broad overview of reinsurance dispute resolution practices in the United States, which enable parties to enforce their rights under reinsurance contracts...

By Barry Leigh Weissman, Partner, Edwards Wildman Palmer LLP, and Bella Shirin, Associate, SNR Denton US LLP Chapter 76 discusses the role of utmost good faith in reinsurance transactions and dispute resolution. Section 76.01 explains how the English doctrine of uberrimae fidei , first discussed in the 1766 case of Carter v. Boehm , morphed into the American concept of utmost good faith. The basics of utmost good...

By Marc J. Pearlman, Mark A. Kreger, and Steve Nunn This chapter begins with a description of the key functions performed by reinsurance intermediaries. (Note that intermediaries can be individuals or entities.) Section 75.01 notes that these functions must be distinguished from those performed by ordinary retail insurance brokers. In exchange for their role in the design, placement, and implementation of complex...

By Robert Tomilson, Benjamin Blume, and Daisy Khambatta, Members, Cozen O'Connor It might be said that while a reinsurer has only one duty, to pay covered claims, a cedent's duties are manifold. The cedent, usually without the consent or participation of the reinsurer, underwrites the risk, administers the business, determines the coverage, pays the claims, and allocates the losses. The reinsurer is bound...

By Keith A. Dotseth, Michael J. Steinlage, David C. Linder and Melissa M. Weldon, Partners, Larson • King, LLP Chapter 72 discusses basic principles related to the formation and terms of reinsurance contracts. The chapter begins by considering the manner in which reinsurance contracts are formed as well as the documents that can evidence such a contractual arrangement. The chapter then continues with a discussion...

By Daniel W. Gerber, Jeffrey L. Kingsley and Fallyn B. Reichert, Attorneys, Goldberg Segalla LLP Chapter 71 provides a thorough introduction to reinsurance and its commercial purposes; the operation of reinsurance contracts; and certain fundamental legal concepts. Section 71.01 begins by discussing the history of reinsurance and the evolution of the reinsurance agreement. This section highlights the changing relationship...

By Jay Barry Harris, Lee Applebaum, and Jennifer Tatum Root, Attorneys, Fineman, Krekstein & Harris, P.C. Chapter 69 examines the insurance of commercial vehicles with a particular emphasis on insurance in the commercial trucking industry. This chapter explores federal and state regulation of truckers' and motor carriers' insurance, the scope of liability coverage under the most common forms of insurance...